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Emissions Limits Could Increase Costs, Regulation

The Environmental Protection Agency’s new proposed rules limiting emissions for all vehicles could add unneeded regulation and costs for both manufacturers and consumers, the NAM said Wednesday.

What’s going on: On Tuesday, the EPA set forth two sets of draft pollution standards for cars—model years 2027 to 2032—that “would be the most aggressive emissions restrictions on the auto industry in U.S. history,” according to The Washington Post (subscription).

  • “Under the most aggressive proposal, automakers would have to cut emissions for the passenger cars and pickups they sell in model year 2032 by more than half from 2026, the last model year governed under current rules.”
  • The move is part of the Biden administration’s plan to ensure that by 2030 50% of car purchases are electric. It’s also a pillar of the president’s broader goal to reach economy-wide net-zero emissions by 2050.

What it would mean: The proposed rules “could add unnecessary costs into the manufacturing process and for consumers,” NAM Vice President of Energy and Resources Policy Brandon Farris said.

  • What’s more, aggressive regulation changes would necessitate complete overhauls of vehicle factories and supply chains, “a years-long process,” the Post reports.

“Further barriers”: EVs “are [also] still on average more expensive than gas-powered options. And with the United States trying to pull back supply chains from China and other countries since the pandemic, cost has become a bigger concern. … A lack of charging infrastructure and the risks of road-testing new technology are further barriers to consumer acceptance.”

Manufacturers leading the way: “Manufacturing in the United States is cleaner and more sustainable than ever thanks in large part to a revolution in how we produce, use and recycle energy,” Farris said.

  • “Auto manufacturers have been making historic investments to ensure that zero emissions vehicles will have a growing place in America’s garages for the foreseeable future. The NAM looks forward to working with the administration to ensure vehicle standards meet consumer demand while keeping manufacturers in the U.S. globally competitive.”
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