As Sales Peak EPA Finalises New Pollution Standards For EVs In US

As Sales Peak, EPA Finalizes New Pollution Standards For EVs In US

Biden-Harris Administration has finalised pollution standards for cars that position US companies and workers to lead towards a clean vehicle future, protect public health, address the climate crisis, and save drivers money. EPA has finalised this rule as sales of clean vehicles, including plug-in hybrid and fully electric vehicles, hit record highs last year.

The US Environmental Protection Agency (EPA) recently announced final national pollution standards for passenger cars, light-duty trucks, and medium-duty vehicles for model years 2027 through 2032 and beyond. The final standards deliver on the significant pollution reductions outlined in the proposed rule while accelerating the adoption of cleaner vehicle technologies. 

EPA received extensive feedback on the proposed rule, including through written comments, testimony at public hearings, and other stakeholder engagements. The final standards were informed by the best available data in the public record and rigorous technical assessments. Like the proposal, the EPA’s final rule gives manufacturers the flexibility to efficiently reduce emissions and meet the performance-based standards through the mix of technologies they decide is best for them and their customers. EPA’s analysis considers a broad suite of available emission control technologies and projects that consumers will continue to have a wide range of vehicle choices under the final rule, including advanced gasoline vehicles, hybrids, plug-in hybrid electric vehicles, and full battery electric vehicles.

These standards will avoid more than 7 billion tons of carbon emissions and provide nearly $100 billion of annual net benefits to society, including $13 billion of annual public health benefits due to improved air quality, and $62 billion in reduced annual fuel costs, and maintenance and repair costs for drivers.

EPA projects an increase in US auto manufacturing employment in response to these final standards, consistent with the broader Biden-Harris Administration commitment to create good-paying, union jobs leading the clean vehicle future. Strong standards have historically contributed to the US leading the world in the supply of clean technologies, with corresponding benefits for American global competitiveness and domestic employment. Since President Biden took office, companies have announced more than $160 billion in investment in US clean vehicle manufacturing and the US auto manufacturing sector has added more than 100,000 jobs.

These standards will provide greater certainty for the auto industry, catalyzing private investment, creating good-paying union jobs, and invigorating and strengthening the US auto industry. Over the next decade, the standards, paired with President Biden’s historic Investing in America agenda and investments in US manufacturing, will set the US auto sector on a trajectory for sustained growth. Additionally, the final standards will lower costs for consumers. Once fully phased in, the standards will save the average American driver an estimated $6,000 in reduced fuel and maintenance over the life of a vehicle.

EPA Administrator Michael S. Regan will join President Biden’s National Climate Advisor Ali Zaidi today at an event in Washington, DC to announce the final standards and how they build on President Biden’s historic climate and economic record. The event will be live-streamed starting at noon EDT.

“With transportation as the largest source of US climate emissions, these strongest-ever pollution standards for cars solidify America’s leadership in building a clean transportation future and creating good-paying American jobs, all while advancing President Biden’s historic climate agenda,” said EPA Administrator Michael S. Regan. “The standards will slash over 7 billion tons of climate pollution, improve air quality in overburdened communities, and give drivers more clean vehicle choices while saving them money. Under President Biden’s leadership, this Administration is pairing strong standards with historic investments to revitalize domestic manufacturing, strengthen domestic supply chains, and create good-paying jobs.”

“President Biden is investing in America, in our workers, and in the unions that built our middle class and established the US auto sector as a leader in the world,” said President Biden’s National Climate Advisor Ali Zaidi. “The President’s agenda is working. On factory floors across the nation, our auto workers are making cars and trucks that give American drivers a choice – a way to get from point A to point B without having to fuel up at a gas station. From plug-in hybrids to fuel cells to fully electric, drivers have more choices today. Since 2021, sales of these vehicles have quadrupled and prices continue to come down. This growth means jobs, and it means we are moving faster and faster to take on the climate crisis – all thanks to the President’s leadership.”

Statement from United Automobile Workers: “The EPA has made significant progress on its final greenhouse gas emissions rule for light-duty vehicles. By taking seriously the concerns of workers and communities, the EPA has come a long way to create a more feasible emissions rule that protects workers building ICE vehicles, while providing a path forward for automakers to implement the full range of automotive technologies to reduce emissions.”

Light- and Medium-Duty Vehicle Final Standards

The final standards announced today, the “Multi Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles,” build on EPA’s existing emissions standards for passenger cars and light trucks for model years 2023 through 2026. The standards continue the technology-neutral and performance-based design of previous EPA standards for cars, pickups, and vans, and leverage advances in clean car technologies to further reduce both climate pollution and smog- and soot-forming emissions. EPA is finalizing the same standard proposed for MY 2032 while allowing additional time for the auto sector to scale up clean vehicle manufacturing supply chains in the first three years covered by the rule.

Annually, the net benefits to society for the light- and medium-duty final rule are estimated to be $99 billion. The final rule is expected to avoid 7.2 billion tons of CO2 emissions through 2055, roughly equal to four times the emissions of the entire transportation sector in 2021. It will also reduce fine particulate matter and ozone, preventing up to 2,500 premature deaths in 2055 as well as reducing heart attacks, respiratory and cardiovascular illnesses, aggravated asthma, and decreased lung function.

Compared to the existing MY 2026 standards, the final MY 2032 standards represent a nearly 50% reduction in projected fleet average GHG emissions levels for light-duty vehicles and 44% reductions for medium-duty vehicles. In addition, the standards are expected to reduce emissions of health-harming fine particulate matter from gasoline-powered vehicles by over 95%. This will improve air quality nationwide, especially for people who live near major roadways and have environmental justice concerns.

Investing in America’s Clean Transportation Future

The final rule reflects the significant investments in clean vehicle technologies that the industry is already making domestically and abroad, as well as ongoing US market shifts and increasing consumer interest in clean vehicles. The Biden-Harris Administration is also directly supporting communities across America in moving towards a cleaner transportation future, including by building a national network of EV chargers and alternative-fuel stations; ensuring domestic manufacturers have the critical minerals and materials they need to make EV batteries; and funding clean transit and clean school buses, with priority for underserved communities. President Biden’s Investing in America agenda is focused on growing the American economy from the bottom up and the middle out – from rebuilding our nation’s infrastructure to creating a manufacturing and innovation boom to building a clean-energy economy that will combat climate change and make our communities more resilient.