President Biden will soon propose fuel-economy and EV adoption targets that surpass targets set by his former boss, AP News reported Tuesday.
The proposed rules from the Environmental Protection Agency (EPA) and Department of Transportation (DOT) could be released as early as next week, according to the report, which cited four anonymous industry and government officials who have been briefed on the plan.
While those sources said the new rules hadn't been finalized, three said that, beginning with the 2023 model year, the federal government will base its standards on an existing agreement between California and five automakers—Ford, Volkswagen, Honda, BMW, and Volvo. That agreement calls for fuel-efficiency improvements of 3.7% per year.
Annual efficiency increases would ramp up to 5% in 2025, matching Obama-era targets, and could rise to 6% or 7% for the 2026 model year, the report said. That indicates Obama-era rules may not be restored for the period prior to 2025, but it seems federal fuel-economy targets could eventually exceed them under this plan.
2021 Ford Mustang Mach-E GT
Under the proposed rules, the EPA could call for 40% of new-vehicle sales to be electric by 2030, according to the report.
While the EPA and DOT haven't publicly responded to the report, EPA boss Michael Regan suggested earlier this spring that the new standards would be announced about now.
With the restoration of California's Clean Air Act waiver, there will still be two sets of vehicle emissions rules for the near future, but it appears based on this information they'll be in much better alignment.
California also aims for 80% EVs by 2035, tightens emissions rules, and places new requirements on plug-in hybrids. So the state may remain ahead of the rest of the nation in emissions-reduction plans for some time.