[USA] EPA finalizes ambitious GHG emissions standards for passenger cars and light trucks

On December 20, 2021, the Environmental Protection Agency (EPA) finalized its greenhouse gas (GHG) emissions standards for passenger cars and light trucks for Model Years (MY) 2023 through 2026.[1] According to the EPA, the standards are the most ambitious vehicle GHG emissions standards ever established for the light-duty vehicle sector in the U.S. The EPA’s final standards for 2025 and 2026 are more ambitious than those proposed in the initial rulemaking stage in August of 2021.

The final standards will unlock $190 billion in net benefits, including reduced impacts of climate change, improved public health from lower pollution, and cost savings for vehicle owners through improved fuel efficiency. The EPA projects that as the GHG standards get stronger over four years, sales of electric vehicles and plug-in hybrid vehicles will grow from about 7% market share in MY 2023 to about 17% in MY 2026. The standards will also result in avoiding more than 3 billion tons of GHG emissions, equivalent to more than half the total of U.S. CO2 emissions in 2019. Though the standards are ambitious, the EPA said that they provide adequate time for manufacturers to comply at reasonable costs. The final standards also put the light-duty vehicle GHG program on track to launch the next phase of standards for MY 2027 and beyond. The EPA is planning to initiate a separate rulemaking to set standards for MY 2027 and later in compliance with Biden’s “Executive Order on Strengthening American Leadership in Clean Cars and Trucks.”

[1] https://www.epa.gov/newsreleases/epa-finalizes-greenhouse-gas-standards-passenger-vehicles-paving-way-zero-emissions

[USA] “In Civil Settlements with the United States and California, Fiat Chrysler to Settle Allegations of Cheating on Federal and State Vehicle Emissions Tests”

[EPA, 10 January 2019]

Fiat Chrysler Automobiles N.V., FCA US, and affiliates were accused of violating the Clean Air Act and California laws. But the company managed to reach a settlement with the Department of Justice, the EPA, and the State of California. The resulting settlement requires Fiat Chrysler to start a recall program that would repair over 100,000 non-compliant diesel vehicles sold or leased sin the US and would have to offer an extended warranty on these repaired cars. In addition, the automobile company needs to pay $305 million to settle the claims of manipulating emission tests and failing to disclose the illegal devices used to defeat the emission tests. Finally, the company will have to create a program to mitigate the excess pollution caused by the exploitation of emission tests by their vehicles. Fiat has also entered into a separate settlement with the state of California which requires the company to pay another $19 million for Fiat’s non-compliant vehicles in California. Separately, the company must pay $6 million to United States Customs and Border Protection to resolve accusations of the illegal importation of 1,700 non-compliant vehicles. It is important to note that these settlements do not “resolve any potential criminal liability.”

[USA] “EPA Grants $1.6 Million to Northwest and Alaska Tribal Groups to Reduce Harmful Diesel Emissions”

[EPA, 12 September 2018]

The Environmental Protection Agency (EPA) has granted $1.6 million to three tribal groups in the Northwest and in Alaska; the Lummi and Tulalip Tribes (in Washington state) and the Tanana Chiefs Conference in Alaska. This award will be used to replace old diesel engines and generators thereby reducing the amount of harmful emissions the tribes will be exposed to. This award is provided under the EPA’s Diesel Emissions Reduction Act (DERA). DERA works to reduce diesel combustion byproducts (e.g. hydrocarbons, carbon monoxide, nitrogen oxides, and particulate matter) by funding retrofit projects, engine replacements, and promotes idle reduction. Chris Hladick, EPA’s Regional Administrator for the Pacific Northwest and Alaska, stated “Clean diesel technologies not only improve air quality in Indian Country, but advance innovation and support jobs. These projects will significantly reduce harmful emissions and protect public health in tribal communities.” It is interesting to note the contrast between the work of EPA’s DERA to reduce harmful emissions and the EPA top administrators’ efforts to reduce vehicle tailpipe emissions standards.

[USA] “Governor Hickenlooper Signs Executive Order Calling for State to Adopt Low Emissions Vehicle Standards”

[Colorado State, 19 June 2018]

Colorado Governor John Hickenlooper recently signed an executive order that ensures the state’s vehicles will comply with low emission vehicle (LEV) standards. By doing so, Colorado will join 13 other states who have implemented such standards including California as well as Washington DC; and stands in opposition to Trump’s efforts to ease vehicle emission standards. The executive order calls on the state’s Department of Public Health and Environment to develop a ruling to implement the LEV program and asks the Department to propose that rule to the Colorado Air Quality Control Commission for “possible adoption into the Colorado Code of Regulations by December 30, 2018.” This executive order will help Colorado meet its greenhouse gas reduction target of 26% by 2025. Governor Hickenlooper said of the order, “Colorado has a choice. This executive order calls for the state to adopt air quality standards that will protect our quality of life in Colorado. “Low emissions vehicles are increasingly popular with consumers and are better for our air. Every move we make to safeguard our environment is a move in the right direction.”

[USA] “Ford Confirms It Can Meet Strong Vehicle Standards – Company Must Oppose Trump Administration’s Severe Rollbacks”

[Union of Concerned Scientists, 10 May 2018]

On a May 10 conference call with shareholders, Ford Motor Company CEO, Jim Hackett, confirmed that Ford will remain committed to efficiency improvements and would be able to meet the Obama Administration’s vehicle emission standards- even if the Trump Administrations wants to roll-back these standards. Following Hackett’s comments, Michelle Robinson -Director of the Clean Vehicles Program at the Union of Concerned Scientists- encouraged Ford to publicly oppose the Trump Administration’s proposal to ease emissions standards: “Jim Hackett and his company have an opportunity to show real leadership—not just by keeping their word and delivering cleaner cars, but by telling the Trump administration not to throw out the successful standards that have made those cleaner cars possible. If Ford executives know they can meet these standards, they have a responsibility to defend them.”