EPA Announces Massive Deregulatory Action to Make Vehicles More Affordable

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The decision comes as auto companies have lost billions of dollars investing in manufacturing EVs, the agency said.

The Environmental Protection Agency (EPA) has proposed a deregulatory action to delay compliance deadlines for Biden-era emission standards, in a bid to make vehicles more affordable for Americans while ensuring greater consumer choice, the agency said in a May 14 statement.

In March 2024, the Biden-administered EPA issued new rules regarding tailpipe emissions applicable to light-duty and medium-duty vehicles for model years 2027 and beyond. The regulations sought to “significantly reduce” greenhouse gas emissions, nitrogen oxides, particulate matter, and hydrocarbons from new light trucks, passenger cars, and larger pickups and vans.

The changes were projected to help tackle what the Biden-era EPA called “climate crisis” and reduce air pollution after the agency set limits on gas emissions. For instance, in passenger cars, the greenhouse gas emission limit was set at 139 grams of carbon dioxide per mile, which should reduce to 73 grams by 2032.

These regulations were expected to bring down carbon dioxide emissions by 7.2 billion tons through 2055, with the EPA saying there would be almost $100 billion in annual net benefits to American citizens, including $62 billion in lower fuel costs and maintenance costs, and $13 billion in public health benefits due to better air quality.

At the time, the EPA said that the emission standards were expected to “accelerate the transition to clean vehicle technologies.”

Between model years 2030–2032, around 30–56 percent of new light-duty vehicles and roughly 20–32 percent of new medium-duty vehicles were projected to be battery-electric vehicles, the document said.

In its May 14 statement, EPA said it was proposing to delay the compliance deadlines for these standards by two more years, until the beginning of model year (MY) 2029, since U.S. citizens have “overwhelmingly rejected” electric vehicles. Moreover, auto manufacturers have lost billions of dollars investing in the production of these vehicles, the agency stated.

The emission standards were “based on faulty assumptions by the Biden Administration that EVs would make up a significant percentage of MY 2027 and beyond fleets, causing the administration to set unrealistic emission standards for internal combustion engine (ICE) vehicles,” the EPA said.

By Naveen Athrappully

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