The Environmental Protection Agency has published a final rule rescinding its 2009 Greenhouse Gas Endangerment Finding, which served as a prerequisite for regulating emissions from new motor vehicles and new motor vehicle engines. The Endangerment Finding was the basis for all of EPA’s GHG regulations for new motor vehicles and engines.

Without this finding, EPA said it lacks statutory authority under Section 202(a) of the Clean Air Act to prescribe standards for GHG (carbon dioxide, methane, nitrous oxide, and hydrofluorocarbons) emissions. Therefore, EPA has also finalized the repeal of all subsequent GHG emission standards from its regulations for light-, medium-, and heavy-duty on-highway vehicles and engines.

The agency claims this is the single largest deregulatory action in U.S. history and will save Americans over $1.3 trillion from 2027 through 2055 from the reduced costs for new vehicles and the avoided costs of purchasing electric vehicle chargers and related equipment.

As a result of these changes, engine and vehicle manufacturers no longer have any future obligations for the measurement, control, and reporting of GHG emissions for any highway engine and vehicle, including model years manufactured prior to this final rule. The EPA said this final action is only related to GHG emissions and does not affect regulations on any traditional air pollutants.

The EPA asserts that the Clean Air Act itself does not authorize EPA to regulate GHG emissions from new motor vehicles for the purpose of addressing global climate change, and that Congress must pass a new law if it wants the agency to regulate GHG emissions from motor vehicles.

The final rule rescinds EPA GHG emission standards and related regulatory provisions for light-, medium-, and heavy-duty vehicles and engines promulgated pursuant to the 2009 Endangerment Finding, including the following rulemakings:

Light-Duty Vehicle Greenhouse Gas Standards

• Model Year (MY) 2012–2016 Light-Duty Vehicle GHG Standards
  - Joint EPA–National Highway Transportation Safety Administration standards establishing federal GHG emission limits for passenger cars and light trucks.
• MY 2017 and Later Light-Duty Vehicle GHG Standards
  - EPA standards tightening GHG emission requirements beyond MY 2016
• MY 2023–2026 Light-Duty Vehicle GHG Standards
  - Revisions to national GHG standards for passenger cars and light trucks beyond MY2022.
• MY 2027 and Later Light-Duty Multi-Pollutant Standards (GHG Provisions)
  - Tightening GHG emission requirements beyond MY 2027.

Medium- and Heavy-Duty Vehicle and Engine GHG Standards

• Phase 1 Medium- and Heavy-Duty Vehicle GHG Standards
  - Initial federal GHG standards for heavy-duty engines and vehicles.
• Phase 2 Medium- and Heavy-Duty Vehicle and Engine GHG Standards (Through MY 2027)
  - Expanded GHG standards covering tractors, vocational vehicles, heavy-duty pickups and vans, and trailers.
• Phase 3 Medium- and Heavy-Duty Vehicle GHG Standards (MY 2027 and Beyond)
  - GHG standards applicable to later model years, including early phases extending into the 2030s.

The final rule also rescinds GHG testing and measurement requirements; vehicle and engine manufacturer GHG reporting and certification obligations; and compliance flexibilities, credit programs, and averaging, banking, and trading provisions specific to GHG emissions.

The rule does not affect criteria pollutant emission standards; mobile source air toxics standards; or vehicle fuel economy (CAFE) standards.