Office of Transportation and Air Quality

EPA-420-F-11-027

July 2011

EPA and NHTSA, in Coordination with 

California, Announce Plans to Propose 

Greenhouse Gas and Fuel Economy 

Standards for Passenger Cars and 

Light Trucks

The U.S. Environmental Protection Agency (EPA) and the U.S. 

Department of Transportation’s National Highway Traffic Safety 

Administration (NHTSA), are announcing plans to propose strong 

and coordinated Federal greenhouse gas and fuel economy standards 

for passenger cars and light-duty trucks, consistent with the May 21, 

2010 Presidential Memorandum. 

The agencies are issuing a Supplemental Notice of Intent outlining the key program 

elements of a National Program that EPA and NHTSA plan to propose for model 

year (MY) 2017-2025 light-duty vehicles. The agencies have continued to coordinate 

extensively with California, and have held extensive discussions with stakeholders, 

including automakers, states, environmental groups, and others, to ensure our proposal is based on the most robust technical analysis possible. Many automakers and 

California have announced their commitment to support the National Program.1

This approach, if ultimately adopted, will allow manufacturers to build a single 

light-duty national fleet that would satisfy all requirements under both programs, and 

would provide significant reductions in GHGs and oil consumption. 

The standards under consideration are projected to reduce GHGs by approximately 2 

billion metric tons and save 4 billion barrels of oil over the lifetime of MY 2017-2025 

vehicles. These standards have significant benefits to American consumers by reducing 

the costs they would pay to fuel these more efficient vehicles. 

1 The letters of commitment from these organizations can be found at 

Regulatory Announcement

www.epa.gov/otaq/climate/regulations.htm
Regulatory Announcement

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Key Elements of Future Proposed Standards

EPA and NHTSA intend to propose two separate but coordinated sets of standards for model 

years 2017 through 2025, each under their respective statutory authorities. Both the proposed 

CO2 and CAFE standards would be based on a vehicle’s “footprint,” or size, similar to the standards currently in effect through model year 2016, and would become more stringent each 

model year from 2017 through 2025.

EPA intends to propose standards that would be projected to achieve, on an average industry 

fleet wide basis, 163 grams/mile of CO2 in model year 2025 (this would be equivalent, on a 

mpg-equivalent basis, to 54.5 mpg if all of the CO2

 emissions reductions were achieved with 

fuel economy technology).2 For passenger cars, the CO2 compliance values associated with the 

footprint curves would be reduced by 5 percent each year from the CO2 -footprint curves for the 

model year 2016 passenger car standard. In recognition that full-size pick-up trucks have unique 

challenges compared to other light-duty trucks and passenger cars, EPA intends to propose a 

lower annual rate of improvement for light-duty trucks in the early years of the program. For 

light-duty trucks, the proposed overall annual rate of CO2 emissions reduction in model years 

2017 through 2021 would be 3.5 percent per year. For model years 2022 through 2025, EPA 

expects to propose an overall annual rate of CO2 emissions reduction for light-duty trucks of 5 

percent per year.

Given the long time frame at issue in setting standards for MY2022-2025 light-duty vehicles, 

EPA and NHTSA intend to propose a comprehensive mid-term evaluation. Consistent with the 

agencies’ commitment to maintaining a single national framework for vehicle GHG and fuel 

economy regulation, the agencies will conduct the mid-term evaluation in close coordination 

with California.

In achieving the level of standards described above for the 2017-2025 program, the agencies 

expect automakers’ use of advanced technologies to be an important element of transforming 

the vehicle fleet. The agencies are considering a number of incentive programs to encourage 

early adoption and introduction into the marketplace of advanced technologies that represent 

“game changing” performance improvements, including:

•	 Incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles

•	 Incentives for advanced technology packages for large pickups, such as hybridization and 

other performance-based strategies

•	 Credits for technologies with potential to achieve real-world CO2 reductions and fuel 

economy improvements that are not captured by the standards test procedures. 

