Biden to Ease Emissions Requirements and Slow EV Transition, Responding to OEM and Union Concerns

How can the United States strike a balance between environmental goals and industry capabilities while meeting consumer needs?

President Joe Biden is set to announce less stringent annual emissions requirements and a slower transition towards an all-electric vehicle fleet, in response to concerns raised by manufacturers and unions.

President Joe Biden is set to make an announcement that will ease the annual emissions requirements and slow down the transition towards an all-electric vehicle fleet in the United States. This decision comes as a response to concerns raised by manufacturers and unions about the affordability of EV technology and the need for more time to develop suitable charging infrastructure.

Last year, the US Environmental Protection Agency (USEPA) proposed a significant reduction of 56% in new vehicle emissions by the year 2032. The proposal required OEMs to aim for a 60% electric vehicle model mix by 2030 and 67% by 2032. However, the revised proposal, which is expected to be announced in March 2023, will lower the pace of the annual emissions requirements for the rest of the decade. According to Reuters, this new pace is likely to result in EVs accounting for less than 60% of the total vehicles produced by 2030.

This move is supported by the United Automobile Workers (UAW) and the Alliance for Automotive Innovation (AAI). The UAW believes that the USEPA proposal should be revised to increase stringency more gradually and occur over a greater period of time. Similarly, the AAI, which represents major automotive companies such as Ford, General Motors, and Toyota, called the initial proposal unreasonable and unachievable. They propose a lower rate, between 40% and 50%, of combined EV, HEV, and PHEV (plug-in hybrid electric vehicle) uptake instead.

John Bozzella, the CEO of AAI, emphasized the importance of giving the market and supply chains enough time to catch up. He also highlighted the need for more public charging stations, the impact of industrial credits and the Inflation Reduction Act, and the customer’s ability to choose. According to a USEPA spokesperson, the proposal is still under review, and a ruling that achieves reductions in air and climate pollution, while also ensuring economic benefits, will be finalized soon.

In addition to addressing concerns about emissions requirements, the USEPA is also expected to tackle other issues raised by OEMs. One of the concerns is the proposal to reduce particulate matter from petrol-powered vehicles, which would require the use of particulate filters. OEMs argue that this requirement would limit their access to certain engine technologies. Another point of contention is the USEPA plan to reduce the use of enrichment, a strategy that boosts performance and prevents engine damage. OEMs argue that this would further restrict their access to specific engine technologies.

Furthermore, OEMs have expressed their concerns about the Energy Department’s proposal to revise how petroleum-equivalent fuel economy ratings for electric vehicles are calculated. They fear that these changes would result in significantly higher fines for non-compliance with the Corporate Average Fuel Economy program.

The US Energy Department has already submitted its revised proposal to the White House for review, and an announcement on the outcomes is expected before the middle of this year.

• Biden’s announcement is a response to concerns over the cost of EV technology and the need for more time to develop charging infrastructure.
• The US Environmental Protection Agency (USEPA) proposed a 56% reduction in vehicle emissions by 2032 last year.
• The revised proposal is expected to result in EVs accounting for less than 60% of total vehicles produced by 2030.
• The United Automobile Workers (UAW) and the Alliance for Automotive Innovation (AAI) support the revised proposal.
• The USEPA is also addressing other concerns raised by OEMs, including particulate filters on petrol-powered vehicles and restrictions on certain engine technologies.
• The US Energy Department is also proposing changes to fuel economy ratings for electric vehicles.

President Biden’s decision to soften emissions requirements and slow down the transition to an all-electric vehicle fleet is a response to the concerns raised by manufacturers and unions. The revised proposal is expected to address the affordability of EV technology and the need for more time to develop charging infrastructure. The United Automobile Workers and the Alliance for Automotive Innovation support this decision. The USEPA is also addressing other concerns raised by OEMs, such as particulate filters and restrictions on certain engine technologies. The US Energy Department is proposing changes to fuel economy ratings for electric vehicles. These developments highlight the ongoing efforts to balance environmental goals with industry capabilities and consumer needs.