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1 1 (May 9, 2022)

handle is hein.crs/govegwd0001 and id is 1 raw text is: Congre &oa FResedrch Serv/c hnorming Ahej lgs ive debate s 'ne 1914 Updated May 9, 2022 Vehicle Fuel Economy and Greenhouse Gas Standards On August 5, 2021, the Biden Administration proposed amendments to the federal standards that regulate fuel economy and greenhouse gas (GHG) emissions from new light-duty vehicles-a category that includes passenger cars and most sports utility vehicles, vans, and pickup 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). EPA finalized its amendments on December 30, 2021; NHTSA finalized its amendments on May 2, 2022. President Biden also signed Executive Order 14037, Strengthening American Leadership in Clean Cars and Trucks (86 Federal Register 43583), which (1) requires EPA and NHTSA to begin work on future rulemakings for multipollutant and fuel efficiency standards for both light- duty vehicles and heavy-duty vehicles and engines that would take effect beginning in model year (MY) 2027, and (2) sets a nonbinding electrification goal that 50 percent of all new passenger cars and light trucks sold in 2030 be zero-emission vehicles, including battery electric, plug-in hybrid electric, or fuel cell electric vehicles. Some policymakers see these pending rulemakings as an opportunity to re-envision the goals and structures of the federal vehicle fuel economy and GHG emission program. CAF E Standards In an effort to reduce dependence on imported oil, the Energy Policy and Conservation Act of 1975 (EPCA; P.L. 94-163) established CAFE standards for passenger cars beginning in MY1978 and for light trucks beginning in MY1979. 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 MY2005-2007 and MY2008-2011, 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. In December 2009, EPA promulgated findings that GHGs endanger both public health and welfare and that GHG emissions from new motor vehicles contribute to that endangerment. With these findings, the CAA required the agency to establish standards for emissions of the pollutants. The National Program: Rulemakings In 2010, the Obama Administration brokered an agreement between 13 auto manufacturers, the State of California, the United Auto Workers union, and other 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 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 MY2012-2016 light-duty vehicles in 2010 (Phase 1) and for MY2017-2025 vehicles in 2012 (Phase 2). Under Phase 2, the manufacturers agreed to reduce GHG emissions from their MY2025 fleet by about 50% compared to MY2010. The Trump Administration revised the MY2022-2025 standards, asserting that key assumptions in the Obama-era rulemakings-including gasoline prices, technology costs, and consumer acceptance- were optimistic or have significantly changed. In 2019, the agencies finalized the Safer, Affordable, Fuel-Efficient (SAFE) Vehicles Rule, Part One: One National Program, wherein NHTSA asserted that EPCA preempts state and local GHG standards because they are related to fuel economy standards. Further, EPA withdrew the CAA preemption waiver it had granted to California in January 2013 as it relates to the state's GHG and Zero Emission Vehicle programs for MY2017-2025. The agencies finalized the second part of the SAFE Vehicles Rule in March 2020. They projected that the new rule would increase the average fuel economy of vehicles sold by 1.5% each year from MY2021 to MY2026. This compared to an approximate 5% increase each year under the 2012 Phase 2 standards.

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