The Biden administration is expected to relax its rules for the country's transition to electric vehicles (EVs), The New York Times first reported Saturday, citing three people familiar with the plan.
The change to the Environmental Protection Agency's (EPA) proposed rule would impose less stringent vehicle pollution requirements in the short term, effectively allowing automakers to run a smaller share of their fleet electric in 2030 than in the Biden administration's original proposal, the Times reported .
The rule change would be a win for automakers and unions because it would give the industry more time to ramp up its electric vehicle production and charging infrastructure before regulations spill over into the gas-powered vehicle market.
The electric vehicle market has grown in recent years, but not as quickly as some had expected. In 2023, more consumers turned to hybrid cars instead of fully electric vehicles. Sales of electric vehicles accounted for just 7 percent of the market last year, The Associated Press reported.
That pales in comparison to the Biden administration's future projections, which expect electric vehicles to account for up to two-thirds of sales by 2032. The Congressional Budget Office also increased its projected cost for the Inflation Reduction Act last week, citing a higher-than-expected number of Americans claiming electric vehicle tax credits.
A rule change could also ease the United Auto Workers union's political concerns about President Biden's re-election campaign. Last month, the union finally endorsed Biden after months of politically challenging the president and warning against switching to electric vehicles too quickly.
The EPA first proposed strict emissions standards last year that were so stringent that they would effectively force manufacturers to sell mostly zero-emission vehicles by 2030. House Republicans passed an attempt to repeal the rule in December, and car dealers also mounted massive opposition last month.
The Times reported that the Biden administration is expected to announce the change in the spring.
Updated at 8:05 p.m
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