Vehicle Fuel Economy and Greenhouse Gas Standards

On August 5, 2021, the Biden Administration proposed amendments to the federal standards that regulate fuel economy and greenhouse gas (GHG) emissions from new light-duty vehicles—a category that includes passenger cars and most sports utility vehicles, vans, and pickup trucks. These standards include the Corporate Average Fuel Economy (CAFE) standards promulgated by the National Highway Traffic Safety Administration (NHTSA) and the Light-Duty Vehicle GHG emission standards promulgated by the U.S. Environmental Protection Agency (EPA).

EPA finalized its amendments on December 30, 2021; NHTSA has not yet finalized its amendments. President Biden also signed Executive Order 14037, “Strengthening American Leadership in Clean Cars and Trucks” (86 Federal Register 43583), which requires EPA and NHTSA to begin work on future rule-makings for multi-pollutant and fuel efficiency standards for both light-duty vehicles and heavy-duty vehicles and engines that would take effect beginning in model year (MY) 2027, and sets a non-binding electrification goal that “50 percent of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles.” Some policymakers see these pending rule-makings as an opportunity to re-envision the goals and structures of the federal vehicle fuel economy and GHG emission program