On September 15, 2009, EPA and NHTSA issued a joint notice that contains separate EPA and NHTSA proposals, both of which will require that 2012-2016 model year light duty vehicles emit fewer greenhouse gas (GHG) emissions. The Federal Register version of the proposal was issued on September 28, 2009 at 74 FR 49454. Though the two rules are intended to be harmonious and establish a single National program to reduce GHG emissions and improve fuel economy, they are different because each agency has different statutory mandates and authorities. EPA is proposing GHG emissions standards under the Clean Air Act (CAA) and NHTSA is proposing Corporate Average Fuel Economy (CAFE) standards under the Energy Policy and Conservation Act (EPCA), as amended.
Both agencies’ proposals apply to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016. However, EPA’s rule will regulate CO2 and other GHG emissions while NHTSA’s rule will establish CAFE standards in terms of miles per gallon (mpg). Per EPA’s proposal, light duty vehicles on average will meet a CO2 standard of 250 g/mile in the 2016 model year. Per NHTSA’s proposal, light duty vehicles on average will be required to meet a CAFE standard of 34.1 mpg in model year 2016. These standards are expected to cause manufacturers to increase their light duty fleet fuel economy by about 5% per year over the affected time period (2012-2016MYs).
EPA and NHTSA jointly estimate that the proposed requirements will increase the cost of a typical 2016 MY light duty vehicle by about $1,100 (eleven hundred dollars). They expect, however, that the average consumer will spend $3,000 less on fuel and thus realize a net savings of $1,900.
Deadline for comments: November 27, 2009.
Public hearings: Three public hearings will be held: Oct. 21 (Detroit), Oct. 23 (NYC), and Oct. 27 (LA).