MW Biden's EPA rolls out regulation that aims to boost sales of EVs
By Victor Reklaitis
Regulation adjusted after lobbying from UAW, automakers and car dealers
President Joe Biden's administration on Wednesday released a much-anticipated final rule on tailpipe emissions for new passenger vehicles, putting forward a regulation that looks set to increase sales of electric vehicles while also making concessions sought by the United Auto Workers and other car-industry groups.
About a year ago, Biden's Environmental Protection Agency had floated an emissions rule that was projected to lead to fully electric vehicles making up 67% of U.S. sales of new autos by 2032.
The final regulation gives a variety of paths to achieve emissions goals for 2032, according to senior administration officials. There can be reliance on fully EVs, plug-in hybrid EVs, "strong hybrids" and improved internal-combustion engine vehicles, the officials said, and that came after carmakers, car dealers and labor leaders said the regulation would be more durable if it identified a variety of paths.
The UAW is a key ally for Biden as he looks set to face former President Donald Trump in this year's White House race. The union endorsed Biden's re-election bid in January. Trump and his fellow Republicans have blasted the Biden administration, describing the new EPA rule as an "EV mandate."
Biden's national climate adviser, Ali Zaidi, said in a statement that U.S. autoworkers are "making cars and trucks that give American drivers a choice - a way to get from point A to point B without having to fuel up at a gas station."
The share of U.S. car sales that are EVs is likely to be 8% in 2024, according to a recent Edmunds estimate.
EV pioneer Tesla's stock $(TSLA)$ was up 1% on Wednesday, while General Motors $(GM)$ and Ford $(F)$ were higher by about 2%, and Chrysler parent Stellantis $(STLA)$ added 0.4%.
Now read: The $7,500 federal EV tax credit is on the ballot in November
And see: Trump might deliver lower oil prices but 'mixed' performances for oil and gas stocks
-Victor Reklaitis
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March 20, 2024 11:31 ET (15:31 GMT)
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