The Environmental Protection Agency (EPA) is considering a plan to radically boost electric vehicle sales in the U.S. beginning in 2030 and then accelerating in 2032, according to a report from The New York Times.
The EPA’s proposed rules would seek to ensure that 67% of all commercial passenger vehicles sold in the U.S. will be all-electric starting in 2032, sources told the Times. Last year, EVs made up just 5.8% of all vehicle sales.
“This is a massive undertaking,” said John Bozzella, president of the Alliance for Automotive Innovation, a lobbyist for U.S. and foreign automakers. “It is nothing short of a complete transformation of the automotive industrial base and the automotive market.”
Along with the unprecedented push for EV sales, the Biden administration is also expected to crack down on tailpipe emissions for cars made between 2027-2032, according to Bloomberg. The new rules on tailpipe emissions would apply to cars and light trucks and are expected to be officially announced in Detroit on Wednesday.
Last week, the White House released a fact sheet announcing investments for the car industry to get EV sales to make up half of all new vehicle sales by 2030. As part of Biden’s Inflation Reduction Act, which seeks “to bring a clean, safe, affordable, and reliable transportation future to Americans,” certain buyers receive tax credits for purchasing new and used EVs.
“These incentives complement investments from the Bipartisan Infrastructure Law and other federal initiatives that are spurring the domestic manufacturing of EVs and batteries and the development of a national EV charging network that provides access to low income and disadvantaged communities,” the White House said in a statement.
The new proposed EPA standards would push the U.S. to the front of the world for regulating carbon emissions, which the Biden administration argues is a leading factor in climate change. The European Union is phasing out all new gas-powered cars by 2035, and Canada and the U.K. have proposed similar gas-powered vehicle bans to the E.U., the Times reported.
As the federal government signals to continue with heavy regulations on the industry, car manufacturers have recently pushed to produce more EVs, but for some manufacturers, that push has initially resulted in massive losses. Last month, Ford projected it will lose $3 billion in 2023 as it pushes to produce more EVs and build electric battery plants in Kentucky, Tennessee, and Michigan.