U.S. to relax plans on car emissions standards

Sources say final limits won’t change but benchmarks for 2027 to ’29 will be lowered as sales of EVs stagnate

WASHINGTON — The Biden administration this week is expected to announce new automobile emissions standards that relax proposed tailpipe limits for three years but eventually reach the same strict standards set out by the Environmental Protection Agency.

The changes come as sales of zero-tailpipe emissions electric vehicles, which are needed to meet the standards, have begun to slow. The auto industry has cited lower sales growth in objecting to the EPA’s preferred standards unveiled last April as part of the most ambitious plan ever to cut planet-warming emissions from passenger vehicles.

The EPA suggested under its preferred alternative, the industry could meet the limits if 67% of new vehicle sales are electric by 2032.

But during a public comment period on the standards for 2027 through 2032, the auto industry called the benchmarks unworkable with EV sales slowing as consumers worry about cost, range and a lack of publicly available charging stations.

Three people with knowledge of the standards say the Biden EPA will pick an alternative that slows implementation from 2027 through 2029, but ramps up to reach the level the EPA preferred from 2030 to 2032. The alternative will have other unspecified modifications that help the auto industry meet the standards, one of the people said.

The people, two from the auto industry and one from the government, didn’t want to be identified because the new standards haven’t been made public by the EPA.

The changes appear aimed at addressing strong industry opposition to the accelerated ramp-up of EVs, along with public reluctance to fully embrace the new technology. There is also a legitimate threat of legal challenges before conservative courts.

The Supreme Court, with a 6-3 conservative majority, has increasingly reined in the powers of federal agencies, including the EPA, in recent years.

Biden has made fighting climate change a hallmark of his presidency and is seeking to slash carbon dioxide emissions from gasoline-powered vehicles, which make up the largest single source of U.S. greenhouse gas emissions.

At the same time, Biden needs cooperation from the auto industry and political support from auto workers, a key political voting bloc. The United Auto Workers union, which has endorsed Biden, has said it favors the transition to electric vehicles but wants to make sure jobs are preserved and that industry pays top wages to workers who build the EVs and batteries.

White House press secretary Karine Jean-Pierre said Tuesday that White House officials “don’t have any concerns” about the EPA rule, which could be announced as soon as Wednesday.

Generally, environmental groups have been optimistic about the new EPA plan.

Manish Bapna, president of Natural Resources Defense Council, told reporters last week he expects the rule will significantly cut carbon emissions from cars and light-duty trucks, which are the source of one-fifth of the nation’s greenhouse gas emissions.