Automotive
The U.S. Environmental Protection Agency (EPA) proposed new federal vehicle emissions standards that will accelerate the ongoing transition to a clean vehicles future and tackle the climate crisis. The proposed standards would improve air quality for communities across the nation, especially communities that have borne the burden of polluted air. These proposals would avoid nearly 10 billion tons of CO2 emissions, equivalent to more than twice the total U.S. CO2 emissions in 2022, while saving thousands of dollars over the lives of the vehicles meeting these new standards and reduce America’s reliance on approximately 20 billion barrels of oil imports.
Since 2021, the number of EV sales has tripled while the number of available models has doubled. There are over 130,000 public chargers across the country – a 40 percent increase over 2020. The private sector has also committed more than $120 billion in domestic EV and battery investments since the Inflation Reduction Act was signed into law.
The new proposed emissions standards for light-, medium-, and heavy-duty vehicles for model year (MY) 2027 and beyond would significantly reduce climate and other harmful air pollution, unlocking significant benefits for public health, especially in communities that have borne the greatest burden of poor air quality. At the same time, the proposed standards would lower maintenance costs and deliver significant fuel savings for drivers and truck operators.
Through 2055, EPA projects that the proposed standards would avoid nearly 10 billion tons of CO2 emissions (equivalent to more than twice the total U.S. CO2 emissions in 2022). The proposed standards would reduce other harmful air pollution and lead to fewer premature deaths and serious health effects such as hospital admissions due to respiratory and cardiovascular illnesses.
By accelerating adoption of technologies that reduce fuel and maintenance costs alongside pollution, the proposed standards would save the average consumer $12,000 over the lifetime of a light-duty vehicle.
The proposals would reduce oil imports by approximately 20 billion barrels. Overall, EPA estimates that the benefits of the proposed standards would exceed costs by at least $1 trillion.
Light- and Medium-Duty Vehicle Proposed Standards
The first set of proposed standards, the “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium Duty Vehicles,” builds on EPA’s existing emissions standards for passenger cars and light trucks for MYs 2023 through 2026. The proposal retains the proven regulatory design of previous EPA standards for light-duty vehicles, but leverages advances in clean car technology to further reduce climate pollution and smog- and soot-forming emissions.
Between 2027 and 2055, the total projected net benefits of the light- and medium-duty proposal range from $850 billion to $1.6 trillion. The proposal is expected to avoid 7.3 billion tons of CO2 emissions through 2055, equivalent to eliminating all greenhouse gas emissions from the entire U.S. transportation sector for four years and would also deliver significant health benefits by reducing fine particulate.
Along with a broad suite of available emission control technologies, the standards are designed to allow manufacturers to meet performance-based standards however works best for vehicle fleets. EPA projects the industry standards are expected to drive widespread use of filters to reduce gasoline particulate matter emissions and spur greater deployment of CO2-reducing technologies for gasoline-powered vehicles.
These standards would also accelerate the transition to electric vehicles. Depending on the compliance pathways manufacturers select to meet the standards, EPA projects that EVs could account for 67 percent of new light-duty vehicle sales and 46 percent of new medium-duty vehicle sales in MY 2032. The proposed MY 2032 light-duty standards are projected to result in a 56 percent reduction in projected fleet average greenhouse gas emissions target levels compared to the existing MY 2026 standards. The proposed MY 2032 medium-duty vehicle standards would result in a 44 percent reduction compared to MY 2026 standards.
Heavy-duty Truck Proposed Standards
The second set of proposed standards announced – the “Greenhouse Gas Standards for Heavy-Duty Vehicles – Phase 3,” would apply to heavy-duty vocational vehicles (such as delivery trucks, refuse haulers or dump trucks, public utility trucks, transit, shuttle, school buses) and trucks typically used to haul freight. These standards would complement the criteria pollutant standards for MY 2027 and beyond heavy-duty vehicles that EPA finalized in December 2022 and represent the third phase of EPA’s Clean Trucks Plan.
These “Phase 3” greenhouse gas standards maintain the flexible structure the EPA previously designed through a robust stakeholder engagement process to reflect the diverse nature of the heavy-duty industry. The standards would enable manufacturers to achieve compliance efficiently, based on the composition of their fleets.
The projected net benefits of the heavy-duty proposal range from $180 billion to $320 billion. The proposal is projected to avoid 1.8 billion tons of CO2 through 2055, equivalent to eliminating all greenhouse gas emissions from the entire U.S. transportation sector for an entire year, and deliver additional health benefits by reducing other pollutants from these vehicles.
Investing in America’s Clean Transportation Future
The proposed standards align with commitments made by automakers and U.S. as they plan to accelerate clean
vehicle technologies in light- and medium-duty fleets in the next 10 to 15 years. Car and truck companies will also offer an increasing diversity of clean vehicles to consumers.
These developments are bolstered by investments in America, which provide unprecedented resources to support development for clean vehicle technologies and associated infrastructure and represent significant investment in expanding the manufacture, sale, and use of zero-emission vehicles. As these technologies advance, battery costs continue to decline and consumer interest in electric vehicles continues to grow. President Biden’s legislative accomplishments are also supporting critical generation of clean electricity and production of clean hydrogen needed to decarbonize transportation. EPA considered this rapid innovation in its assessment that tighter emissions standards are feasible.
EPA proposals are informed by robust and inclusive stakeholder engagement with industry, labor, advocates, and community leaders. The Proposals will be published in the Federal Register and available for public review and comment. The agency will continue to engage the public and all interested stakeholders as part of regulatory development.
Proposed Rule: Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3
Proposed Rule: Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles.