Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles: Final Rule

Multi-Pollutant Emissions Standards
for Model Years 2027 and Later Light-
Duty and Medium-Duty Vehicles:
Final Rule

-------
Health Benefits

Cleaner vehicles provide much-needed benefits to communities across the country, especially in
communities near major roadways, where people of color and people with low income often live
and are disproportionately exposed. EPA estimates that the air pollution reductions from these
standards will provide $ 13 billion in annual health benefits. In 2055, EPA estimates harmful
pollutants will be significantly reduced (compared to 2055 levels without the final standards)
including:

• 8,700 tons of particulate matter

• 36,000 tons of nitrogen oxides

• 150,000 tons of volatile organic compounds

Economic and Consumer Benefits

This rule has substantial benefits for society from fuel savings and lowers repair and maintenance
costs for clean vehicles. The benefits of this rule will far exceed the total costs, with the annualized
value of monetized net benefits to society estimated to be $99 billion through the year 2055. This
includes $46 billion in reduced annual fuel costs, and nearly $ 16 billion in reduced annual main-
tenance and repair costs for drivers. Consumers are expected to save an average of $6,000 over the
lifetime of a new vehicle from reduced fuel and maintenance costs, once the standards are fully
phased in.

Advanced and Diverse Array of Technology

The standards are technology neutral. EPA expects that manufacturers will choose to produce a
diverse range of clean vehicles under the standards, including cleaner gasoline vehicles, hybrids
(HEVs), and plug-in hybrid electric vehicles (PHEVs), and full battery electric vehicles (BEVs).

This will translate into more vehicle options for consumers in the showroom.

Investments

The final standards reflect the significant investments in clean vehicle technologies that industry
is already making domestically and abroad, as well as ongoing U.S. market shifts and increasing
consumer interest in clean vehicles.

In addition, the Bipartisan Infrastructure Law and the Inflation Reduction Act are providing
unprecedented investment to accelerate the development and deployment of clean vehicle tech
nology. These measures provide significant support for expanding the manufacture, sale, and use
of clean vehicles.

Consumer Choice

This rule is key to expanding vehicle choice and savings for American drivers. More than 100
plug-in hybrid and full battery electric vehicle models are now available in U.S. markets alongside
hybrid and gas-powered options, giving Americans unprecedented flexibility in where and how they
choose to fuel.

-------
Overview of the Standards

EPA's new emissions standards recognize continued advancements in emission control technologies
that enable significant reductions in harmful air pollutants. These advancements include a diverse
suite of technologies that can reduce both GHG emissions and emissions that form ozone, PM75,
and NOx (i.e., "criteria pollutants"), including:

• Advanced gasoline vehicle technologies (e.g., advanced engines and transmissions)

• Hybrid electric vehicles (HEVs)

• Plug-in hybrid electric vehicles (PHEVs)

• Battery-electric vehicles (BEVs)

Rapid improvements in the feasibility and cost of these technologies as well as their increasing
deployment in the U.S. and around the world demonstrate that they can greatly reduce emissions
of both greenhouse gases and criteria pollutant precursors and are capable of being implemented
across a large portion of the new vehicle fleet.

Under the performance-based emissions standards, manufacturers choose the mix of technologies
they believe is best suited for their fleets to meet the standards. EPA anticipates that manufacturers
will continue to employ a diverse range of technologies to comply with the standards, but also
recognizes that manufacturer investments and consumer interest in electric vehicles are growing.
Automakers are including electric vehicles as an increasingly integral part of their current and
future product lines, leading to an increasing diversity of, and demand for, these clean vehicles.

What Vehicle Types Are Covered by the Standards?

The light-duty vehicle standards apply to passenger cars, light trucks, and heavier vehicles designed
primarily for the transportation of people, consistent with previous EPA criteria pollutant and
greenhouse gas standards. The medium-duty vehicle (MDV) category includes heavy-duty Class 2b
and 3 vehicles (vehicles with a gross vehicle weight rating (GVWR) of between 8,501 and 14,000
pounds), which are referred to here as MDVs to distinguish them from Class 4 and higher vehicles
that remain under EPA's heavy-duty vehicle program. The MDV category primarily includes large
pickups and vans that are typically used for work due to their higher towing and hauling capabilities
compared to light-duty vehicles.

Greenhouse Gas Emissions Standards

EPA is finalizing more protective greenhouse gas standards for both light-duty vehicles and medium-
duty vehicles. These standards phase in over a six-year period from MY 2027 through MY 2032.

For light-duty vehicles, the standards are projected to result in an industry-wide average target for
the light-duty fleet of 85 grams/mile (g/mile) of C07 in MY 2032, representing a nearly 50 percent
reduction in projected fleet average emissions target levels relative to the existing MY 2026 stan-
dards. The table below presents a summary of the projected industry average g/mile targets for the
MY 2027-203 2 standards for cars, trucks, and the overall light-duty fleet.

