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In August 2021, President Biden signed an executive order, requiring the EPA to introduce fuel efficiency and emissions standards to "tackle the climate crisis." Months later, in a move reversing a Trump administration rule, the EPA finalized greenhouse gas emissions standards for vehicles made between 2023 and 2026, regulations the agency billed at the time as the "most ambitious" rules of their kind.
The proposal expected next week is set to be introduced as the Biden administration continues its aggressive push for more Americans to switch to EVs and to electrify home appliances in an effort to combat global warming. Biden set a goal shortly after taking office for half of all cars sold in the U.S. to be zero emissions by 2030 and has repeatedly visited EV manufacturing facilities.
"The future of the auto industry is electric," Biden remarked during a visit to a Ford EV center in Michigan early in his presidency. "There’s no turning back."
represented 93% of all new car sales in 2022, according to a recent report from the Alliance for Automotive Innovation. And EVs remain far more expensive and less efficient than alternatives.
Overall, the average cost of an EV was $64,338 while the average cost of a compact gas-powered car was $26,101 as of last year, according to Kelley Blue Book. In addition, the Department of Energy reported that the average range of model year 2021 gasoline vehicles was 403 miles compared to the median 234-mile range of model year 2021 EVs.
Last year, meanwhile, the National Highway Traffic Safety Administration (NHTSA) unveiled new fuel economy standards that it said would boost fuel efficiency, but acknowledged it would cost automakers about $236.5 billion and eventually make cars $1,000 more expensive. The standards are projected to increase fuel efficiency 8% annually for model years 2024-2025 and 10% annually for model year 2026.
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