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By Coral Davenport

The New York Times

WASHINGTON>> The Biden administration is planning some of the most stringent auto pollution limits in the world, designed to ensure that all-electric cars make up as much as 67% of new passenger vehicles sold in the country by 2032, according to two people familiar with the matter.

That would represent a quantum leap for the United States — where just 5.8% of vehicles sold last year were all-electric — and would exceed President Joe Biden’s earlier ambitions to have all-electric cars account for half of those sold by 2030.

It would be the federal government’s most aggressive climate regulation and would propel the United States to the front of the global effort to slash greenhouse gases generated by cars, a major driver of climate change. The European Union has enacted vehicle emissions standards that are expected to phase out the sale of new gasoline-powered vehicles by 2035. Canada and Britain have proposed standards similar to the European model.

At the same time, the proposed regulation would pose a significant challenge for automakers. Nearly every major car company has invested heavily in electric vehicles, but few have committed to the levels envisioned by the Biden administration. And many have faced supply chain problems that have held up production. Even manufacturers that are enthusiastic about electric models are unsure whether consumers will buy enough of them to make up the majority of new car sales within a decade.

The action from the Environmental Protection Agency is likely to hearten climate activists, who are angry over the Biden administration’s recent decision to approve an enormous oil drilling project on federal land in Alaska. Some in the administration argue that speeding up a transition to renewable energy, with most Americans driving electric vehicles, would lessen demand for oil drilled in Alaska or elsewhere.

EPA Administrator Michael Regan is expected to announce the proposed limits on tailpipe emissions Wednesday in Detroit.

The requirements would be intended to ensure that electric cars represent 54% to 60% of all new cars sold in the United States by 2030, with that figure rising to 64% to 67% of new car sales by 2032, according to the people familiar with the details, who spoke on condition of anonymity because the information had not been made public.Rapidly speeding the adoption of electric vehicles would require significant changes, including the construction of millions of vehicle charging stations, an overhaul of electric grids to accommodate the power needs of those chargers and securing supplies of minerals and other materials needed for batteries.

The proposed regulation, which would go through a public comment period and could be altered by the government before becoming final, is sure to be met with legal challenges. It also could become an issue in the 2024 presidential campaign, as a future administration could undo or weaken it.

“This is a massive undertaking,” said John Bozzella, president of the Alliance for Automotive Innovation, which represents U.S. and foreign automakers. “It is nothing short of a complete transformation of the automotive industrial base and the automotive market.”

The new regulations would come on the heels of the 2022 Inflation Reduction Act, which has helped stoke demand for electric vehicles by providing up to $7,500 in tax incentives for car buyers as well as billions in incentives for battery manufacturing and critical mineral processing and mining.

Transportation is the largest source of greenhouse gases generated by the United States, the second-biggest polluter on the planet, behind China. Rapidly replacing gasoline-burning cars with electric models would help Biden achieve his pledge to cut the country’s emissions in half by 2030 and effectively eliminate them by the middle of the century.

The proposed rule would not mandate that electric vehicles make up a certain number or percentage of sales. Instead, it would require that automakers make sure the total number of vehicles they sell each year did not exceed a certain emissions limit. That limit would be so strict that it would force carmakers to ensure that two thirds of the vehicles they sold were all-electric by 2032, according to the people familiar with the matter.

Experts say the proposed regulation would synchronize federal action with a move by California to ban the sale of new gasoline-powered cars after 2035. Even manufacturers that chafe against regulations say that they would prefer to deal with one set of rules, rather than meet specifications from California that differ from federal requirements.

But plenty of hurdles remain for a smooth transition to electric vehicles. One of the biggest is the need for millions of electric vehicle charging stations. Experts say it will not be possible for electric vehicles to go from niche to mainstream without making electric charging stations as ubiquitous as corner gas stations. A 2021 infrastructure law provided $7.5 billion to build a network of about 500,000 charging stations along federal highways, but a January report from S&P Global concluded that millions were needed.

The transformation also could spell economic dislocation for American autoworkers, as electric vehicles require fewer than half as many laborers to build as gasoline-powered cars.

“We’ve dealt with the loss of jobs before through technology, but when you talk about the speed of this, it’s hard to fathom that we won’t lose jobs,” Mark DePaoli, a leader of United Auto Workers Local 600, said in a recent interview at the union headquarters near the Ford Rouge manufacturing plant in Dearborn, Michigan.

Job losses in the auto industry could have consequences for Biden, who will need voters in industrialized states such as Michigan and Ohio if he chooses to run for a second term.

 

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