WASHINGTON, April 12 (Reuters) – The U.S. Environmental Protection Agency (EPA) on Wednesday proposed emissions cuts from new cars and trucks through 2032, a move the agency says which could mean that two out of every three new vehicles sold by automakers will be electric within a decade.
The proposal, if finalized, represents the most aggressive plan to reduce U.S. vehicle emissions to date, requiring a 13 percent reduction in average annual pollution. The EPA is also proposing new, stricter emissions standards for medium- and heavy-duty trucks through 2032.
The EPA projects that the 2027-2032 model year rules would reduce CO2 emissions by more than 9 billion tons by 2055, equivalent to more than double the total US CO2 emissions last year.
The agency estimates the net benefits through 2055 of the proposal range from $850,000 to $1.6 trillion. In 2032, the proposal would cost about $1,200 per vehicle and manufacturer, but save an average owner more than $9,000 in fuel, maintenance and repair costs over an eight-year period.
“A lot needs to be done to make this massive and unprecedented change in our automotive market and our industrial base successful,” said John Bozzella, CEO of the Alliance for Automotive Innovation which represents General Motors (GM.N), Volkswagen (VOWG_p. DE), Toyota (7203.T) and others.
“Factors external to the vehicle, such as charging infrastructure, supply chains, grid resilience, availability of low-carbon fuels and critical minerals will determine whether EPA standards at these levels are achievable.”
The proposal is more ambitious than President Joe Biden’s 2021 goal, backed by automakers, which seeks to have 50 percent of new vehicles by 2030 be electric vehicles (EVs) or plug-in hybrids. Stellantis ( STLAM.MI ) said it was “surprised that none of the alternatives align with the president’s previously announced goal of 50 percent electric vehicles by 2030.”
The Biden administration is not proposing to ban gasoline-powered vehicles, but it wants feedback on whether it should extend emissions standards until 2035 and on other alternatives. Some environmental groups want the EPA to set tougher rules, especially on heavy trucks.
“These standards are very ambitious and continue the sense of urgency that the president and this administration have as we address the climate crisis,” EPA Administrator Michael Regan said in an interview with Reuters, declining to approve the ‘establishment of a date to end the sale of new petrol vehicles. He emphasized that the proposal is a “performance-based standard” and not an EV mandate.
Under the EPA proposal, automakers are expected to produce 60 percent of electric vehicles by 2030 and 67 percent by 2032 to meet the requirements, compared to just 5.8 percent of U.S. vehicles sold in 2022 that were electric vehicles.
California in August decided to require all new vehicles sold in the state by 2035 to be electric or plug-in hybrid electric, but they still need to apply for a waiver from the EPA to continue. Regan would not say how the EPA would react to a request from California. “We’re looking forward to it if it ever comes,” he said.
Dan Becker, director of the Safe Climate Transport Campaign, said the EPA’s proposal should have been tougher.
“Automakers are talking out of both sides of their tailpipes, promising electric vehicles while delivering mostly the same old gas guzzlers and pushing for weak, loopholed rules,” Becker said.
Under the proposal, the EPA estimates that 50% of new commercial vehicles such as buses and garbage trucks could be electric vehicles by 2032, along with 35% of new short-haul tractors and 25 % of new long haul tractors. Medium-duty vehicle standards are expected to reduce emissions by 44% by 2026.
Reporting by David Shepardson; Editing by Kenneth Maxwell
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