How New Federal Rule Could Impact EV Adoption

An adjustment to federal pollution limits will require a greater share of low-carbon vehicles, but the rule also gives automakers some flexibility in deploying electric and hybrid cars.

1 minute read

March 22, 2024, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


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fottoo / Adobe Stock

A new federal rule is “expected to drive a significant shift from gas-powered to electric vehicle (EV) sales,” according to a report by Rachel Frazin in The Hill.

While not explicitly mandating any particular fuel types, the rule tightens pollution standards, making them hard to achieve without a significant shift toward electric or other low-carbon vehicles. “Chris Harto, a senior policy analyst for transportation and energy at Consumer Reports, noted that since the rule is not a mandate, automakers will have at least some wiggle room to find the mix of technologies that best matches up with consumer demand.”

The rule could lead to a greater adoption of hybrid vehicles over all-electric cars. John Bozzella, president and CEO of Alliance for Automotive Innovation, an auto industry group, said in a press release, “These adjusted EV targets — still a stretch goal — should give the market and supply chains a chance to catch up. It buys some time for more public charging to come online, and the industrial incentives and policies of the Inflation Reduction Act to do their thing.”

Wednesday, March 20, 2024 in The Hill

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