On March 20, 2024, the EPA issued a final vehicle emission rule aimed to accelerate the transition to electric passenger vehicles. The final rule softens the standards first proposed in April 2023 following significant concern voiced by the automobile industry. The final rule becomes effective in model year 2027 and should result in manufacturers being able to produce a mix of gas, electric, fuel cell, hybrid and plug-in hybrid vehicles.
The final rule does not require that manufacturers produce a certain number of electric vehicles. Instead, the final rule sets limits on greenhouse gas emissions that manufacturers must comply with for particular vehicle fleets. The EPA predicts such standards will result in a significant increase in new electric vehicle sales and a decrease in gas vehicle sales.
The final rule focuses on light- and medium-duty vehicles. The EPA predicts that this may result in a nearly 50 percent reduction in emission levels for light-duty vehicle fleets and a 44 percent reduction for medium-duty vehicle fleets. Some of the more difficult requirements of the final rule have been pushed back to 2030-2032.
Although the final rule substantially reduces the strict emissions reduction requirements of the April 2023 proposed rule, the automobile industry will still face significant challenges in moving to produce larger electric vehicle fleets under the final rule.
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