2 Real-world CO2

 is typically 25 percent higher and real-world fuel economy is typically 20 percent lower than the 

CO2 and CAFE values discussed here. For an mpg value that consumers can compare to their own vehicle’s label 

mpg or real world fuel economy, EPA estimates that the standards under consideration would yield a fleet with an 

approximate real world fuel economy of about 39 mpg by model year 2025.
Regulatory Announcement

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In addition, EPA plans to propose provisions for:

•	 Credits for improvements in air conditioning (A/C) systems, both for efficiency improvements and for use of alternative, lower global warming potential refrigerant 

•	 Treatment of compressed natural gas (CNG) and plug-in hybrid electric vehicles 

•	 Continued credit banking and trading, including a one-time carry-forward of unused 

MY 2010-2016 credits through MY 2021

Background

Following the successful adoption of a National Program for GHG and fuel economy standards 

for model years (MY) 2012-2016 vehicles, President Obama requested the agencies to continue 

their efforts to address standards for MY 2017-2025. In a May 21, 2010, Presidential Memorandum, the President requested that EPA and NHTSA work together to develop a national 

program that would “...produce a new generation of clean vehicles.” The President specifically requested 

that the agencies develop “...a coordinated national program under the CAA [Clean Air Act] and the 

EISA [Energy Independence and Security Act of 2007] to improve fuel efficiency and to reduce greenhouse gas 

emissions of passenger cars and light-duty trucks of model years 2017-2025.”3

 The President recognized 

our country could take a leadership role in addressing the global challenges of improving energy 

security and reducing greenhouse gas pollution, stating that “America has the opportunity to lead 

the world in the development of a new generation of clean cars and trucks through innovative technologies 

and manufacturing that will spur economic growth and create high-quality domestic jobs, enhance our energy 

security, and improve our environment.”

Since that time, the agencies have worked with the state of California to address all elements 

requested in the May 21, 2010 Presidential Memorandum. We completed an initial assessment of the technologies, strategies and underlying analyses that would be considered in setting 

standards for 2017-2025, in consultation with a wide range of stakeholders. The Interim Technical Assessment Report (TAR) and a Notice of Intent to (NOI) to conduct a joint rulemaking 

were concluded on September 30, 2010.4 Following the opportunity for public comment on the 

interim TAR and NOI, the agencies developed and published a Supplemental NOI (SNOI)5

 in 

December 2010 highlighting many of the key comments received in response to the September 

NOI and the TAR. That notice also discussed the agencies’ plans for many of the key technical 

analyses that would be undertaken in developing the upcoming proposed rulemaking. 

The National Program would apply to passenger cars, light trucks, and medium-duty passenger 

vehicles built in model years 2017-2025. Together, these vehicle categories, which include 

passenger cars, sport utility vehicles, minivans, and pickup trucks, are responsible for approximately 60 percent of all U.S. transportation-related fuel consumption and greenhouse gas 

emissions.

3 The Presidential Memorandum is found at: 

www.whitehouse.gov/the-press-office/presidential-memorandum-regarding-fuel-efficiency-standards.

4 75 FR 62739, October 13, 2010. 5 75 FR 76337, December 8, 2010.
Regulatory Announcement

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Next Steps

EPA and NHTSA are developing a joint proposed rulemaking, which will include full details on 

the proposed program and supporting analyses, including the costs and benefits of the proposal 

and its effects on the economy, auto manufacturers, and consumers. After the proposed rules are 

published in the Federal Register, there will be an opportunity for public comment and public 

hearings. The agencies plan to issue a Notice of Proposed Rulemaking by the end of September 

2011. California plans on adopting its proposed rule in the same time frame.

For More Information

You can access the EPA and DOT “Supplemental Notice of Intent: 2017-2025 Model Year 

Light-Duty Vehicle GHG Emissions and CAFE Standards” at EPA’s web site at:

www.epa.gov/otaq/climate/regulations.htm

For additional information, please contact EPA’s Office of Transportation and Air Quality at:

www.epa.gov/otaq/oms-cmt.htm