Economic implications of new energy rules on electric and gas vehicles

A recent regulation revision by the Department of Energy could significantly impact the production of electric vehicles and the efficiency of gas-powered cars.

Jean Chemnick and Mike Lee report for E&E News.

In short:

The Department of Energy’s revision of the petroleum equivalency factor may decrease the estimated fuel economy for electric vehicles.
This change could compel manufacturers to reduce the production of less efficient gas-powered vehicles to meet fleetwide economy standards.
The interconnectedness of this rule with other upcoming regulations poses a challenge for carmakers, particularly those producing a broad range of vehicles.

Key quote:

“By maintaining the inflated PEF value [carmakers] are getting today as long as possible, it limits what they have to deploy under CAFE not just in terms of electric vehicle sales, but also in terms of fuel economy of their gasoline-powered vehicles."

— Dave Cooke, senior vehicles analyst at the nonprofit Union of Concerned Scientists

Why this matters:

The DOE's regulatory adjustments may weaken the progress towards greener transportation, directly influencing national efforts to reduce carbon emissions and move toward a sustainable future.

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