financetom
Business
financetom
/
Business
/
US eases tailpipe rules, slows EV transition through 2030
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US eases tailpipe rules, slows EV transition through 2030
Mar 20, 2024 8:54 AM

WASHINGTON (Reuters) - The Biden administration is unveiling final rules on Wednesday that make it easier for automakers to continue selling gas-powered models and slows the projected transition to electric vehicles through 2030.

The Environmental Protection Agency's (EPA) rule, which weakens yearly emissions targets through 2030 over the more stringent plan proposed in April 2023, is a win for Detroit automakers and other companies selling gas-powered models and plug-in hybrid vehicles.

The EPA said the plan cuts fleetwide tailpipe emissions by 50% over 2026 levels and reduces greenhouse gas emissions by 7.2 billion tons through 2055 and provide nearly $100 billion of annual net benefits, including $62 billion in reduced annual fuel, maintenance and repair costs.

The administration's decision to back away from the earlier proposal that would have in effect required 67% of vehicles sold in 2032 to be fully electric may disappoint voters who want the government to take more aggressive action to confront climate change.

Some environmental groups have already expressed dismay at signs the White House intended to soften the EPA tailpipe rules. Tesla, some Democrats in Congress and others had urged EPA to finalize even tougher rules.

The EPA's revised proposal reflects the political squeeze Biden faces in his re-election campaign. For both Biden and his Republican rival, Donald Trump, the road to the White House goes through Michigan and other industrial states such as Wisconsin and Pennsylvania where workers fear that the shift to electric vehicles could threaten jobs. Trump has repeatedly excoriated EVs.

'MULTIPLE CHOICES'

The EPA stressed automakers will have flexibility to choose among different technologies, including "advanced gasoline," hybrids, plug-in hybrids and fully electric vehicles.

"We designed the standards to be technology neutral and performance-based to give manufacturers the flexibility to choose which combination of pollution control technologies are best suited for their consumers," EPA Administrator Michael Regan told reporters. "There is absolutely no (electric vehicle) mandate -- there are multiple choices that the industry can make to comply with this technology standard."

"Let me be clear, our final rule delivers the same, if not more pollution reduction than we set out at proposal," he added.

The EPA did not immediately explain why a drastic reduction in forecasted EV adoption did not affect its projections for pollution reductions.

The change in the final rules reflects lobbying by automakers, car dealers and the United Auto Workers union that the standards should give the industry more latitude, rather than pushing for a rapid transition to an all-electric fleet.

The Alliance for Automotive Innovation, a trade group representing nearly all automakers except Tesla, said "moderating the pace of EV adoption in 2027, 2028, 2029 and 2030 was the right call because it prioritizes more reasonable electrification targets in the next few (very critical) years of the EV transition." It added that the rules preserve Americans "ability to choose the vehicle that's right for them."

The EPA in early 2023 projected EVs would account for 60% of new vehicles sold in 2030 and 67% by 2032 -- up from 8% in 2023.

Under the final rules, the EPA projects that from 2030-2032 EVs may account for about 30% to 56% of new passenger cars and trucks. The EPA yearly stringency targets accelerate in 2031 and 2032.

Automakers won separate relief on Tuesday when the Energy Department softened and opted to phase in new rules that will reduce the mileage rating of EVs. That will help the Detroit Three avoid billions of dollars in fines for not meeting fuel efficiency standards through 2032.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Qiagen Targets 7% Annual Sales Growth Through 2028
Qiagen Targets 7% Annual Sales Growth Through 2028
Jun 17, 2024
08:41 AM EDT, 06/17/2024 (MT Newswires) -- Qiagen ( QGEN ) said Monday it aims to achieve 7% annual sales growth until 2028 and targets a 31% adjusted operating income margin in 2028. The diagnostic services provider said it plans to streamline operations by focusing on key products like its PCR-based genetic testing machines, diagnostic tests for cancer and infectious...
Grifols' Biotest Gets FDA Approval for Yimmugo
Grifols' Biotest Gets FDA Approval for Yimmugo
Jun 17, 2024
08:41 AM EDT, 06/17/2024 (MT Newswires) -- Grifols ( GRFS ) said Monday its subsidiary Biotest received approval from the US Food and Drug Administration for Yimmugo, an antibody injection, to treat primary immunodeficiencies. Yimmugo is Biotest's first US-approved medicine and was developed using the company's new Next Level production facility, Grifols ( GRFS ) said. Price: 7.07, Change: +0.07,...
Vista says MNC Capital's likely pressure may have prompted bidder to pull offer for unit
Vista says MNC Capital's likely pressure may have prompted bidder to pull offer for unit
Jun 17, 2024
June 17 (Reuters) - Vista Outdoor ( VSTO ) said on Monday that possible pressure from investment firm MNC Capital might have forced one of the bidders for the company's sporting products business to drop its $2 billion offer. MNC's allegations that the bidder violated certain contractual agreements may have restricted the party's ability to make an offer for the...
Japan Pharma Giant Takeda's Anti-Seizure Treatment Flunks In Two Late-Stage Studies
Japan Pharma Giant Takeda's Anti-Seizure Treatment Flunks In Two Late-Stage Studies
Jun 17, 2024
Monday, Takeda Pharmaceutical Co Ltd ( TAK ) announced topline data from its SKYLINE and SKYWAY Phase 3 studies of Soticlestat (TAK-935). SKYLINE (TAK-935-3001) study evaluated soticlestat plus standard of care versus placebo plus standard of care in patients with refractory Dravet syndrome. Soticlestat narrowly missed the primary endpoint of reduction from baseline in convulsive seizure frequency compared to placebo...
Copyright 2023-2026 - www.financetom.com All Rights Reserved