EPA Finalizes Tailpipe Emissions Rule
On Wednesday the Environmental Protection Agency (EPA) announced its final Multi-Pollutant Emissions Standards for Model Years 2027 and Later emissions regulation, which will effectively require as much as 56 percent of new cars and light trucks sold in the U.S. to be all-electric by 2032, with hybrids accounting for an additional 16 percent of sales. The final rule is slightly less stringent than the EPA’s initial proposal from last April which would have required 67% of new vehicle sales to be electric by 2032. In another change from the proposal, which excluded plug-in hybrids, the rule does not mandate a specific technology, allowing automakers more avenues to meet the requirements.
AIADA Reacts: Chairman Anthony Brownlee addressed the EPA’s finalized rule in his latest Chairman’s Blog.
Also this week, the Department of Energy softened its stance on the Petroleum-Equivalent Fuel Economy Calculation, which determines how electric vehicles are scored under Corporate Average Fuel Ecomomy (CAFE) standards, adding three years to the phase-in of the new rule, from 2027 to 2030, and cutting the PEF over that time from the proposed 72 percent to 65 percent. The change will allow automakers to build more gas vehicles through 2030 while still meeting CAFE requirements.
Take Action
The final EPA tailpipe regulation will require 56 percent of new vehicles sold be electric by 2032, with an additional 16 percent hybrid vehicle sales, and still does not take into account the reality of the marketplace, which dealers know all too well. Congress should continue to weigh in with the Biden Administration that time is needed for infrastructure to catch up with the ambitious targets, and that consumer choice must be protected.
China
This week, in a letter to Commerce Secretary Gina Raimondo, Rep. Jim Banks (R-Ind.) called on the Biden administration to launch a national security trade investigation that could lead to more tariffs on electric vehicles and components manufactured in China. Banks is the latest in a growing list of legislators urging additional tariffs on Chinese cars and parts. The Department of Commerce had previously announced an investigation into potential security risks of smart tech in cars.
Government Shutdown
The House of Representatives just approved a $1.2 trillion funding package to avert a partial government shutdown, acting in the nick of time before the deadline at midnight to keep government programs funded. The Senate is expected to consider the measure later today.
Quotes of the Week
“Unfortunately, the U.S. government has not laid the groundwork to make EVs appealing to the majority of the American public: those who lack access to charging stations, those who can’t afford the high price tag of EVs, and those whose long commutes make electric powered journeys too risky. Electric vehicles might be the clear choice for some drivers, but not for all drivers. And that’s why giving both the auto industry and consumers a long runway to meet these lofty new tail pipe emission goals is wise.”
-Anthony Brownlee, Chairman, AIADA (www.aiada.org)
"We received what we thought was persuasive information both from the OEMs, from the dealers, from labor, suggesting that the rule would be more durable if we provided the OEMs and the market a little bit more lead time.”
-Senior Administration Official (Automotive News)
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Burke Motor Group in New Jersey supported their local Middle Twp. Police Department by hosting a Coffee with Cops event with a warm breakfast for 75 members of their community. (h/t NJCAR)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
You Auto Know will be on hiatus for the next two weeks while Congress is out of session. We’ll be back the week of April 8 with all the news from Washington that You Auto Know about!
