Electric car rules: What does the White House’s new proposal mean?

WHAT THE AUTO INDUSTRY IS SAYING:

John Bozzella, CEO of the Alliance for Automotive Innovation, a trade group representing Ford, General Motors and other automakers, called the EPA proposal “aggressive by any measure” and wrote in a statement that it exceeds the Biden administration’s 50% electric vehicle sales target for 2030 announced less than two years ago.

Reaching half was always a “stretch goal,” contingent on manufacturing incentives and tax credits to make EVs more affordable, he wrote.

“The question isn’t can this be done, it’s how fast can it be done,” Bozzella wrote. “How fast will depend almost exclusively on having the right policies and market conditions in place.”

European car maker Stellantis said officials were “surprised that none of the alternatives” proposed by EPA “align with the president’s previously announced target of 50% EVs by 2030.″

HOW THE CHANGES COULD BENEFIT THE ENVIRONMENT:

The proposed standards for light-duty cars and trucks are projected to result in a 56% reduction in projected greenhouse gas emissions compared with existing standards for model year 2026, the EPA said. The proposals would improve air quality for communities across the nation, avoiding nearly 10 billion tons of carbon dioxide emissions by 2055, more than twice the total U.S. CO2 emissions last year, the EPA said.

The plan also would save thousands of dollars over the lives of the vehicles sold and reduce U.S. reliance on approximately 20 billion barrels of oil imports, the agency said.

IS THE EPA PROPOSAL REALISTIC?

With electric vehicles accounting for just 7.2% of U.S. vehicle sales in the first quarter of this year, the industry has a long way to go to even approach the Biden administration’s targets. However, the percentage of EV sales is growing. Last year it was 5.8% of new vehicles sales.

Many auto industry analysts say it will be difficult for automakers to meet the projected sales percentage. The consulting firm LMC Automotive, for instance, said new EV sales could reach 49% in 2032 but are unlikely to go above that, citing high prices for EVs compared with gas-powered cars.