EPA Rolls Out New Rules Revising EV and Plug-in Hybrid Requirements to Cut Emissions Through 2032

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The Biden administration released new rules that relax the amount and timeframe automakers need to roll out EVs to reduce emissions.

On Wednesday, administration officials announced what they call “the strongest-ever pollution standards for cars that position U.S. companies and workers to lead the clean vehicle future, protect public health, address the climate crisis and save drivers money.”

To that end, the EPA’s final pollution standards covering model years 2027 through 2032 aims to cut more than 7 billion tons of carbon emissions. By doing so, the agency claims that reduction will net $13 billion of annual public health benefits thanks to better air quality, and $62 billion in reduced annual fuel costs.

The new rule does, however, slow implementation of stricter standards from 2027 through 2029. Automakers cited untenable targets given the current state of the market — especially as the growth of EV sales slows down. More people bought electric cars and plug-in hybrids than ever last year, but the rate at which that growth is happening has plateaued through 2024 to-date, causing manufacturers to dramatically change their EV rollout plans to pivot toward hybrids as a halfway measure instead.

Under the new rule, the EPA says the automotive industry could meet the limits on greenhouse gas emissions if 56% of new vehicle sales are electric by 2032. On top of that, at least 13% of sales volume would need to comprise plugin hybrids or other electrified models. Naturally, gasoline vehicles will also have to get more efficient over the coming years to meet the targets.

“Let me be clear: Our final rule delivers the same, if not more, pollution reduction than we set out in our proposal,” EPA Administration Michael Regan said during today’s announcement. “The standards will slash over 7 billion tons of climate pollution, improve air quality in overburdened communities, and give drivers more clean vehicle choices while saving them money.”

After 2029, the new EPA rule ramps up to reach a similar level to what the agency previously proposed by 2032.