Following the European Union's decision to ban the sale of new gasoline-powered vehicles starting in 2035, the U.S. Environmental Protection Agency (EPA) also proposed tightening vehicle emissions standards on April 12th, billing it as the most aggressive vehicle emissions reduction policy in the United States. This proposal covers all light-duty, medium-duty, and heavy-duty vehicles produced after 2027. While not banning the sale of new gasoline-powered vehicles, it is estimated that this will increase the proportion of electric vehicles in the vehicle fleet to approximately two-thirds by 2032.
The EPA held public hearings in early May. Foreign media reports indicate that the Biden administration is eager to finalize the new rules before the presidential election to avoid any changes to the plan. Former President Donald Trump relaxed vehicle fuel efficiency standards implemented by the Obama administration, only to reverse them after Biden took office.
No new fuel vehicle sales ban; all vehicle models are included
The EPA's proposed emission standards target carbon dioxide emissions from light- and medium-duty vehicles manufactured after 2027, as well as heavy-duty vocational vehicles (such as delivery trucks, garbage trucks, utility trucks, and school buses) and heavy-duty trucks. EPA Administrator Michael Regan called these the "most aggressive" pollution control standards for cars and trucks ever enacted. The EPA estimates that the two proposals combined will reduce carbon dioxide emissions by approximately 9 billion tons by 2055, more than double the total emissions in the United States in 2022. In addition to combating climate change and reducing the harm of air pollution, they will also reduce dependence on oil imports by approximately 20 billion barrels.
According to Reuters, the proposal mandates an average annual 13% reduction in pollution for new car models between 2027 and 2032. By 2032, average emissions must be reduced by 56% compared to 2026 levels. While the cost of manufacturing each vehicle is estimated to increase by $1,200, lower fuel and maintenance costs could save more than $9,000 over eight years.
Unlike Europe, the United States has not proposed a ban on the sale of new gasoline-powered vehicles. Instead, it has tightened standards to promote improvements in filter technology and CO2 emission reduction technologies. However, under pressure from tightening regulations, a significant shift in new car sales to electric vehicles is expected. The Environmental Protection Agency estimates that by 2032, electric light-duty vehicles will account for 67% of new car sales, while electric mid-duty vehicles will account for approximately 46% of the same class.
Electric vehicle support and the presidential election may become uncertainties
ENS reports that automakers already actively deploying electric vehicles welcome this policy. Between 2022 and 2026, Ford Motor Company will invest over $50 billion in the development and manufacturing of electric vehicles and batteries, aiming to produce 600,000 electric vehicles annually worldwide by 2023. General Motors (GM) also offers electric vehicles in sedans, SUVs, and pickup trucks. Amazon, FedEx, and Walmart have also announced purchases of all-electric mid-size trucks. Last year, electric vehicle sales in the United States accounted for only 5.8% of new car sales. This policy is expected to increase electric vehicle sales tenfold. However, next year's presidential election may be a major variable. Public hearings on both proposals will be held in early May, and Reagan expressed his hope for a final decision by 2024.
There are also concerns that supporting facilities such as charging stations, supply chains, power grids, and batteries will not keep up with regulations. The Environmental Protection Agency responded that since Biden took office, electric vehicle sales have tripled, the number of electric vehicle models has doubled, and there are now more than 130,000 public charging stations across the country, a 40% increase from 2020.
Source: Environmental Information Center (https://e-info.org.tw/node/236716)
