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EPA and NHTSA Announce Proposal of 2017-2025 Model Year Light-Duty Vehicle GHG Emissions and Fuel Economy Standards

Along with the proposed standards, which will require a 5 percent average reduction in greenhouse gas emissions and 4.3 percent better fuel economy per year to meet the 54.5 mpg goal, the program is expected to include a mid-term review.

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From AAIA Capital Report

WASHINGTON, D.C. –
The EPA and NHTSA have issued a supplemental notice of intent announcing a coordinated effort to reduce greenhouse gas emissions and fuel consumption of light-duty vehicles for model years 2017-2025. The notice, which broadly outlines what key elements are expected to come from the proposal, follows President Obama’s July 29 announcement of an agreement among vehicle manufacturers and labor unions to increase the average fuel economy requirements for cars and light-duty trucks to 54.5 miles per gallon by 2025. The agencies are expected to put forth their proposal for achieving the agreed upon standards by Sept. 28 of this year, followed by a final rule to be issued by July 31, 2012.

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Along with the proposed standards, which will require a 5 percent average reduction in greenhouse gas emissions and 4.3 percent better fuel economy per year to meet the 54.5 mpg goal, the program is expected to include a mid-term review. This would allow for a comprehensive evaluation of the standards, through public notice and comment in addition to information collection, assigned for model years 2022-2025. If either the EPA or NHTSA find that the emissions and fuel economy standards required for these years needs amending, then each agency has the opportunity to issue new standards by a certain date. EPA will have until April 1, 2018, to authorize new emissions standards while NHTSA must make a final decision with regard to fuel economy standards at least 18 months before the 2022 model year vehicles are released. This mid-term evaluation, which was originally deemed necessary due to the project’s long time frame, will also receive support from the California Air Resources Board (CARB).

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Similar to the 2012-2016 model year program, this proposal will offer incentives for automakers that wish to pursue using “game-changing” technologies to develop more efficient vehicles, including plug-in hybrids, fuel cells and air conditioners with lower global warming potential. In addition, the agencies will allow for these credits to be carried forward through 2021, with the intention of continuing to develop a marketplace of advanced technologies where credit trading among manufacturers is encouraged. Emergency and police vehicles as well as small volume vehicle manufacturers would be exempt from the proposed standards.

The full notice can be found here.

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