The Environmental Protection Agency is giving automakers more flexibility to cut tailpipe emissions from light- and medium-duty vehicles than the agency proposed last year, allowing alternatives to electric vehicles, including plug-in hybrids, to reduce greenhouse gas reductions, starting with model year 2027.
“This technology-neutral, performance-based standard gives the auto industry the flexibility to choose the combination of pollution control technologies best suited for their customers,” EPA Administrator Michael Regan said at an event Wednesday. “Whether it's battery electric, plug-in hybrid, advanced hybrid or cleaner gasoline vehicles, we understand that consumer choice is paramount.”
“In this final rule, we identified a much more robust option for using plug-in electrics or marketing plug-in hybrid electrics, along with battery electrics as an option for [original equipment manufacturers] and consumers,” a senior administration official said on a call with reporters.
In the proposed rule released in April 2023, EPA estimated electric vehicles could account for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales by model year (MY) 2032.
EPA now projects that under the final standards announced Wednesday battery electric vehicles may account for 30% to 56% of new light duty sales for model years 2030-2032 and 20% to 32% of new medium-duty vehicle sales.
Despite the additional flexibility, ethanol industry supporters criticized the final regulations, saying EPA was relying too heavily on EVs to meet climate change goals.
“The plan still relies almost exclusively on the use of electric vehicles, requiring that a majority of the specified fleets are electric in less than a decade,” the National Corn Growers Association said. “A decision of this magnitude will have long-lasting negative implications for the rural economy because it ignores the benefits of ethanol.”
Growth Energy CEO Emily Skor said, “The final rule offers automakers some limited flexibility, but it fails to include any meaningful changes to ensure we’re not leaving biofuels on the sidelines.”
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In addition to reducing GHG emissions by 7.2 billion tons, EPA said the final standards will lower consumer costs. “Once fully phased in, the standards will save the average American driver an estimated $6,000 in reduced fuel and maintenance over the life of a vehicle,” the agency said in a press release.
The rule also will “provide nearly $100 billion of annual net benefits to society, including $13 billion of annual public health benefits due to improved air quality, and $62 billion in reduced annual fuel costs and maintenance and repair costs for drivers,” an EPA fact sheet said.
Environmental groups had varying opinions on the final rule. The Environmental Defense Fund applauded it, saying it would lead to cleaner air and increase jobs. “These clean car standards will supercharge economic expansion,” EDF Executive Director Amanda Leland said at the announcement.
But Dan Becker, director of the Center for Biological Diversity’s Safe Climate Transport Campaign, said the rule “could’ve been the biggest single step of any nation on climate, but the EPA caved to pressure from Big Auto, Big Oil and car dealers and riddled the plan with loopholes big enough to drive a Ford F150 through. The weaker rule means cars and pickups spew more pollution, oil companies keep socking consumers at the pump, and automakers keep wielding well-practiced delay tactics.”
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