In a move aimed at appeasing labor unions and automakers in an election year, the Biden administration is set to slow down the rollout of a rule that mandates the transition to electric vehicles (EVs) in the United States. Sources revealed to the New York Times that the administration plans to relax limits on tailpipe emissions, giving manufacturers until after 2030 to significantly increase their sales of EVs, as opposed to the original goal of hitting near-term targets.

The Environmental Protection Agency had initially announced a rule in 2021, requiring nearly 70% of new car and truck sales to have no tailpipe emissions by 2032. Critics argued that the sudden shift would harm the U.S. auto industry. The newly proposed approach mandates automakers to transition nearly 70% of their new vehicle sales to emissions-free models by 2032 but offers a more gradual path to achieving this target before 2030.

President Joe Biden's need for support from key stakeholders has influenced this decision, especially as he seeks backing from labor unions and automakers during a crucial election period. The administration's pivot to a more lenient stance on EV targets follows concerns from autoworkers fearing job losses due to a rapid increase in EV production. Moreover, automakers are cautious due to lower-than-anticipated consumer demand for EVs.

Consumer hesitance towards EVs, attributed to factors such as the scarcity of nationwide charging stations and higher price tags, has also played a role in the administration's decision. Furthermore, the delay in reaching the set targets comes after automakers requested more time to address concerns such as reducing EV prices and expanding charging infrastructure nationwide. Autoworkers have also sought additional time to unionize in response to the burgeoning EV car plants in the Southern states.

The final version of the rule, aimed at easing pressure on automakers in the electric vehicle transition, is anticipated to be unveiled in the spring.