A plea from thousands of U.S. auto dealers for the federal government to ease up on electric vehicle mandates due to lack of consumer demand appears to have worked. The U.S. Environmental Protection Agency's recently finalized rule on tougher greenhouse gas emissions softens its stance a bit on EVs.
Under the finalized rule announced last week, the EPA now sees battery-electric vehicles at 30-56% of light-vehicle sales in 2030-32 model years, down from the controversial 67% in 2032 in its original proposal, according to Automotive News. The final national pollution standards for passenger cars, light-duty trucks, and medium-duty vehicles encompass model years 2027 through 2032 and beyond. In its press release, the EPA says it is finalizing this rule as sales of clean vehicles, including plug-in hybrid and fully electric vehicles, hit record highs last year.
Prior to the rule's finalization, thousands of U.S. auto dealers sent two separate letters to President Biden, urging him to put the brakes on the proposed Electric Vehicle mandate. The dealers essentially argued there just wasn't enough consumer interest in EVs.
Nearly 4,000 auto dealers signed the first letter last November, a move CarPro Show Host Jerry Reynolds applauded at the time, saying:
"Bravo to the Dealers who signed this letter to President Biden. They are saying many of the same things I’ve been saying on the CarPro Show for months now. The Federal Government should listen to this group of men and women since they are the people who really know where the market currently is and what people want to purchase with their hard-earned money. All the automakers have already begun to slow down producing electric vehicles. Let's just hope the administration listens." - Jerry Reynolds, Host of the CarPro Show
Over 5,000 auto dealers signed the second letter in January calling the proposed mandate "completely unrealistic". Responding to the EPA's final ruling, the group's statement on its website reads in part:
"On the positive side, the regulations have been softened in the early years from 2027-2030 in recognition of the slowing growth of EV sales.
However, the regulations still would require an increase in sales of electric vehicles that is far beyond the consumer interest we are experiencing at our dealerships. Despite generous government, manufacturer and dealer incentives, our customers continue to bypass EVs over concerns about affordability, charging infrastructure, performance in cold weather, and resale value. Worse still, the regulations spike in 2031-32 and revert to the unrealistic mandate that essentially requires that two-thirds of all vehicles sold be electric."
The EPA says the standards will avoid more than 7 billion tons of carbon emissions and provide nearly $100 billion of annual net benefits to society, including $13 billion of annual public health benefits due to improved air quality, and $62 billion in reduced annual fuel costs, and maintenance and repair costs for drivers. The EPA also says they deliver on the significant pollution reductions outlined in the proposed rule, while accelerating the adoption of cleaner vehicle technologies.
To see the entire EPA press release and read more reaction, click here.
Photo: President Joe Biden at the grand opening celebration at the GM Factory ZERO EV assembly plant Wednesday, November 17, 2021. Credit: GM.
