U.S. eases tailpipe rules, slows EV transition through 2030

WASHINGTON (Reuters) -- The Biden administration is unveiling final rules on Wednesday that make it easier for automakers to continue selling gas-powered models and slows the projected transition to electric vehicles through 2030.

The Environmental Protection Agency's rule, which weakens yearly emissions targets through 2030 over the more stringent plan proposed in April 2023, is a win for Detroit automakers and other companies selling gas-powered models and plug-in hybrid vehicles.

The EPA said the plan cuts fleetwide tailpipe emissions by 50% over 2026 levels and reduces greenhouse gas emissions by 7.2 billion tons through 2055 and provides nearly $100 billion of annual net benefits, including $62 billion in reduced annual fuel, maintenance and repair costs.

The administration's decision to back away from the earlier proposal that would have in effect required 67% of vehicles sold in 2032 to be fully electric may disappoint voters who want the government to take more aggressive action to confront climate change.

Some environmental groups have already expressed dismay at signs the White House intended to soften the EPA tailpipe rules. Tesla, some Democrats in Congress and others had urged EPA to finalize even tougher rules.

The EPA's revised proposal reflects the political squeeze Biden faces in his reelection campaign. For both Biden and his Republican rival, Donald Trump, the road to the White House goes through Michigan and other industrial states such as Wisconsin and Pennsylvania where workers fear that the shift to electric vehicles could threaten jobs. Trump has repeatedly excoriated EVs.

The EPA stressed automakers will have flexibility to choose among different technologies, including "advanced gasoline," hybrids,