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1 1 (April 17, 2020)

handle is hein.crs/govdaao0001 and id is 1 raw text is: ,... ....... :ns r'cb S, Updated April 17, 2020 Vehicle Fuel Economy and Greenhouse Gas Standards On March 31, 2020, the Trump Administration finalized amendments to the federal standards that regulate fuel economy and greenhouse gas (GHG) emissions from new passenger cars and light 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). CAFE Stw,-,dards The origin of federal fuel economy standards dates to the mid-1970s. The oil embargo of 1973-1974 imposed by Arab members of the Organization of the Petroleum Exporting Countries and the subsequent tripling in the price of crude oil brought the fuel economy of U.S. automobiles into sharp focus. The fleet-wide fuel economy of new passenger cars had declined from 15.9 miles per gallon (mpg) in model year (MY) 1965 to 13.0 mpg in MY 1973. In an effort to reduce dependence on imported oil, the Energy Policy and Conservation Act (EPCA; P.L. 94-163) established CAFE standards for passenger cars beginning in MY 1978 and for light trucks beginning in MY 1979. The standards required each auto manufacturer to meet a target for the sales-weighted fuel economy for its entire fleet of vehicles sold in the United States in each model year. CAFE standards, and new vehicle fuel economy, rose steadily through the late 1970s and early 1980s. After 1985, Congress did not revise the legislated standards for passenger cars for several decades, and they remained at 27.5 mpg until 2011. The light truck standards were increased to 20.7 mpg in 1996, where they remained until 2005. NHTSA promulgated two sets of standards in the mid-2000s for MYs 2005-2007 and MYs 2008-2011, increasing light truck standards to 24.0 mpg. In 2007, Congress enacted the Energy Independence and Security Act (P.L. 110-140), mandating a phase-in of increased CAFE standards reaching 35 mpg by 2020. This mandate was incorporated into the design of the One National Program (see below). GHG Standard~s Whether and how EPA could regulate GHGs through existing Clean Air Act (CAA) authority was debated for more than a decade before the agency took action. In the April 2007 decision Massachusetts v. EPA, the Supreme Court held that EPA has the authority to regulate GHGs from new motor vehicles as air pollutants under the CAA. In the 5-4 decision, the Court determined that GHGs fit within the CAA's unambiguous and sweeping definition of air pollutant. The Court's majority concluded that EPA must, therefore, decide whether GHG emissions from new motor vehicles contribute to air pollution that may reasonably be anticipated to endanger public health or welfare or provide a reasonable explanation why it cannot or will not make that decision. On December 15, 2009, EPA promulgated findings that GHGs endanger both public health and welfare and that GHG emissions from new motor vehicles contribute to that endangerment. The Onel Na-flonml Nrcgranmz Phs Based on EPA's 2009 findings, and amidst a global economic recession, the Obama Administration brokered an agreement among major stakeholders in the automotive and truck industries, the states, and other interested parties to develop and implement vehicle GHG emission standards. Because carbon dioxide (C02) from vehicle fuel combustion is a major source of GHG emissions, President Obama directed EPA to work with NHTSA to align the GHG standards with the CAFE standards. EPCA and CAA generally preempt states from adopting their own fuel economy and emission standards for new motor vehicles. However, CAA Section 209(b) allows the State of California to request a preemption waiver for its motor vehicle emission standards provided that they are at least as stringent as federal standards and, among other things, are necessary to meet compelling and extraordinary conditions. EPA granted California a waiver for its state's inaugural GHG standards in July 2009, and President Obama directed EPA and NHTSA to align the federal GHG and fuel economy standards with those developed by California. The agencies finalized a joint rulemaking for MY 2012-2016 light-duty motor vehicles on April 1, 2010 (Phase 1 standards). The Obama Administration referred to the coordinated effort as the One National Program. T,, ,,e O Ne t~ , Prgrm Phase ... EPA and NHTSA promulgated a second phase of CAFE and GHG emission standards for vehicle MYs 2017-2025 on October 15, 2012 (Phase 2 standards). As with the Phase 1 rulemaking, the Phase 2 standards were preceded by a multiparty agreement, brokered by the Obama Administration, including the State of California, 13 auto manufacturers, and the United Auto Workers union. The manufacturers agreed to reduce GHG emissions from their fleets by about 50% by 2025 compared to 2010, with fleet- wide fuel economy rising to nearly 50 mpg. The agencies' fuel economy and GHG standards apply to the new fleet of passenger cars and light trucks-including most sport utility vehicles, vans, and pickup trucks-sold by a manufacturer within the United States during a given model year. In both the Phase 1 and Phase 2 standards, the agencies used the concept of a vehicle's footprint to set differing targets for different-sized vehicles. These attribute-based standards differ structurally from the original CAFE standards, which grouped domestic passenger cars, imported passenger cars, and light trucks into three broad categories. Generally, the larger the vehicle R,, 'gmm ppmmp mgnowgo 10 0\ ILU

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