Biden Administration To Drive Up Electric Car Sales 10X | China Benefits More Than The Environment

Biden Administration to Propose Strict New Auto Pollution Limits

The Biden administration plans to propose strict new automobile pollution limits this week that would require at least 54% of new vehicles sold in the U.S. to be electric by 2030 and as many as two of every three by 2032, according to industry and environmental officials briefed on the plan. Environmental groups are applauding the ambitious numbers, but the plan is likely to get strong pushback from the auto industry, which pledged in August 2021 to make EVs half of U.S. new car sales by 2030 as it moves toward a history-making transition away from internal combustion engines.

Even the low end of the EPA’s 2030 range is 4 percentage points higher than the 2021 goal, which came after strong pressure from President Joe Biden. 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 administration’s targets. However, the percentage of EV sales is growing. Last year it was 5.8% of new vehicles sales.

The EPA declined to offer details ahead of Wednesday’s announcement, but said in a statement that as directed by Biden’s order, it is “developing new standards that will ... accelerate the transition to a zero-emissions transportation future, protecting people and the planet.″

Supportive policies such as tax credits for EV purchases and funding of a nationwide network of charging stations are needed, according to the Alliance for Automotive Innovation, a trade association that includes Ford, General Motors and other automakers. EVs have to become more affordable, parts and domestic critical mineral supply chains have to be set up and utility generating capacity must be addressed, the statement said.

Environmental groups say stricter tailpipe pollution standards are needed, and provisions of the sweeping Inflation Reduction Act passed last year will help reach the tougher requirements. At present, many new EVs manufactured in North America are eligible for a $7,500 tax credit, while used EVs can get up to $4,000.