On Wednesday, the Biden administration proposed ambitious auto emissions rules that could significantly change the types of cars and trucks for sale in the United States, but not immediately.
The regulations, if carried out, will effectively require automakers to replace fossil fuel cars with electric vehicles starting with cars by the 2027 model year as part of President Biden’s broader effort to address climate change. Ultimately, the administration wants two-thirds of all new cars sold in the country to be zero-emissions by 2032.
The proposal, put forward by the Environmental Protection Agency, is likely to speed up the transition to electric cars that is already underway. It’s also sure to create a lot of confusion for people who drive cars but don’t follow auto industry regulations and emissions closely.
What do the new fuel emissions rules mean for me as a driver and car buyer?
Even if adopted as proposed, the rules won’t have a major impact on consumers for at least a few years. The rules won’t require Americans to buy a new car or sell their current one, and car dealers will continue to sell models similar to the vehicles people are used to driving.
Things will start to change in 2027, when the government will start imposing stricter standards on car and truck emissions. Over time, automakers will discover that the only way they can comply with these stricter regulations is by selling more electric cars, which emit no tailpipe pollution, and fewer conventional combustion-engine cars.
Is it a good time to buy an electric car?
That depends on your circumstances.
For much of the past two decades, electric cars have tended to appeal only to wealthy early adopters or people strongly committed to protecting the environment. The vehicles available were often luxury models that cost much more than comparable gas-powered vehicles or were very small. Cars couldn’t travel very far before they needed a charge, and finding a place to plug them in could be incredibly difficult.
But a lot of that has changed recently. Tesla, Ford Motor, and other automakers have recently slashed prices on battery-powered models like the Model 3 and Mustang Mach-E, with some now costing less than, or close to, comparable gasoline-powered models. General Motors and other companies will introduce even cheaper models this year, like an electric Chevrolet Equinox sport utility vehicle that is expected to start at around $30,000. And many electric models can be comfortably driven for 200 miles or more before recharging.
Electric vehicles are generally cheaper to run because the electricity needed to run them tends to cost less than the equivalent amount of gasoline. They are also cheaper to maintain.
What is happening with federal tax credits for electric cars?
Electric cars assembled in the United States currently qualify for a $7,500 federal tax credit, but the rules governing those incentives will change Tuesday. A certain percentage of the components and minerals in vehicle batteries will have to come from North America or from countries with which the United States has a trade agreement.
Tesla, GM, Ford and other automakers have already said that some of their electric cars will no longer qualify for credits or will qualify only for a partial credit.
Electric vehicles assembled in Germany, Japan, South Korea and other countries will not be eligible. The government also limits eligibility based on how much a car, truck, or SUV costs and how much individuals and couples earn in a year.
I can’t find an electric vehicle that meets my needs. Are there other options?
Some people will probably conclude that an electric car is not right for them, for now. They may need a truck that can haul heavy loads and tow long distances, something today’s battery-powered trucks aren’t very good at. Or they may live in apartments or rental houses where they can’t install a dedicated EV charger and there aren’t many public chargers available nearby.
In such situations, you might consider hybrid or plug-in hybrid cars without making the full jump to an electric vehicle. Many car manufacturers offer hybrids, which have a combustion engine, a battery, and an electric motor. These cars tend to be more expensive than conventional vehicles, but owners can recoup that higher cost by saving fuel. How much you have to drive to get ahead will depend on the model.
One thing to keep in mind is that EV technology is changing rapidly and industry insiders believe that these cars will only get better and more affordable. So your best bet might be to stick with the car you drive for a couple more years until you see a battery-powered model that makes sense for you.
