A looming vote in the U.S. House of Representatives could potentially reshape the future of the American automobile industry.
The Choice in Automobile Retail Sales (CARS) Act seeks to block pending Environmental Protection Agency (EPA) regulations and prohibit future federal mandates for electric vehicles.
The CARS Act, introduced by Reps. Tim Walberg (R-Mich.) and Andrew Clyde (R-Ga.) is set to be considered by the House Rules Committee on Monday. A full House vote could follow as soon as Tuesday. If passed, the bill would also need Senate approval, where similar legislation has been introduced by Republicans and Sen. Joe Manchin (D-W.Va.).
The legislation comes in response to EPA regulations that aim to mandate that 67% of new vehicles sold be electric by 2032. The regulations, part of President Biden's broader effort to combat climate change, have sparked controversy, with opponents arguing that they limit consumer choice and could harm the auto industry.
The proposed CARS Act would prohibit any future federal regulations mandating electric vehicle use or limiting vehicle availability by engine type. It would also require the EPA to update regulations limiting vehicles by engine type within two years if passed. Rep. Tim Walberg stated:
"The House must pass the Choice in Automobile Retail Sales Act to block a radical and unattainable federal EV mandate that will cripple our auto industry and forever make our supply chain reliant on China. The American auto industry is at its best when they are free to innovate and listen to the will of consumers and not constrained by bureaucracy."
Critics of the EPA's proposed regulations argue that electric vehicles are more costly, less efficient, and more reliant on Chinese supply chains than gas-powered vehicles. Energy industry groups who are supportive of the CARS Act echo these concerns.
According to Heather Reams of Citizens for Responsible Energy Solutions, "Aggressive, EV-only mandates take away consumer choice, stifle investment in alternate emission reduction opportunities, and benefit foreign adversaries like China with substantially more emission-intensive manufacturing than the United States."
These developments come amidst President Biden's goal of having 50% of new vehicle sales be electric by 2030, a target that would be significantly impacted if the CARS Act becomes law.
The National Highway Traffic Safety Administration has also proposed new fuel economy regulations. Automakers warn these could lead to high costs for consumers, further fueling the debate over the future of the American auto industry.
Rep. Walberg expressed concern about the potential impact on American families, stating,
"If this mandate goes into effect, many American families will be priced out of the market, and we will cede leadership of this industry to China. Instead, we must prioritize affordability, innovation, and freedom for each family to decide what car is best for them."
As the House prepares to vote, the future of the U.S. auto industry hangs in the balance, with potential repercussions for consumers, manufacturers, and the environment alike.