Automakers get some breathing room in EPA air pollution rules

The Biden administration finalized environmental rules Wednesday that would speed the adoption of electric vehicles and drastically clamp down on the amount of carbon dioxide pollution that cars and light trucks can produce over the next eight years, albeit on a less ambitious schedule than originally proposed.

The Environmental Protection Agency opted to give automakers more time to slash their greenhouse gas emissions—in large part by switching to electric vehicles—amid concerns that its initial plans were too aggressive. The new rule increasingly lowers the amount of pollution allowed from tailpipes, starting off slowly and then picking up the pace as the 2032 vehicle model year approaches. It will give manufacturers more time to phase in electric and hybrid vehicles through 2030.

“EPA is finalizing the same standard proposed for [model year] 2032 while allowing additional time for the auto sector to scale up clean vehicle manufacturing supply chains in the first three years covered by the rule,” the agency said in a release.

The administration’s conciliatory move comes as President Joe Biden faces political and legal headwinds in his efforts to combat climate change.

As Biden winds down his first term in office, he is set for a rematch with former President Donald Trump in this November’s election, and Trump has been openly hostile about the industry shift to electric vehicles. Last weekend, Trump suggested that automakers would not be able to sell those cars and that there would be a “bloodbath for the country” if he didn’t get elected to stop it. Meanwhile, a conservative majority of the U.S. Supreme Court has drastically scaled back federal regulatory power, particularly on environmental issues. And Republican attorneys general, who have sued the administration on dozens of issues, warned the EPA against rolling out more aggressive tailpipe emission standards.

In April, the EPA released a proposal that would have effectively required two-thirds of new vehicles sold in the country by 2032 to be electric. But legacy automakers balked at the EPA’s aggressive timeline, which could have posed problems for Biden’s efforts to make the switch if they sued to block the new rules or otherwise hampered their rollout.

For now, though, the traditional automakers praised the EPA for allowing a slower rollout.

“The future is electric,” said John Bozzella, president and CEO of the Alliance for Automotive Innovation, an industry group that includes most companies that sell gas-burning cars in the U.S. “But pace matters. Moderating the pace of EV adoption … was the right call because it prioritizes more reasonable electrification targets in the next few (very critical) years of the EV transition.”

“These adjusted EV targets—still a stretch goal—should give the market and supply chains a chance to catch up. It buys some time for more public charging to come online, and the industrial incentives and policies of the Inflation Reduction Act to do their thing,” he added.

Ceres, an industry group that represents all-electric vehicle makers like Tesla and Rivian, also supported the new rule.

“While the standards announced today do not meet the most aggressive timeline of the EPA’s original proposal, which Ceres supported, they represent an ambitious and durable advancement that meets the needs of manufacturers, fleet owners, workers and consumers,” the group wrote. “The new standards will still dramatically reduce emissions from transportation, the nation’s leading source of climate pollution.”

The revisions could also placate auto unions, a major political constituency for Biden. Skepticism about EVs was one of the factors that led the United Auto Workers to strike against GM, Ford and Stellantis last fall, as employees worried that they would lose their jobs during the switch to the new technology. Biden expressed solidarity with the workers and even joined them on the picket line. The UAW recently endorsed the Democratic president in this year’s election.

The auto union also praised the EPA rules in the federal agency’s announcement.

“By taking seriously the concerns of workers and communities, the EPA has come a long way to create a more feasible emissions rule that protects workers building [internal combustion engine] vehicles, while providing a path forward for automakers to implement the full range of automotive technologies to reduce emissions,” the group said.

Automakers sold a record 1.2 million electric vehicles in 2023, and hybrid electric vehicles have become more popular, too. But several auto manufacturers have scaled back their EV plans for the coming years, as they deal with manufacturing problems, supply chain issues, price wars with each other and consumer hesitation.

“While records were set, the oft-reported slowdown is real,” reported Kelley Blue Book in January. “[Fourth quarter] EV sales increased year over year by 40%—a strong result by any measure, except when compared to the growth the industry saw in previous quarters [when growth topped 50%] … The EV market in the U.S. is still growing, but not growing as fast.”

Many critics of the Biden administration’s EV push have seized on that slowdown to argue that the EPA’s milestones are unrealistic.

“The Biden administration’s revised standard responds to a slowdown in sales as Americans realize not just the cost and unreliability of electric vehicles, but also the dirty truth behind this supposedly ‘clean’ technology,” said U.S. Sen. Deb Fischer, a Nebraska Republican, referring to the resource-intense process of mining for minerals needed in EV batteries. “Instead of delaying these standards, President Biden should abandon this attempt to appease climate activists and allow the market to take its course. More practical, market-driven changes—like allowing the year-round sale of E15 ethanol—would help achieve environmental goals for America’s vehicle fleet.”

But local leaders who are concerned about the effects of climate change welcomed the Biden administration’s new rule.

“The EPA standards are a step in the right direction toward achieving progress in the green transition and improving air quality in communities,” said Kate Wright, the executive director of the Climate Mayors. “Many cities are taking ambitious steps toward decarbonizing our transportation systems, and with support from the Biden administration, we can continue to build on crucial local momentum and deliver for generations to come.”