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1 1 (March 22, 2021)

handle is hein.crs/govectg0001 and id is 1 raw text is: Congressional Research Service ^Inforrning the legislative debate since 1914 0 Updated March 22, 2021 Vehicle Fuel Economy and Greenhouse Gas Standards On January 20, 2021, President Biden issued Executive Order 13990, Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis, which directs federal agencies to review regulations and other agency actions from the Trump Administration, including 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). NHTSA and EPA have not released a proposal for a new set of standards at this time. CAFE Standards 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. 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 model year (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 of its entire fleet of vehicles sold in the United States in each model year. Under EPCA, CAFE standards and new vehicle fuel economy rose steadily through the late 1970s and early 1980s. After 1985, Congress did not revise the legislated standard for passenger cars for several decades, and it remained at 27.5 miles per gallon (mpg) until 2011. The light truck standard was increased to 20.7 mpg in 1996, where it remained until 2005. NHTSA promulgated two sets of standards in the mid-2000s for MYs 2005-2007 and MYs 2008-2011, increasing the light truck standard to 24.0 mpg. In 2007, Congress enacted the Energy Independence and Security Act (P.L. 110-140), mandating a phase-in of higher CAFE standards reaching 35 mpg by 2020. This was the last legislation to set fuel economy goals. GHG Standards 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 Clean Air Act (CAA). In the 5-4 decision, the Court's majority concluded that EPA must 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 National Program In 2010, the Obama Administration brokered an agreement between 13 auto manufacturers, the State of California, the United Auto Workers union, and other interested parties to develop and implement vehicle GHG emission standards. Because carbon dioxide (CO2) from vehicle fuel combustion is a major source of GHG emissions, EPA aligned its standards with NHTSA's CAFE program. EPCA and the 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. In 2009, EPA granted California a waiver for its GHG standards, and EPA and NHTSA aligned the federal GHG and fuel economy standards with those developed by California. The agencies referred to the joint standards as the National Program. The agencies finalized joint rulemakings for MY 2012-2016 light-duty motor vehicles in 2010 (Phase 1) and for MYs 2017-2025 vehicles in 2012 (Phase 2). Under Phase 2, the manufacturers agreed to reduce GHG emissions from their MY 2025 fleet by about 50% compared to MY 2010. 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. Generally, the larger the vehicle footprint, the lower the corresponding vehicle fuel economy target and the higher the C02- equivalent emissions target. These attribute-based standards allow auto manufacturers to produce a full range of vehicle sizes. This concept differs from the original CAFE standards, which grouped domestic passenger cars, imported passenger cars, and light trucks into three broad categories. The attribute-based standards enable manufacturers to produce a full range of vehicle sizes rather than designing a lighter and smaller vehicle fleet overall to meet the categorical targets. Under the regulations, manufacturers must report the characteristics of the vehicles they sell in each model year. This information allows EPA and NHTSA to calculate each manufacturer's CAFE and GHG targets under the standards given the specific pattern of sales. The agencies compare the calculated targets against the vehicles' fuel economy ittps://Crsreports.congress.gov

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