EPA Carbon Pollution Standards for Cars and Light Trucks in Place Through 2025

Automakers on track to meet standards at lower than expected cost

WASHINGTON 11/30/2016; Based on extensive technical analysis that shows automakers are well positioned to meet greenhouse gas (GHG) emissions standards for model years 2022-2025, U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy today proposed leaving the standards in place, so the program that was established in 2012 will stay on track to nearly double fuel economy, dramatically cut carbon pollution, maintain regulatory certainty for a global industry, and save American drivers billions of dollars at the pump.

“Given the auto industry’s importance to American jobs and communities and the industry’s need for certainty well into the future, EPA has reanalyzed these clean car standards and sought further input,” said EPA Administrator Gina McCarthy. “It’s clear from the extensive technical record that this program will remain affordable and effective. This proposed decision reconfirms our confidence in the auto industry’s capacity to drive innovation and strengthen the American economy while saving drivers money at the pump and safeguarding our health, climate and environment.”

Today’s proposed determination is based on years of technical work, including an exhaustive technical report released earlier this year, and the agency’s thorough review and consideration of comments received on that report. This extensive body of analysis shows that manufacturers can meet the standards at similar or even a lower cost than what was anticipated in the 2012 rulemaking, and that the standards will deliver significant fuel savings for American consumers, as well as benefits to public health and welfare from reducing the pollution that contributes to climate change. Full implementation of the standards will cut about 6 billion metric tons of GHG emissions over the lifetimes of the vehicles sold in model years 2012-2025. Cars and light trucks are the largest source of GHG emissions in the U.S. transportation sector.

Although EPA’s technical analysis indicates that the standards could be strengthened for model years 2022-2025, proposing to leave the current standards in place provides greater certainty to the auto industry for product planning and engineering. This will enable long-term planning in the auto industry, while also benefiting consumers and the environment.

Today’s announcement builds on years of success under EPA’s vehicle emission standards. Auto manufacturers are innovating and adopting fuel economy technologies at unprecedented rates. Car makers have developed more technologies to reduce GHG emissions, and these technologies are entering the fleet faster than expected. These technologies include gasoline direct injection, more sophisticated transmissions, and stop-start systems that reduce idling fuel consumption. At the end of 2015, all large automakers were in compliance with the standards. In fact, automakers on average out-performed the model year 2015 standards by seven grams per mile. These gains are happening at a time when the car industry is thriving, and domestic vehicle sales have increased for six consecutive years, while maintaining consumer choice across a full range of vehicle sizes and types.

As part of the rulemaking establishing the model year 2017-2025 light-duty vehicle GHG standards, EPA committed to conduct a Midterm Evaluation of standards for model years 2022-2025. The public comment period for this action begins today and will end on December 30, 2016. After the comment period has ended and consideration of the input, the Administrator will decide whether she has enough information to make a final determination on the model year 2022-2025 standards.

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.

EXPERT'S COMMENTS

From Michelle Krebs, senior analyst for Autotrader:
“Undoubtedly, the 2025 fuel economy standards will be the subject of much discussion and negotiation with the new administration. What needs to be understood, however, is that automakers are global, and markets outside of the U.S. – as well as California – are demanding more fuel-efficient and lower-emitting vehicles. Automakers will still be on the hook to develop and produce these vehicles and will need economies of scale to make them profitable.”

From Rebecca Lindland, senior analyst for Kelley Blue Book:
“The emissions rules WERE strongly opposed by major manufacturers but many have said they already started development of technologies to meet the tough standards, so advocating for a reduction would not be a top priority. Also, California emissions overrides federal emissions, so the real challenge will be getting the California Air Resources Board to back off their Zero Emissions Vehicle mandate, which has a goal of 1.5 million zero emission vehicles on California roadways by 2025 (there are about 230,000 today) and the multi-state MOU signed in 2013 with seven other states committing to over 3 million ZEVs on the roads in these states by 2025. Even if the federal regulations are eased, without California and its cohorts following suit, I don’t know that it will be a “win” for the manufacturers.”

From Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book:
“The EPA’s 2025 emission rules will likely be one of the first tests of President-elect Trump’s vow to cut and modify regulations that are job-killers. With fuel prices low, carmakers are in the unenviable position of being required to sell vehicles that the public largely doesn’t want and, because of the increasing stringency of the emissions regulations, that position will grow more and more expensive for the automakers and, presumably, consumers over time. I expect that when he becomes President, Trump, his administration and Congress will re-visit the regulations to make them less onerous.”