Zac Quinn 
The current projection for adopting electric vehicles (EVs) has been on choppy water over the past few months, with potential changes taking place for government entities. However, other factors at play can affect government mandates. As demonstrated by recent advocacy from small businesses across the country that represent the specialty automotive aftermarket and other key stakeholders, they too can make a difference in regulations as the U.S. Environmental Protection Agency (EPA) is delaying its most aggressive tailpipe emissions reduction mandate.
EPA EV Sales Mandate Final Ruling: Details
The EPA’s final rule for tailpipe emissions reduction requirements has been pushed back from 2027 to model year 2030. The new rule also slightly increases the average tailpipe emissions for light-duty vehicles, increasing the standard to 85 grams/mile from 82 grams/mile for model year 2032. The agency’s final rulemaking provides automakers additional time to ramp up production of zero-emissions vehicles. Currently, only EVs and five plug-in hybrid electric vehicles (PHEV) meet the more accessible 85 grams/mile standard.
Current estimates state that 67% of new vehicles sold must be EVs by 2032 to meet this standard. Automakers could also comply with the latest ruling if EVs account for 56% of new vehicle sales and PHEVs comprise 13% of model year 2032 sales. Stellantis also released a statement with this new ruling, noting that while the final rule improves on the proposal by better reflecting the expected trajectory of market demand and enabling infrastructure, it’s still critical that future rules align with this proposal so manufacturers can effectively comply with a single set of rules rather than attempting to comply with multiple sets of rules at once.
The EPA’s final multipollutant regulation will significantly shift the automotive industry. Even with these changes, the rulemaking will adversely impact small, independent businesses, including aftermarket parts manufacturers, retailers, distributors, installers, and even local repair businesses. That said, it’s expected to face legal challenges as the final rule will reduce consumer choice and increase the costs of purchasing new vehicles. It will also disrupt the used car market as used ICE engine vehicle inventory will begin to decline, thus raising prices and making it less affordable for those who need a used vehicle market for its typical affordability and accessibility. Even now, we’re better off doing everything remotely possible to keep our current vehicles alive for as long as possible, as there are some callous times ahead.
