reducing carbon emissions

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would "protect communities by reducing carbon emissions." However, critics blasted the rule for increasing consumer costs amid high inflation.

"NHTSA’s new fuel economy standards will only add to the cost of new cars, depriving people of safe, affordable vehicles, at a time when they are already struggling," said Rep. Cathy McMorris Rodgers, R-Wash., the current chair of the Energy and Commerce Committee.

"It also enforces burdensome penalties on manufacturers—who are finding it difficult to keep up with high demand and inventory shortages as it is—which will only increase prices further as these ’penalties’ are passed along to the consumers."

EV tax credit provisions of the Inflation Reduction Act. Under the provisions, consumers will only be able to receive tax credits for EVs that are manufactured with a certain amount of critical minerals and components from the U.S. or nations the U.S. is in a free trade agreement with.

However, because the U.S. supply chain currently sources an outsized share of its critical minerals and EV battery components from China and other foreign nations, the rules will greatly restrict which EVs will ultimately be eligible for the tax credits. China currently boasts 78% of the world’s cell manufacturing capacity for EV batteries, according to a Brookings Institution analysis released in July.

A Biden administration official told reporters during a call on March 31 that they were unsure how many vehicles would actually be eligible for tax credits under its proposed rules.