EPA’s Finalized Tailpipe Regulations (2024)

In March 2024, EPA finalized new rules on vehicle emissions for both light- and heavy-duty vehicles that will push the auto industry to accelerate its transition to electric vehicles.

For light- and medium-duty vehicles, the EPA expects that EVs could account for up to 56% of new passenger vehicles sold for model years 2030 through 2032 under the new rules. That is implied from an industry-wide average emissions target of 85 grams of carbon dioxide per mile, representing an almost 50% reduction compared to existing standards for model year 2026 vehicles. The agency expects the average CO2 emissions target for medium-duty vehicles to fall by 44%. The finalized rule for light-and medium-duty vehicles was slightly less ambitious than the rule originally proposed in April 2023. The originally proposed limits were expected to effectively mean that 67% of all vehicle sales in 2032 will be all-electric.

For heavy-duty vehicles, EPA adopted a final rule for the GHG Emissions Standards for Heavy-Duty Vehicles – Phase 3. For heavy-duty vocational vehicles such as delivery trucks, refuse haulers, and public utility trucks, the Phase 3 standards vary according to vehicle type and range up to 60% stronger than the previous Phase 2 standards, which were adopted in 2016. For tractors such as day cabs and sleeper cabs on tractor-trailer
trucks, the Phase 3 standards vary according to vehicle type and range up to 40% stronger than the previous Phase 2 standards by 2032. The standards are estimated to produce $13 billion in annualized net benefits through the year 2055, including $10 billion in annualized climate benefits and up to $300 million in annualized health benefits from reduced emissions of fine particulate matter.