The U.S. Environmental Protection Agency (EPA) yesterday announced new proposed federal vehicle emissions standards that are intended to accelerate the ongoing transition to cleaner vehicles and reduce emissions. The proposals would avoid nearly 10 billion tons of CO2 emissions through 2055, equivalent to more than twice the total U.S. CO2 emissions in 2022. The proposed regulations are designed to ensure that electric vehicles (EVs) make up as much as 67 per cent of new passenger vehicles sold in the U.S. by 2032.
If implemented, we anticipate that the proposed regulations will have a significant impact on Canada’s economy given the high level of integration of automotive sectors and Canada’s rich supply of critical minerals essential to the production of EVs and EV batteries.
This bulletin briefly summarizes the proposed rules:
Light- and Medium-Duty Vehicles. The first set of proposed standards, the “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium Duty Vehicles”, builds on the EPA’s existing emissions standards for passenger cars and light trucks for model years (MYs) 2023 through 2026. The EPA projects that, with the new standards, EVs could account for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales in MY 2032. The proposed MY 2032 light-duty standards are projected to result in a 56% reduction in projected fleet average greenhouse gas emissions target levels compared to the existing MY 2026 standards. The proposed MY 2032 medium-duty vehicle standards would result in a 44% reduction compared to MY 2026 standards.
Heavy-Duty Vehicles. The second set of proposed standards, the “Greenhouse Gas Standards for Heavy-Duty Vehicles – Phase 3”, would apply to heavy-duty vocational vehicles (such as delivery trucks, refuse haulers or dump trucks, public utility trucks, transit, shuttle, school buses) and trucks typically used to haul freight. These standards would complement the criteria pollutant standards for MY 2027 and beyond heavy-duty vehicles that the EPA finalized in December 2022 and represent the third phase of EPA’s Clean Trucks Plan.