USEPA Adopts Strong Emission Performance Standards for Autos and Light/Medium-Duty Vehicles In New Rule

On March 20, 2024, the U.S. Environmental Protection Agency (USEPA) announced the adoption of strong new emissions standards in a new rule for vehicles in model years 2027 through 2032 and beyond. The new standards aim to accelerate the adoption of cleaner technology vehicles and to deliver environmental and economic benefits for Americans. The USEPA reports the new standards will avoid more than 7 billion tons of carbon emissions and yield $99 billion of annual net benefits, including $13 billion of yearly public health benefits from improved air quality, and $62 billion in reduced fuel and maintenance/repair costs for motorists each year. The CO2 emissions reductions through 2055 are equivalent to approximately four times the emissions of the entire transportation sector in 2021.

The final rule was adopted following a contentious public comment period, resulting in substantive revisions to originally proposed timelines and increased flexibility for automakers. The original EPA proposal required that companies cut emissions consistently each year. But the final rule changed the timeline to place the steepest cuts after 2030. EPA's final rule also gives manufacturers flexibility to reduce emissions and meet the standards through a mix of technologies that they decide is best for their companies and their customers. EPA's rule allows consumers to enjoy a variety of vehicle choices, including gasoline-powered vehicles, hybrids, plug-in hybrid electric vehicles, and full battery electric vehicles.

Federal agencies have been working to enact regulations expeditiously in advance of the November 2024 elections. A new Congress can roll back regulations completed in the last 60 legislative days of a session, so the Biden administration has been mindful to advance rules that stay clear of this deadline.

Overall, with the schedule changes and added flexibility in the rule, it received endorsements from the auto labor unions and automakers. But Democrats from energy producing states and many Republicans in Congress have argued that the federal government has no authority to mandate the type of vehicle American consumers may purchase. They also claim the new rule will worsen supply chain concerns by creating more dependence on China for key electric vehicle materials.

The rule's relaxed schedule for the most stringent emissions reductions provides a window for road operators and their partners to deploy more vehicle charging stations to accommodate the likely increase in electric vehicles. IBTTA remains committed to working with Federal and State partners and our membership to support emissions reduction efforts as part of our Sustainability and Resilience Framework.

The USEPA rule can be found here:

https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rul...