Regulators are set to propose more stringent vehicle emissions rules by March of the 2024 calendar year. The new rules, as proposed by the Environmental Protection Agency (EPA), will affect vehicles between the 2027 model year through at least the 2030 model year.
Per a recent report from Reuters, which cites a regulatory update from the EPA released earlier in the week, the agency also said that it will propose and finalize new rules covering medium-duty vehicles around the same March timeframe.
Back in December, the EPA overturned a rollback on vehicle emissions rules enacted under President Trump affecting new light-duty vehicles through the 2026 model year. The EPA rules finalized in December require a fleet-wide average fuel consumption rate of 40 mpg by 2026, as opposed to 32 mpg under the Trump-era rollback. Looking ahead, President Biden has backed plans for 50 percent of all new vehicles sold by 2030 as electrified, including both fully electric models and plug-in hybrids.
The latest regulatory changes have led to questions as to how automakers will meet the new goals, especially with regard to the launch of new electric vehicles. The EPA estimates that the benefits of reducing vehicle emissions will outweigh the costs by upwards of $190 billion, with 17 percent of new U.S. vehicles being either all-electric or a plug-in hybrid by 2026.
Not everyone, however, is convinced. Earlier this year, ethanol producers sued to undue the mpg rule changes made in December, saying that they “effectively mandate the production and sale of electric cars rather than cars powered by internal combustion engines.”
Meanwhile, GM has boosted its investments into the development of new electric vehicle and autonomous vehicle technology to $35 billion by 2025. The General is also boosting its EV production capacity to 1 million units in North America by the end of 2025.