RIN Data

Statement of Need: EPA has found that emissions of greenhouse gases (GHGs) from new motor vehicles cause or contribute to pollution that may reasonably be anticipated to endanger public health and welfare. Light-duty vehicles emit four GHGs—carbon dioxide (CO2), methane (CH4), nitrous oxide (NOX), and hydrofluorocarbons (HFCs)–and are responsible for nearly 60 percent of all mobile-source GHGs. On May 21, 2010, the President called on the EPA and NHTSA, in close coordination with California, to begin the next phase of the National Clean Car Program and propose new standards for model years 2017 to 2025, in response to the urgent and closely intertwined challenges faced by our Nation of dependence on oil, energy security, and global climate change. This rulemaking would provide significant additional reductions in GHGs from future light-duty vehicles and fuel efficiency improvements.

Summary of the Legal Basis: The Clean Air Act section 202(a)(1) states that "The Administrator shall by regulation prescribe (and from time to time revise) in accordance with the provisions of this section, standards applicable to the emissions of any air pollutant from any class or classes of new motor vehicles or new motor vehicle engines, which in his judgment cause, or contribute to, air pollution, which may reasonably be anticipated to endanger public health or welfare." Section 202(a) covers light-duty vehicles. In April 2007, the Supreme Court found in Massachusetts v. EPA that greenhouse gases fit well within the Act's capacious definition of "air pollutant" and that EPA has statutory authority to regulate emission of such gases from new motor vehicles. Lastly, in December 2009, EPA published two findings (74 FR 66496) that emissions of GHGs from new motor vehicles and motor vehicle engines contribute to air pollution, and that the air pollution may reasonably be anticipated to endanger public health and welfare.

Alternatives: The rulemaking proposal includes an evaluation of regulatory alternatives that can be considered in addition to the Agency's primary proposal. In addition, the proposal includes tools such as averaging, banking, and trading of emissions credits and other flexibilities for alternative approaches for compliance with the proposed program.

Anticipated Costs and Benefits: The standards under consideration are projected to reduce GHGs by approximately 2 billion metric tons and save 4 billion barrels of oil over the lifetime of MY 2017 to 2025 vehicles. These standards would have significant benefits to American consumers by reducing the costs they would pay to fuel these more efficient vehicles.

Risks: The failure to set new GHG standards for light-duty vehicles would increase the risk of unacceptable climate change impacts.