EPA Rolling Back Emissions Requirements, Subsidies

The U.S. Environmental Protection Agency (EPA) has announced plans to reverse several vehicle emissions regulations established during the Biden administration, which were designed to promote electric vehicle (EV) adoption.

• Reevaluation of Passenger Vehicle Emissions Standards: The EPA intends to review the 2024 emissions standards that aimed to reduce passenger vehicle tailpipe emissions by nearly 50% by 2032 compared to projected 2027 levels. These standards anticipated that between 35% and 56% of new vehicle sales from 2030 to 2032 would be EVs.
• Reconsideration of Heavy-Duty Truck Emissions Regulations: The agency is also reassessing a 2022 rule that imposed emissions standards on heavy-duty trucks, which were 80% more stringent than previous limits. While the rule was projected to prevent up to 2,900 premature deaths annually and yield $29 billion in annual net benefits, critics argued it increased truck costs.
• Rescission of EV Sales Targets: The EPA plans to revoke the target set during the Biden administration, which aimed for at least 50% of new vehicles sold by 2030 to be electric.

These actions are part of a broader effort by the current administration to roll back EV-focused policies, reflecting a shift in the federal approach to vehicle emissions and electric vehicle adoption.