EPA Proposes New Emission Standards, Fueling Transition From Gas To Electric

The Biden administration is proposing strict new automobile pollution limits that would hasten the nation's transition from gasoline-powered cars and trucks to electric vehicles, a change that could ultimately lessen the value of Oklahoma's legacy oil and gas industry, while also rewarding the state's recent efforts to be in a position to help drive the switch battery-powered vehicles.

The proposed regulation, announced Wednesday by the Environmental Protection Agency, would set tailpipe emissions limits that EPA estimates could only be met if up to two-thirds of new vehicles sold in the U.S. are electric by 2032, a nearly tenfold increase over current EV sales.

EPA Administrator Michael Regan called the proposal “the most ambitious pollution standards ever for cars and trucks,″ and he said it would reduce dangerous air and climate pollution and lower fuel and maintenance costs for families.

"We’re trying to make sure that America leads the EV revolution," said Transportation Secretary Pete Buttigieg in an interview. "There’s a lot of competition for this -- China has made massive investments to try to corner the market on these [vehicles], and we’ve got to make sure that the leadership comes from right here on American soil and that it’s creating American jobs."

Secretary Buttigieg cites two reasons that America needs to lead in this transition: first, from an environmental standpoint, to lead the way in lowering carbon emissions and mitigating climate change, and second, from an economic standpoint, to beat out China.

"[China isn't] betting electric because they’re big environmentalists," said Buttigieg, "they’re doing it because they know that there’s a strategic advantage in doing that, and we cannot allow them to outpace the United States when it comes to the future of auto manufacturing."

He says targeted tax breaks and subsidies are helping jump-start fledgling businesses across the country.

"In Oklahoma, you’ve got a company called Canoo, just to name one example, announcing about 700 advanced jobs there," Buttigieg said, referring to the electric vehicle manufacturer's recent announcement that it will expand its Oklahoma presence to include new R&D, software development, customer support, and financing centers.

Related Story: Canoo Acquires Property In Oklahoma City

The state is also getting $66 million from the Bipartisan Infrastructure Law to help companies that want to get in on the buildout of a nationwide EV charging network.

"The president's vision is half a million chargers across the country," said Buttigieg, "we are well on our way to that but there’s a lot of work to do."

But that's precisely the reason that some critics say the new standards would be a mistake -- not only are people not ready to change, they say, but the infrastructure isn't ready.

In a statement Wednesday, the American Petroleum Institute said, “This deeply flawed proposal is a major step toward a ban on the vehicles Americans rely on. As proposed, this rule will hurt consumers with higher costs and greater reliance on unstable foreign supply chains.”

Automakers are also expected to argue for changes to the proposed standards during the upcoming public comment period. They're already moving toward increased EV sales, but the timeline envisioned with the EPA proposal exceeds their plans.

The agency will take public feedback and then select from a range of options after the public comment period. The rule is expected to become final next year.