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Impatient! Biden has assigned new jobs to car companies

Written by / Zhang Ou

Edited / Tu Yanping

Design / Shi Yuchao

Source/Washington Daily By Timothy Puko & Katy Stech Ferek

On December 20, local time in the United States, the U.S. Environmental Protection Agency (EPA) issued new rules for greenhouse gas emissions from passenger cars and light trucks. Starting in 2023, using advances in clean car technology will bring $190 billion (1.2 trillion yuan) in net benefits to Americans, including reducing climate pollution, improving public health, and saving drivers on fuel.

Automakers must reach fleets of cars and light trucks that travel an average of 55 miles (88.5 kilometers) per gallon of fuel by 2026, higher than the 43 miles (69.2 kilometers) standard set by the Trump administration for that year. The current 2021 fleet mileage standard is 40 miles (64.3 km).

Greenhouse gas emissions

The EPA says higher standards will curb pollution from the transportation sector, which is the largest source of greenhouse gas emissions in the United States. In 2019, it accounted for 29 percent of U.S. greenhouse gas emissions, the largest source of carbon dioxide from fuel combustion, and more than emissions from power generation and industrial operations. Passenger cars and trucks are the largest players in the transportation sector, accounting for more than one-sixth of all emissions in the country.

According to federal data, the sector's carbon dioxide (the richest greenhouse gas) emissions have increased by 24 percent since 1990.

Based on the government's estimates of future fuel prices, the new rules will save all U.S. drivers $210 billion to $420 billion (1,338 billion to 2,676 billion yuan) in fuel costs by 2050, the EPA said.

Although the purchase price of clean vehicles will be higher, if the service life of the vehicle is measured, each user will still be able to save about $1,000 (6371 yuan) from 2026 onwards.

Speaking at the signing ceremony outside the EPA's headquarters, EPA Administrator Michael Regan said: "We are developing strong, rigorous standards that will actively reduce pollution that harms people and the planet, while also saving families money. ”

Impatient! Biden has assigned new jobs to car companies

rationality

Eric Mayne, a spokesman for Stellantis, argued that the EPA announcement "underscores the urgency of developing a set of complementary policies, including vehicle purchase incentives, manufacturing stimulus and the establishment of a nationwide charging infrastructure." Its purpose is to drive market shifts".

John Bozzella, president of the Automotive Innovation Alliance, which represents most consumers and automakers, called the program "positive." But to meet the standards, "there is no doubt that supportive government policies are needed — including consumer incentives, increased infrastructure, fleet requirements, and support for U.S. manufacturing and supply chain development." ”

The EPA said the standards released are the most ambitious greenhouse gas vehicle emissions standards ever set in the United States for the light vehicle division. They are based on sound science and based on a rigorous assessment of current and future technologies, and their supporting analysis shows that these criteria are achievable and affordable.

And, apparently, they believe that while these standards may seem time-critical, automakers have plenty of time to prepare and comply with them at a reasonable cost. The EPA's analysis suggests that manufacturers can comply with final standards and moderately increase the number of electric vehicles entering their fleets.

55 miles per gallon is actually equivalent to 40 miles per gallon in real-life stop-and-go driving.

It is expected that by 2026, the final standard can be reached if the sales volume of electric vehicles reaches around 17%, and the advanced gasoline engine and vehicle technology currently available is adopted more widely.

Impatient! Biden has assigned new jobs to car companies

viability

This approach limits the flexibility of car companies in how they account for emissions from their fleets. Theoretically, this could reduce pollution more quickly. But it also makes it harder for these companies to comply.

Automakers argue that tougher rules could raise upfront costs, thereby discouraging consumers from adopting zero-emission cars and trucks.

"For automakers, this is the future. If you want to stay competitive, you have to do it. Sierra club president Ramón Cruz said. The Sierra Club is the oldest and largest grassroots environmental organization in the United States.

Michael Reagan told reporters the analysis showed the industry could comply with the rules even without more federal funding from Congress. Environmentalists point to industry trends, saying they could move in that direction even if companies aren't satisfied with the exact scope of the new rules.

However, analysts at Deutsche Bank say U.S. consumer enthusiasm for electric vehicles has been slightly mild, and that sales of electric vehicles will account for 3% to 4% of new car sales this year.

And consumer anxiety about running out of power and the scarcity of charging stations are major barriers to widespread adoption of electric vehicles. Electric vehicles are typically more expensive than similar gasoline-powered models, and there are fewer models to choose from, although automakers are expanding their product ranges.

Impatient! Biden has assigned new jobs to car companies

Policies promote the electrification of transportation

Biden's new plan effectively reinstates the Obama administration's rules, which were loosened somewhat during the former President Trump era. The Trump-era rules will remain in effect until the 2022 model, but in the next year, the car fleet will have to improve efficiency by 9.8 percent. Thereafter, these standards will increase by 5 to 10 percent per year until 55 miles per gallon by 2026.

The goal of transportation electrification is already a global direction. The Biden administration's $1 trillion infrastructure bill this fall includes funding to deploy a national network of charging stations and subsidies to buy electric vehicles.

Atlas Public Policy, a Washington, D.C.-based research firm, said the $5 billion increase in spending is more than the total spending on charging infrastructure by government agencies, utilities and states to date.

It's worth mentioning that the infrastructure bill, signed earlier, could be facing failure — Senator Joe Manchin, who was the key swing vote, claimed last weekend that he would oppose the bill.

Biden's continued attempts to set stricter rules underscore the desire to push the United States to catch up with China, which is the world leader in batteries and electric vehicles, in terms of policy.

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