The U.S. Environmental Protection Agency (EPA) proposed on Wednesday the toughest-ever tailpipe emission standards for new cars and trucks, aiming to accelerate the adoption of electric vehicles to the point of EVs becoming a larger portion of new sales than conventional vehicles by 2032.
Depending on the compliance pathways manufacturers select to meet the proposed standards, EPA projects that EVs could account for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales for model year 2032.
The proposed MY 2032 light-duty standards are expected to result in a 56% reduction in projected fleet average greenhouse gas emissions target levels compared to the existing MY 2026 standards. The proposed MY 2032 medium-duty vehicle standards would result in a 44% reduction compared to MY 2026 standards, according to EPA's proposal.
The agency expects the proposals would reduce oil imports by approximately 20 billion barrels. Overall, EPA estimates that the benefits of the proposed standards would exceed costs by at least $1 trillion, the agency said.
"These ambitious standards are readily achievable thanks to President Biden's Investing in America agenda, which is already driving historic progress to build more American-made electric cars and secure America's global competitiveness," said EPA Administrator Michael S. Regan.
The Alliance for Automotive Innovation has warned that a massive rollout of EVs will depend not only on automakers but also on the grid and charging infrastructure investments.
"A lot has to go right for this massive - and unprecedented - change in our automotive market and industrial base to succeed," John Bozzella, head of the alliance, told Bloomberg.
Earlier this year, the Biden Administration announced actions to significantly expand the U.S. electric vehicle charger network to support its EV sales goals and back the Made-in-America manufacturing of components for charging stations. The set of actions is expected to help the Administration's EV sales goals by building a national network of 500,000 electric vehicle chargers along America's highways and in communities and have EVs make up at least 50% of new car sales by 2030.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More