Apr 122022

National Highway Traffic Safety Administration Finalizes Model Year 2024-26 Vehicle Fuel Economy Standards

Aaron L. Flyer and Samuel B. Boxerman
, , ,

On Friday, April 1, the National Highway Traffic Safety Administration (NHTSA) announced its final fuel economy standards for model year 2024-26 vehicles. The final rule increases vehicle efficiency requirements, as represented through vehicle-footprint-based targets, 8% annually for model years 2024 and 2025 and 10% for 2026, which the agency concludes represents the maximum feasible level manufactures can achieve for these model years. NHTSA predicts that the new standards will yield an industrywide average fuel economy of approximately 49 miles per gallon for model year 2026 passenger cars and light trucks, which represents an increase of 10 miles per gallon over model year 2021.

As required by President Joe Biden’s January 20, 2021, Executive Order 13990, NHTSA’s final rule amends the model year 2021-26 standards set forth by the prior administration in its 2020 Safer Affordable Fuel Efficient Vehicle (SAFE) Rule. NHTSA considers that the new standards are appropriate, in part, because 1) the standards recognize that shortly after the agency finalized the SAFE rule, five major automakers voluntarily agreed to meet heighted fuel economy requirements through an agreement with California, and 2) the standards are consistent with the Environmental Protection Agency’s recently adopted carbon dioxide standards such that manufacturers can meet both standards with the same vehicle fleet. The final rule is awaiting publication in the Federal Register and will take effect 60 days from publication.

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.

Aaron L. Flyer

Washington, D.C.

aflyer@sidley.com

Samuel B. Boxerman

Washington, D.C.

sboxerman@sidley.com

You might also like
The Newest Phase of EPA’s Greenhouse Gas Emissions Standards: Phase 3

On March 29, 2024, the U.S. Environmental Protection Agency (EPA) announced its most recent national greenhouse gas (GHG) pollution standards for heavy-duty (HD) vehicles, including HD vocational vehicles and tractors. The rule establishes new CO2 emission standards for model year (MY) 2032 and later HD vehicles, with more stringent CO2 standards phasing in as early as MY 2027 for certain vehicle categories.

Fifth Circuit Limits EPA’s Attempts to Regulate PFAS Under Toxic Substances Control Act in Inhance Technologies v. EPA

On March 21, 2024, the U.S. Court of Appeals for the Fifth Circuit vacated two U.S. Environmental Protection Agency (EPA) orders under Section 5 of the Toxic Substances Control Act (TSCA), holding that EPA had exceeded its statutory authority when it issued the orders in an attempt to regulate the manufacture of per- and polyfluorinated substances (PFAS) by petitioner Inhance Technologies, LLC (Inhance). The Fifth Circuit’s decision comes after EPA’s Office of Enforcement and Compliance Assurance announced its National Enforcement and Compliance Initiatives for Fiscal Years 2024 – 2027, which involve increased emphasis on addressing PFAS exposure and contamination through enforcement actions and potential additional regulations.

U.S. Environmental Protection Agency Releases Draft Risk Evaluation Under the Toxic Substances Control Act for Formaldehyde

On March 15, 2024, the U.S. Environmental Protection Agency (EPA or the Agency) published its draft risk evaluation under the Toxic Substances Control Act (TSCA) for formaldehyde. This proposal is one of a series of risk evaluations EPA is conducting as required by the 2016 amendments to TSCA.