EPA Will Ease Pressure on Vehicle Emissions to Boost EV Adoption

The Environmental Protection Agency (EPA) is preparing its toughest emissions rules for new cars and light trucks in an effort to boost the production of electric vehicles.

Key TakeAways

• EPA rule changes will tighten emissions on new auto sales.
• The updated rules will be effective for 2027-2032 models.
• Experts say the proposed scheme will be a 'huge undertaking'. {alertSuccess}

The New York Times reported that the standards, which have not yet been completed, will affect vehicles made from 2027 to 2032. They are designed to drive the adoption of electric vehicles in the US to 67% of new auto sales by the end of that period.

According to the Alliance for Automotive Innovation, it's now about 10%.

"This is a massive undertaking," said John Bozzella, CEO of AAI. "This is nothing short of a complete transformation of the automotive industrial base and automotive market."

The push is part of the Biden administration's efforts to reduce pollution from transportation and electricity. Energy security and climate change were set for the biggest investments from the Inflation Reduction Act of 2022, with a wider range of tax credits available for clean energy sources and vehicles.

The EPA initiative follows updated rules on the electric vehicle tax credit issued this month by the Treasury Department and the Internal Revenue Service. To be eligible for the full credit, 50% of a vehicle's battery must be assembled or manufactured in the US, and 40% of the minerals in the vehicle's battery must be sourced from a country that has a free trade agreement with the United States .