EPA Set to Clamp Down on Vehicle Emissions to Boost EV Adoption

The Environmental Protection Agency (EPA), aiming to boost the production of electric vehicles, is preparing its toughest emissions rules for new cars and light trucks.

The standards, which aren't yet complete, would affect vehicles made 2027 to 2032, the New York Times reported. They're designed to raise the adoption of electric vehicles in the U.S. to 67% of new auto sales by the end of that period. It stands at about 10% now, according to the Alliance for Automotive Innovation.

“This is a massive undertaking," said AAI CEO John Bozzella. "It is nothing short of a complete transformation of the automotive industrial base and the automotive market.”

The push is part of the Biden administration’s efforts to reduce pollution from transportation and electricity. Energy security and climate change were earmarked for the largest investments from the Inflation Reduction Act of 2022 with a wide range of tax credits available for cleaner energy sources and vehicles.

The EPA initiative follows updated rules on the electric vehicle tax credit, released this month by the Treasury Department and Internal Revenue Service. To be eligible for the full credit, 50% of a vehicle's battery must be assembled or manufactured in the U.S., and 40% of minerals in a vehicle's battery must be sourced from a country that has a free trade agreement with the United States.