In April, the federal Environmental Protection Agency (EPA) proposed new rules on electric vehicles (EVs) that would even make California regulators blush.   

• The EPA now effectively proposes that two-thirds of new cars and trucks sold starting in 2032 be zero emission.

NADA has branded the proposal “too far, too fast.”

• The overly aggressive proposal is opposed by NADA and the Alliance for Automotive Innovation – the trade group representing automobile manufacturers doing business in the United States. Notably, the Alliance has not opposed past iterations of EPA regulations, but is vociferously opposing the EPA’s current proposal.

NADA Advocacy on the Proposal
NADA’s entire advocacy staff has been very active in response to the EPA proposals. Advocacy initiatives include:

• May 2023
  • NADA published Dealerships On Track to Invest $5.5 Billion in EV Infrastructure, highlighting the huge investment dealers are spending to support the sales and service of EVs.
    • The investment figure has since been increased to $6B to include commercial truck dealers.
  • NADA Regulatory Affairs Committee Member Jeff Weber testified on the problems of the proposal, and submitted remarks for the record.
  • Former ATD chair Jodie Teuton testified on behalf of ATD regarding the EPA’s aggressive greenhouse gas emissions standards for heavy-duty commercial trucks. See Jodie’s testimony here.
• July 2023
  • NADA filed extensive comments in response to EPA’s proposal, focused on the vehicle demand side of the equation.
    • NADA stressed that new standards must account for factors such as vehicle affordability, consumer incentives, charging infrastructure, utility capacity, and model availability.
• September 2023
  • Reversing EPA’s “too far, too fast” approach is one of NADA’s Legislative Priorities.
  • During NADA’s Washington Conference Dealers and ATAEs began pressing Congress to correct EPA’s EV policy.
  • NADA urged Members of Congress to sign a letter led by Rep. Lisa McClain, which expressed strong opposition to “EPA’s misguided attempt” to push EVs before consumers are ready. The letter currently has 179 total signers (21 Senators, 158 Members of the House).   
• September-November 2023
  • NADA began advocating for the “Choice in Automobile Retail Sales (CARS) Act,” H.R. 4468/S. 3094, which permanently prohibits the EPA from finalizing its emissions proposal.
  • NADA held numerous in-person meetings with senior White House and EPA officials, voicing practical concerns about the impact of the proposed emissions regulation and providing data demonstrating why the regulations will actually slow, rather than accelerate, EV adoption. 
• October/November 2023
  • NADA influenced a front-page New York Times article about the realities confronting policymakers with EV tax credits.
  • NADA Director and Past Chairman Rhett Ricart was quoted as a Ford dealer on the front lines.
• November 2023
  • NADA and ATD jointly submitted a letter to House Republican leadership in support of the House Interior-Environment Appropriations bill (H.R. 4821), which would prevent the EPA from finalizing or implementing the unrealistic EV mandates for light-duty and medium- and heavy-duty trucks. The House passed H.R. 4821 on November 3.

The Reality on the Ground
The Biden Administration holds the unilateral power to finalize the EPA EV rule, so NADA has engaged directly with the White House for the past 14 months to bend the Administration’s policy in a more realistic direction.

• That said, Congressional action can influence the Biden Administration. Republicans are united in opposition to the EPA’s mandate and while Democrats are generally supportive, some Democrats have supported legislation to rein in EPA because of practical concerns about the EPA regulations – specifically a lack of an adequate and reliable charging infrastructure. These concerns could affect the stringency of the final rule as well as lay the groundwork for potential changes in 2025.

In the Media

• NADA is currently pushing an op-ed by President and CEO Mike Stanton that offers a better way forward – broad promotion and adoption of plug-in hybrids as an alternative to the EPA’s zero emission mandate.

Adding Cooks to the Kitchen
The EPA mandate does not just impact automotive – it will broadly impact the economy, from trucking, to farming, wholesale distribution and a variety of other industries. NADA is in the early stages of forming a coalition broader than the automotive industry to voice concerns about the mandate and the negative consequences it will have on the broader economy.

Want to Go Deeper? Read…

• EPA Proposal
• NADA Comments
• Automotive News summary of EPA proposal
• NADA Legislative Priorities

Questions?
Email us at publicaffairs@nada.org