On March 20, the US Environmental Protection Agency (EPA) announced the final vehicle standards for light- and medium-duty vehicles. These rules are meant to reduce air pollution by limiting vehicle tailpipe emissions. The regulations will allow American consumers to choose more cost-effective, eco-friendly vehicles, resulting in annual savings on fuel and upkeep expenses.
The regulations align with GPI’s goal to decarbonize the transportation system through reducing transportation emissions while also cutting the cost per mile. You can estimate your fuel cost savings from switching to an electric vehicle by using the fuel cost savings calculator we created for US drivers.
What are the latest EPA vehicle pollution standards?
The rules, which apply to vehicles manufactured between 2027 and 2032, build on the existing EPA vehicle standards, which can be traced back to the Clean Air Act of 1970. The legislation authorizes and directs the EPA to regulate vehicle and engine emissions and update the standards as needed.
The latest rules are more stringent and lower the target amount of average tailpipe emissions each year, resulting in a 50 percent drop in the average emissions per mile for light-duty vehicles such as cars, pickups, and SUVs between 2027 and 2032. The table below breaks down the projected emission targets.
Table 1. Projected targets for final light-duty vehicle greenhouse gas standards by regulatory class (carbon dioxide (CO2) grams/mile).
| 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | |
| Cars | 139 | 125 | 112 | 99 | 86 | 73 |
| Trucks | 184 | 165 | 146 | 128 | 109 | 90 |
| Total | 170 | 153 | 136 | 119 | 102 | 85 |
Source: “Final Rule: Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles,” United States Environmental Protection Agency, March 20, 2024, https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rule-multi-pollutant-emissions-standards-model.
The impact of the new EPA standards
Vehicles are America’s biggest air quality compromisers, producing about one-third of all man-made greenhouse gas emissions and significant amounts of nitrogen oxides, carbon monoxide, and other toxins.
These emissions are especially troubling because they pollute at street level, impacting health and quality of life. Several studies estimate that air pollution from transportation causes between 17,000 and 20,000 deaths each year. Most of these deaths are caused by fine particulate matter (PM 2.5) emitted by vehicles.
According to the EPA, “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.”
The EPA’s standards are technology-neutral and performance-based. While the rules direct automakers to reduce the average emissions per mile from vehicles, it does not prescribe methods or technologies.
Automakers have the flexibility to determine how the standards are met. They can comply with standards by producing and selling smaller, more fuel-efficient vehicles or adopting technologies like hybrid or electric vehicles. Automakers that do not meet the standards are subject to fines by the EPA.
To meet the new standards, the EPA estimates that electric vehicles (including plug-in hybrid and battery-electric vehicles) will constitute 32 percent of all new vehicle sales in the model year 2027 and gradually increase to 68 percent by 2032, as shown in figure 1.
Figure 1. Projected new vehicle technology penetration for final light- and medium-duty vehicle greenhouse gas standards.
Source: United States Environmental Protection Agency, March 20, 2024, https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rule-multi-pollutant-emissions-standards-model.
EPA standards continue the path toward cleaner air
The new EPA rules will continue the decades of progress we have made to clean our air and achieve better health outcomes since the Clean Air Act was passed. The rules will also help more Americans get into more affordable clean vehicles that will save them money in fuel and maintenance costs every year.
The EPA’s revised standards, incentives for clean vehicles outlined in the Inflation Reduction Act, and the funding for clean transportation and related infrastructure from the Bipartisan Infrastructure Law are set to revolutionize our transportation landscape. Implementing these standards will help accelerate EV adoption and support the EPA’s goal to make our air cleaner and the future climate safer.
Stay tuned for upcoming content as GPI continues to follow the latest EPA rulings. The EPA released the final rule for heavy-duty vehicles on March 29, and we will soon do a breakdown of this rule.
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