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The Environmental Protection Agency is setting stricter limits on vehicle tailpipe emissions through 2032 and giving automakers an additional three years to meet them.

The Biden administration's plan to reach net-zero vehicle emissions came out almost a year ago. The auto industry's lower-than-expected profits are partly attributed to the compliance requirements for new electric vehicles under the previous EPA standards.

Matthew Davis, vice president of federal policy for the League of Conservation Voters, is optimistic about the new limits and said they line up with Michigan's goals as well.

"More than half of Michigander voters want the federal government to invest in facilities making zero-emission vehicles in their state," Davis reported.

Michigan manufactures one-third of the nation's batteries and is ranked by the Environmental Defense Fund as sixth in the nation for EV battery manufacturing employment.

Last month, Gov. Gretchen Whitmer launched the Battery and Advanced Manufacturing Challenge to secure federal infrastructure investment in Michigan, offering $125 million in matching grants to help win the federal clean energy projects.

Chris Harto, senior policy analyst for Consumer Reports, said strong standards and clean cars save drivers money as soon as they drive off the lot. He expects the vehicles to deliver over a trillion dollars in consumer savings, eliminate billions of tons of climate pollution and save thousands of lives. He added only the oil companies will be upset about the rules, since drivers will be making a lot fewer trips to the gas pump.

"We're going to see a mix of compliance strategies from different automakers, and I think we'll definitely see a lot more hybrids," Harto projected. "We did some analysis looking at the top 10 bestselling hybrids. Every single one of those delivers consumer savings in the first year of ownership when it's financed."

Greenhouse gas standards for both light-duty vehicles and medium-duty vehicles will phase in over a six-year period, from model year 2027 through model year 2032.