In unveiling new vehicle emissions rule, Biden administration emphasizes power of choice

Choices: That’s what a new set of federal regulations that will be key to shaping the US clean-energy transition are all about.

On Wednesday, the Biden administration unveiled a final rule governing tailpipe emissions from passenger cars and light- and medium-duty trucks for model years 2027–2032.

The new standards—while allowing a slower transition to EVs through the end of this decade in response to concerns from the auto industry, car dealers, and unions—nonetheless were hailed as some of the most significant climate regulations ever.

• They are “technology-neutral,” meaning automakers can achieve reductions across their fleets using whatever technologies they want.
• They’ll reduce CO2 emissions by approximately 7.2 billion tons.
• And they’ll result in about $13 billion in annual public health benefits, the EPA estimates.
• For light-duty vehicles, the EPA estimates the standards will cut CO2 emissions in half by model year 2032 compared to the existing rule.

“On factory floors across the nation, our autoworkers are making cars and trucks that give American drivers a choice—a way to get from point A to point B without having to fuel up at a gas station,” Ali Zaidi, Biden’s national climate advisor, said in a statement. “From plug-in hybrids to fuel cells to fully electric, drivers have more choices today.”

Nearly a third of US greenhouse gas emissions come from the transportation sector.

The original proposal would have pushed for EVs to make up 60% of new light-duty sales by 2030 and 67% by 2032, as Tech Brew previously reported. (EVs made up 7.6% of sales in 2023.)

Under the final rule, the EPA projects that automakers “may choose to produce battery electric vehicles (BEVs) for about 30% to 56% of new light-duty vehicle sales” for model years 2030–2032, according to an EPA fact sheet.

The Biden administration moved to slow the transition over concerns from interest groups over waning EV demand, lack of public charging stations, a more rapid transition potentially leading to job losses for workers who build combustion engine vehicles, and raw materials constraints. Environmental advocates, on the other hand, pushed for the toughest possible standards, citing the urgency of the climate crisis.

The United Auto Workers expressed support for the final rule, and the Sierra Club said the “new clean car standards will save lives and money for families.”

The Alliance for Automotive Innovation, the auto industry’s top lobbying group, said in a statement that the standards are “still a stretch goal” but “should give the market and supply chains a chance to catch up.”