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The Street
The Street
James Ochoa

EPA’s new, looser EV rules are still 'unrealistic,' auto dealers say

The Biden administration unveiled a series of new automotive regulations on March 19 that are a looser version of the initial tailpipe limits proposed last year, but are still not a big hit with some industry advocacy groups. 

Related: Mercedes-Benz recalls popular SUVs again for potential fire hazard

Drivers charge their Teslas in Fountain Valley, Calif.

MediaNews Group/Orange County Register via Getty Images/Getty Images

As per a report by the Associated Press, the final rulings set by the Environmental Protection Agency require the auto industry to sell at least 56% EVs within the total number of all new auto sales by 2032 – a figure reduced from two-thirds of total new auto sales last year. 

Additionally, the EPA is giving more leeway for gas-powered cars. The agency's new rules are also requiring the industry to have plug-in hybrids and other partially electric cars account for 13% of new car sales, while more fuel-efficient gas powered cars should account for a even larger chunk of new auto sales figures.

Despite the revised rules reflecting the auto industry's grievances about a slowdown in demand for battery-powered electric vehicles, the EPA maintains that there are many beneficial elements the rulings have on the environment and the climate.

2023 Toyota Prius Limited

Toyota

The agency says that the new regulations will help avoid more than 7 billion tons of carbon emissions over the next three decades and provide up to $100 billion in net benefits for the population. Without all this carbon in the air, the EPA says will result in lower healthcare spending, fewer fatalities, as well as more than $60 billion in reduced annual costs for fuel, maintenance and repairs.

“Let me be clear: Our final rule delivers the same, if not more, pollution reduction than we set out in our proposal,’' EPA Administrator Michael Regan said on March 19. In addition to carbon pollution, the final standards also will reduce other serious air pollution that contributes to heart attacks, respiratory illnesses, aggravated asthma and decreased lung function, Regan said.

Additionally, President Biden called the regulations "historic progress" on his goals to have zero emissions vehicles account for at least half of cars and trucks sold in the United States.

“We’ll meet my goal for 2030 and race forward in the years ahead,’' Biden said in a statement on March 19.

More Business of EVs:

Auto advocates are (still) not amused:

Infiniti vehicles outside an Infiniti dealership.

NurPhoto/Getty Images

Despite the theoretical compromise presented in the new rulings by the Environmental Protection Agency, advocates representing different facets of the automotive industry are still not amused in the slightest.

In a statement to TheStreet, EV Voice of the Consumer – the advocacy group representing nearly 5,000 auto dealerships across the United States said that while their letters to the Biden administration made an impact, the actions taken by the EPA are still not enough.

"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," the group said. 

"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."

David Leal installs a tailpipe on a vehicle at Muffler Pros in Hollywood, Fla.

Joe Raedle/Getty Images

However, the Specialty Equipment Market Association or SEMA – a group known to be staunchly opposed to any regulations that curtail emissions or make it harder to modify passenger cars, has welcomed the loosened rulings, but would like a compromise when it comes to keeping gas-burning, internal-combustion cars.

“The EPA has taken a small step in the right direction by providing automakers and specialty aftermarket businesses additional time to develop innovative solutions to reduce emissions," SEMA President and CEO Mike Spagnola said. 

"While I am proud of our industry’s role in helping to delay the EPA’s most aggressive EV mandates, there is still much work to do to get government regulators to embrace technology-neutral solutions that will reduce emissions while limiting adverse impacts on small businesses and consumer choice.”

Related: Veteran fund manager picks favorite stocks for 2024

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