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On August 24, 2018, the Environmental Protection Agency (EPA) and the Department of Transportation's National Highway Traffic Safety Administration (NHTSA) jointly published in the Federal Register a notice of proposed rulemaking entitled, "The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 20212026 Passenger Cars and Light Trucks." In the NPRM, the agencies proposed new greenhouse gas (GHG) and Corporate Average Fuel Economy (CAFE) standards for model year 2021 to 2026 light duty vehicles. EPA also proposed to withdraw the waiver it had previously provided to California for that State's GHG and ZEV programs under section 209 of the Clean Air Act, while NHTSA proposed regulatory text that made clear that those State programs would also be preempted under NHTSA's authorities. In the finalized Part One action, the agencies finalized the two actions related to the waiver and preemption. Accordingly: (1) EPA announced its decision to withdraw the waiver; and (2) NHTSA finalized regulatory text related to preemption. The agencies anticipate issuing a Part Two final rule on the standards proposed in the NPRM in the near future.

Statement of Need:

Setting Corporate Average Fuel Economy standards passenger cars, light truck, 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 would respond 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 on 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 for 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:

EPA will present regulatory alternatives in the upcoming final rule.

Anticipated Costs and Benefits:

EPA will present estimated costs and benefits in the upcoming final rule.

Risks:

The Agency believes no substantial risks are associated with this rulemaking.