EPA: Carbon Pollution Standards for Cars and Light Trucks to Remain Unchanged Through 2025

Standards offer savings for U.S. consumers; automakers can comply at lower than expected costs

WASHINGTON January 13, 29017; Today, EPA Administrator Gina McCarthy finalized her decision to maintain the current greenhouse gas (GHG) emissions standards for model years 2022-2025 cars and light trucks. The final determination finds that a wide variety of effective technologies are available to reduce GHG emissions from cars and light trucks, and that automakers are well positioned to meet the standards through model year 2025 at lower costs than predicted.

“My decision today rests on the technical record created by over eight years of research, hundreds of published reports including an independent review by the National Academy of Sciences, hundreds of stakeholder meetings, and multiple opportunities for the public and the industry to provide input,” said EPA Administrator Gina McCarthy. “At every step in the process the analysis has shown that the greenhouse gas emissions standards for cars and light trucks remain affordable and effective through 2025, and will save American drivers billions of dollars at the pump while protecting our health and the environment.”

The standards are projected to result in average fleet-wide consumer fuel economy sticker values of 36 miles per gallon (mpg) by model year 2025, 10 mpg higher than the current fleet average. Since the first year of the GHG standards, manufacturers have been developing and adopting fuel economy technologies at unprecedented rates. At the same time, the American car industry has been thriving. Since 2010, the industry has had seven consecutive years of sales growth, with 2016 setting a record high for vehicle sales. The Administrator is retaining the current standards to provide regulatory certainty for the auto industry despite a technical record that suggests the standards could be made more stringent.

Retaining the current standards preserves the significant cuts in harmful carbon pollution expected from the original standards, and provides regulatory certainty for this global industry that must meet similar standards in other markets including Canada and Europe.

The Midterm Evaluation process was established as a part of the 2012 final greenhouse gas emissions standards for model years 2017-2025. This decision follows the Proposed Determination issued by the EPA Administrator in November 2016, and the Draft Technical Assessment Report, issued jointly by the EPA, the National Highway Traffic Safety Administration (NHTSA), and the California Air Resources Board (CARB) in July 2016. The Administrator considered the extensive public input on both these documents in reaching her final determination.

For more information on today’s announcement, go to: https://www.epa.gov/regulations-emissions-vehicles-and-engines/midterm-evaluation-light-duty-vehicle-greenhouse-gas-ghg

Experts Comment

Michelle Krebs, senior analyst for Autotrader:
“While the federal standards will be challenging to meet, automakers need clarity and consistency of policy for long-term planning. California and the rest of the world have made clear they are sticking with demands for lower emissions, so automakers have to develop and produce these vehicles anyway.”

From Rebecca Lindland, senior analyst for Kelley Blue Book:
“The EPA’s move today is not a surprise. Frankly, if the EPA had backed away from their prosed standards, THAT would have been breaking news! While automakers would certainly welcome an easing of the standards, the reality is their product plans are already in motion; 2022 is tomorrow in automotive planning terms. On the consumer side, few shoppers are motivated by fuel economy alone – that’s why hybrids are consistently less than 3 percent of the market, regardless of fuel prices. The bigger challenge will be meeting the zero-emission mandate the state of California continues to enforce, but by meeting the California goal, automakers will likely meet the EPA’s goal.”

Brian Moody, executive editor for Autotrader:
“Automakers can meet the EPA’s requirements in emissions and miles per gallon, but the cost will likely be passed on to consumers. And that is something we need to watch. As the average car becomes more complex and compliance more expensive, the price will continue to increase, putting new-car ownership out of reach for many working class families – the kinds of families who often cannot afford to live near city centers where there are abundant jobs.”

Michael Harley, analyst for Kelley Blue Book:
“It’s no surprise that the EPA finalized its decision regarding greenhouse gas (GHG) emissions standards for model years 2022-2025. Automakers have been working towards these stringent environment-preserving requirements for some time, despite the fact that consumers only appear focused on horsepower and fuel efficiency.”