US President Joe Biden speaks at the 2022 North American International Auto Show on September 14, 2022 in Detroit, Michigan.
Almond Ngan | AFP | Getty Images
The Environmental Protection Agency is preparing to announce significant tailpipe emissions limits this week, which would require up to 67% of new vehicles sold in the United States to be all-electric by 2032, according to a report by the New York Times on Saturday.
EPA Administrator Michael Regan is expected to make the announcement in Detroit on Wednesday. The proposed limits would be the most aggressive US climate regulation yet and would present automakers with a variety of challenges.
Under the proposed limits, electric cars will account for between 54% and 60% of new cars sold in the U.S. by 2030 and between 64% and 67% of new cars by 2032, the Times report says. Those numbers are ambitious, as according to a report by Cox Automotive, only 5.8% of cars sold in 2022 were electric, up from 3.2% in 2021.
Those limits would also surpass President Joe Biden’s previous goal of having around 50% of cars sold all-electric by 2030.
“As directed by the President in an executive order, the EPA is developing new standards that leverage this historic advance to accelerate the transition to a zero-emissions transportation future and protect people and the planet,” an EPA spokesman told CNBC in a statement . “Once the inter-agency review process is complete, the proposals will be signed, published in the Federal Register, and made available for public review and comment.”
The spokesman did not want to give specific information about the regulations.
Many automakers have already begun making significant investments in electric vehicles, but forcing adoption of the technology so quickly will pose challenges. A large number of pure electric cars will require an extensive charging infrastructure.
In February, the Biden administration said it wants to see at least 500,000 electric vehicle chargers on US roads by 2030 and announced a number of initiatives to help make that a reality, including pledges from companies that build and operate charging networks, like Tesla, General Motors, Ford, Charge Point
Ultimately, even if the infrastructure is in place, consumers must be willing to switch to electric vehicles, which means companies must also be able to maintain reasonable vehicle costs.