On June 17, the Biden administration’s sweeping electric vehicle (EV) rule went into effect. The rule, according to the Environmental Protection Agency (EPA), “sets new, more protective standards to further reduce harmful air pollutant emissions from light-duty and medium-duty vehicles starting with model year 2027.” To meet the ‘tailpipe’ standards, auto makers will have to reduce tailpipe emissions over the next decade.
This rule is a modification of one released last year, which would “effectively require that fully electric cars account for about 60% of new-vehicle sales by the 2030 model year,” reported the Wall Street Journal. Instead, the EPA’s current proposal would require “an estimated 31% to 44%” of new light vehicle sales” to be electric.
A slower transition to electric vehicles helps automakers and auto unions prepare. The United Auto Workers union (UAW), in response to the new rule said, “the EPA has created a more feasible emissions rule that protects workers building ICE vehicles, while providing a path forward for automakers to implement the full range of automotive technologies to reduce emissions.”
Criticism of the Plan
Sterling Burnett, director of the Arthur B. Robinson Center on Climate and Environmental Policy at the Heartland Institute, told Drew Mariani that the rule is too economically sweeping. “If you’re going to have this kind of impact, it can’t be done through a rule. Congress must act.”
Slower Sales
Consumer demand for EVs has cooled in recent months despite governmental requirements and automaker commitments. For example, Ford “lost a staggering $4.7 billion last year on its battery-powered car business and projects an even bigger loss this year, in the range of $5 billion to $5.5 billion,” reported the Wall Street Journal.
Part of that consumer concern comes from the lack of charging stations in certain areas, or ‘range anxiety.’ Consumers are also concerned about “charging times, repair costs, and not having enough places to plug in” according to the Wall Street Journal.
To listen to Drew’s conversation about EV rules, click here.
