Last week, the Environmental Protection Agency (EPA) announced two proposed regulations impacting emissions standards for light, medium and heavy-duty vehicles. These regulations aim to push vehicle manufacturers to increase production of electric vehicles significantly to meet the Biden Administration’s goal of EVs accounting for 50% of new car sales by 2030.
These two rules will have economy-wide implications as they impact both personal transportation vehicles as well as commercial vehicles. The ability to access charging or re-fueling stations, increased production of batteries, as well as access to critical minerals are some of the many concerns being raised in response to these proposed regulations. The EPA has written these regulations to be “technology neutral,” both hydrogen and electric vehicles will meet the standards under these rules. However, without the proper infrastructure in place to support these new vehicles the regulation could put unprecedented strains on the supply chain, the power grid and the labor force.
Standards for Heavy-Duty Vehicles Would Have Biggest Impact on Members
The proposed regulation impacting heavy-duty vehicles could have the biggest impact on Energy Workforce Member Companies. This rule titled “Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles—Phase 3” affects commercial vehicles such as delivery trucks, refuse haulers and freight vehicles.
This rule is an extension and expansion of the Phase 2 rule addressing similar issues that was implemented in 2016. This proposed rule uses a phased approach with standards for vocational vehicles and day cab tractors increasing for every model year between 2028-2032. New standards for sleeper cab vehicles begin in model year 2030 and become increasingly more stringent through model year 2032.
The regulation will also differentiate the standards based on vehicle type and establish “an averaging, banking and trading program that allows manufacturers to trade credits, bank credits for future years and average credits in meeting the standards.”
EPA is holding a virtual public hearing on May 2 and May 3 to discuss this proposed rule. Registration information for this hearing, along with additional information on the regulation, can be found here
Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium Duty Vehicles
The second proposed regulation announced last Wednesday addressed “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium Duty Vehicles.” The standards will be specific to the type of vehicle and may increase in stringency incrementally for each model year. If this regulation is implemented as written, the EPA estimated electric vehicles will make up 54-60% of new vehicle sales in the U.S. by 2030, and as much as 64-67% by 2032.
The regulation addresses the funding opportunities and incentives passed in the Inflation Reduction Act and Bipartisan Infrastructure Law, citing provisions that will make these standards achievable for auto manufacturers.
EPA is holding a virtual public hearing on May 9 and May 10 to discuss this proposed rule. Registration information for this hearing, along with additional information on the regulation, can be found here.
Once the rule is posted to the Federal Register, a public comment period will follow. If your company is interested in making formal comments, contact Energy Workforce Senior Director Government Affairs Deidre Kohlrus.
Deidre Almstead Kohlrus, Senior Director Government Affairs, writes about industry-specific policies for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.