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Auto Industry Group Presses EPA to Scrap Biden-Era Vehicle Emissions Limits as EV Incentives Near Lapse

Tesla urges the agency to preserve its climate authority, highlighting a split within the sector.

Overview

  • The Alliance for Automotive Innovation filed comments urging the EPA to rescind or substantially rewrite greenhouse-gas standards for model years 2027 and later, calling the targets unachievable under current conditions.
  • Automakers cited market softness, charging infrastructure gaps, supply chain constraints, and affordability challenges, pointing to recent policy changes as key obstacles.
  • The filing warns the $7,500 federal EV tax credit expires on September 30 and says many manufacturers could lose a battery production credit worth about $3,000 per vehicle per year next year under the new law.
  • The 2024 EPA rule seeks nearly a 50% cut in fleetwide CO2 by 2032 versus 2027 levels and anticipated 35% to 56% EV sales between 2030 and 2032.
  • In a separate filing, Tesla asked the EPA to retain the 2009 endangerment finding that underpins carbon rules, while the EPA has proposed rescinding it and Democrats and environmental groups have urged the agency to keep current protections.