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Electric Vehicle Expansion

The Environmental Protection Agency yesterday finalized rules that aim to limit tailpipe emissions from passenger cars and light trucks as part of a broader effort to transition the US to electric vehicles. 

The rules direct auto manufacturers to target a percentage of their new vehicle sales toward different types of electric vehicles, starting in 2027 and gradually increasing the targets through 2032 (see documents). The standards are performance-based, meaning auto manufacturers can decide which types of car technologies to invest in to reach the annually reduced emissions levels of their fleets. As a whole, electric vehicles accounted for 7.6% of new vehicle sales in the US in 2023.

The transportation industry is the largest source of US greenhouse gas emissions (see overview), representing 29% of emissions, with light-duty vehicles accounting for 58% of the transportation sources. The rules are expected to reduce US cumulative carbon dioxide emissions, which contribute to soot and smog, by 7.2 billion metric tons between 2027 and 2055. The figure is equivalent to a year's worth of all US greenhouse gas emissions.

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