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The Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) proposed a rule to adjust the corporate average fuel economy (CAFE) and greenhouse gas (GHG) emissions standards for model years (MYs) 2021 through 2026 light-duty vehicles. EPA established national GHG emissions standards under the Clean Air Act that extend through 2025, and NHTSA established augural CAFE standards for MY 2022-2025 vehicles under the Energy Policy and Conservation Act, as amended by the Energy Independence and Security Act (EISA). This joint rulemaking proposes adjustments to those standards, following conclusion of the Mid-Term Evaluation (MTE) process and EPA’s Final Determination that it is appropriate to adjust the MY 2022-2025 GHG emission standards.

Statement of Need:

Setting Corporate Average Fuel Economy standards for passenger cars, light trucks and medium-duty passenger vehicles will reduce fuel consumption, and will thereby improve U.S. energy independence and energy security, which has been a national objective since the first oil price shocks in the 1970s. Transportation accounts for about 70 percent of U.S. petroleum consumption, and light-duty vehicles account for about 60 percent of oil use in the U.S. transportation sector.

Summary of the Legal Basis:

This rulemaking responds to requirements of the Energy Independence and Security Act of 2007 (EISA), title 1, subtitle A, section 102, as it amends 49 U.S.C. section 32902, which was signed into law December 19, 2007. The statute requires that corporate average fuel economy standards be prescribed separately for passenger automobiles and non-passenger automobiles. For model years 2021 to 2030, the average fuel economy required to be attained by each fleet of passenger and non-passenger automobiles shall be the maximum feasible for each model year. The law requires the standards be set at least 18 months prior to the start of the model year.

Alternatives:

See the accompanying Regulatory Impact Analysis for the discussion of alternatives.

Anticipated Costs and Benefits:

See the accompanying Regulatory Impact Analysis for the discussion of estimated costs and benefits.

Risks:

The agency believes there are no substantial risks to this rulemaking.