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Updated April 17, 2024

Automobiles, Air Pollution, and Climate Change

On August 5, 2021, President Biden signed Executive
Order 14037, Strengthening American Leadership in
Clean Cars and Trucks (86 FR 43583). The order required,
among other items, executive agencies to revisit and amend
the federal standards that regulate air pollution emissions,
greenhouse gas (GHG) emissions, and fuel economy of new
passenger cars and light trucks. These standards include the
Motor Vehicle Emission and Fuel Standards promulgated
by the U.S. Environmental Protection Agency (EPA), the
Light-Duty Vehicle GHG Emissions Standards
promulgated by EPA, and the Corporate Average Fuel
Economy (CAFE) Standards promulgated by the National
Highway Traffic Safety Administration (NHTSA). The
order also included a nonbinding electrification goal that
50 percent of all new passenger cars and light trucks sold
in 2030 be zero-emissions vehicles, including battery
electric, plug-in hybrid electric, or fuel cell electric
vehicles. EPA published its proposal-the Multi-
Pollutant Emissions Standards for Model Years 2027 and
Later Light-Duty and Medium-Duty Vehicles-on May 5,
2023 (88 FR 29184), and announced the final rule on
March 20, 2024. NHTSA published its proposal-the
Corporate Average Fuel Economy Standards for Passenger
Cars and Light Trucks for Model Years 2027-2032-on
August 17, 2023 (88 FR 56128).
Emissions from Automob e5
The light-duty vehicle (LDV) and medium-duty vehicle
(MDV) sectors (defined at 40 C.F.R. §86 and 49 C.F.R.
§523) generally include passenger cars, light trucks, and
most sport utility vehicles; as well as class 2b and class 3
trucks such as large pickups and vans. EPA reports that
these vehicles contribute to air pollution, such as ozone,
particulate matter, and air toxics, which are linked with
premature death and other serious health impacts, including
respiratory illness, cardiovascular problems, and cancer.
The agency estimates that LDVs and MDVs currently
account for approximately 11% of the United States' annual
anthropogenic emissions of nitrogen oxides (NO.), 8% of
volatile organic compounds (VOC), and 1% of fine
particulate matter (PM2.5). Further, according to EPA's
Inventory of U.S. Greenhouse Gas Emissions and Sinks:
1990-2022 (published April 2024), LDVs emitted over 1
billion metric tons of GHGs in 2022, or about 16% of the
United States' annual anthropogenic emissions of GHGs.
Agency Authoritie5s
EPA's Ar Po ution Standards
Section 202 of the Clean Air Act Amendments of 1970
(CAA; P.L. 91-604, as amended) requires EPA to establish
standards for emissions of air pollutants from new motor
vehicles which, in the Administrator's judgment, cause or
contribute to air pollution which may reasonably be
anticipated to endanger public health or welfare (42 U.S.C.
§7521). Standards under Section 202 must also consider

issues such as technological feasibility, the cost of
compliance, and industry lead time, among other items.
EPA has since promulgated standards for emissions of
nonmethane organic gases (NMOG), NO., PM, carbon
monoxide (CO), and formaldehyde (an air toxic).
EPA's GHG Standards
In the 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 CAA
Section 202. 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 (74 FR
66495). With these findings, the CAA required EPA to
establish standards.
NHTSA's CAFE Standards
The Energy Policy and Conservation Act of 1975 (EPCA;
P.L. 94-163) established CAFE standards for passenger cars
beginning in model year (MY) 1978 and for light trucks
beginning in MY1979 (49 U.S.C. Chapter 329). The
standards are designed primarily to conserve petroleum.
They require 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. 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 on CAFE passed by Congress.
Prior Standards
Air Po lution Standards
EPA's prior air pollution standards for LDVs (Tier 3, 79 FR
23414) were finalized in March 2014, to be phased-in
between 2017 and 2025, and closely align with California's
Low-Emission Vehicle (LEV) III program. Manufacturers
must meet fleet-average tailpipe emissions standards for
NMOG + NOx, PM, CO, and formaldehyde in a given
model year across several different test cycles. Tier 3 also
includes standards for low-sulfur fuel, evaporative
emissions, and on-board diagnostics, as well as compliance
flexibilities such as an emissions averaging, banking, and
trading program.

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