The U.S. Environmental Protection Agency (EPA) announced on Wednesday that it is starting the process to reverse dozens of Biden administration rules, including vehicle emissions standards.
What Happened: The EPA revealed its intention to reassess the 2024 regulations that sought to cut passenger vehicle emissions by nearly 50% by 2032. These regulations projected that between 35% to 56% of new vehicles sold from 2030 to 2032 must be electric, a standard supported by Ford Motor Co. (NYSE:F).
Moreover, the EPA is reviewing a 2022 regulation concerning emissions from heavy-duty trucks, citing increased costs as a concern. The 2022 standards were significantly stricter than previous ones, with potential benefits such as fewer premature deaths and reduced school absences.
SEE ALSO: Elon Musk Says Tesla Will Double US Production in 2 Years After Trump Backs EV Giant Amid Stock Slump
The EPA has also submitted the Biden administration’s approval of California’s plan to phase out gasoline-only vehicles by 2035 for congressional review. At the same time, Congress is considering repealing EV tax credits.
In January, Transportation Secretary Sean Duffy began rescinding Biden-era fuel economy standards and halted state funding for EV charging infrastructure.
Why It Matters: The Trump administration’s decision to reverse Biden’s vehicle emissions standards is part of a broader strategy that includes revoking Biden’s executive order targeting 50% electric vehicle adoption by 2030.
Furthermore, the potential repeal of the $7,500 EV tax credits could be detrimental to Tesla’s competitors while potentially benefiting Tesla Inc. (NASDAQ:TSLA) as per Elon Musk.
The executive order signed by President Trump, known as “Unleashing American Energy,” underscores the administration’s focus on altering the trajectory set by the previous administration.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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