-------
Light-duty vehicle GHG standards: Projected targets, by regulatory class

(C02 grams/mile)

2027

2028

2029

2030

2031

2032

Cars

139

125

112

Trucks

184

165

146

128

109

Total Light-
Duty Fleet

170

153

136

119

102

For medium-duty vehicles, EPA is revising the existing standards for MY 2027 and establishing new
standards for MYs 2028-2032, given the increased feasibility of GHG emissions-reducing technolo-
gies in this sector in this time frame. These standards phase in over a six-year period from MY 2027
through MY 2032. When fully phased in, the MDV standards are projected to result in an average
target of 274 g/mile of C02 by MY 2032, representing a 44 percent reduction in projected fleet
average emissions target levels relative to the existing MY 2026 standards.

The table below presents a summary of the projected industry average g/mile targets for medium-
duty vans, pickups, and the overall medium-duty fleet.

Medium-duty vehicle GHG standards: Projected targets, by regulatory class

(C02 grams/mile)

2027

2028

2029

2030

2031

2032

Vans

392

391

355

317

281

245

Pickups

497

486

437

371

331

290

Total Medium-
Duty Fleet

461

453

408

353

314

274

Criteria Pollutant Emissions Standards

EPA is finalizing "Tier 4" criteria pollutant emissions standards for non-methane organic gases
(NMOG), NOx, PM, and other criteria pollutants and their precursors. For light-duty vehicles,
EPA is finalizing NMOG plus NOx standards that will phase down to a fleet average level of
15 milligrams per mile (mg/mi) by MY 2032, representing a 50 percent reduction from the
existing 30 mg/mi standards for MY 2025 established in the Tier 3 rule in 2014. For MDVs, EPA
is finalizing NMOG+NOx standards that will require a fleet average level of 75 mg/mi by MY
2033, representing a 58 percent to 70 percent reduction from the Tier 3 standards of 178 mg/mi
for Class 2b vehicles and 247 mg/mi for Class 3 vehicles. The standards will also reduce emissions
of mobile source air toxics. The fleet average standards are shown in the following table.

-------
NMOG+NOx Fleet-Average Emissions Standards

Model Year

Light-Duty Vehicles
NMOG+NOx (mg/mi)

Medium-Duty Vehicles
NMOG+NOx (mg/mi)

Class 2b

Class 3

2026 (reference)

30*

178*

247*

2027

175

2028

160

2029

140

2030

120

2031

100

2032

2033 and later

"Tier 3 standards provided for reference

The NMOG+NOx standards continue the emissions certification "bin" structure approach EPA
has used in prior programs. Under this structure, manufacturers assign each vehicle model to a bin
that includes the applicable NMOG+NOx standards. The standards both add more bin resolution
at low-emission bins to give manufacturers added flexibility and eliminate the highest certification
bins to disallow production of the highest-emitting vehicles. EPA is requiring manufacturers to
meet the standards across four driving cycles to ensure robust emissions control over a wide range
of in-use driving conditions.

For both light-duty and medium-duty vehicles, EPA is finalizing a PM standard of 0.5 mg/mi
and a requirement that the standard be met across three test cycles, including a cold temperature
(-7°C) test. The PM standard is a per-vehicle cap (not a fleet average) and will be fully phased in by
MY 2030 for light-duty vehicles and by MY 2031 for medium-duty vehicles. EPA projects the PM
standard will reduce tailpipe PM emissions from gasoline vehicles by over 95 percent in addition to
reducing mobile source air toxics.

EPA is finalizing cold temperature (-7°C) NMOG+NOx standards for light-duty vehicles and MDVs
to ensure robust emissions control over a broad range of operating conditions. EPA is finalizing
three provisions aligned with the California Air Resources Board (CARB) Advanced Clean Cars
II (ACC II) program for addressing light-duty vehicle NMOG+NOx emissions from frequently
encountered vehicle operating conditions not previously captured in EPA test procedures: (1) high
power cold starts in plug-in hybrid electric vehicles, (2) early drive-away, and (3) mid-temperature
engine starts. EPA is also finalizing standards aligned with the CARB ACC II program that
address high load emissions from medium-duty vehicles with high gross combination weight
rating (GCWR).

-------
To provide manufacturers with additional time to adjust product plans and apply technologies
to vehicles, EPA is finalizing gradual phase-ins for criteria pollutant standards shown in the table
below. For light-duty vehicles greater than 6000 pounds GVWR and medium-duty vehicles,
manufacturers have the choice of either the default phase-in or an optional incentivized early
phase-in schedule.

Phase-in Schedules for Criteria Pollutant Standards

Light-Duty Vehicles
Light-Duty Trucks 1-2
(GVWR < 6000 lb)

Light-duty Trucks 3-4
(GVWR 6001-8500 lb) and
Medium-duty Passenger

Vehicles
(GVWR 8501 -14,000 lb)

Medium-Duty Vehicles
(GVWR 8501 -14,000 lb)

Default

Early Option

Default

Early Option

2027

20%

2028

40%

2029

60%

2030

100%

80%

2031

100%

In addition, EPA is setting more protective standards for carbon monoxide.

Projected Mix of Technologies

The criteria pollutant and GHG standards are performance-based, allowing each automaker to
choose the mix of emissions control technologies that is best suited for their vehicle fleet to meet
the standards. EPA projects that there are a range of technology pathways for the industry to meet
the standards. We expect that consumers will continue to have a wide range of vehicle choices in
the market, from advanced gasoline vehicles to hybrids to plug-in hybrid electric vehicles to full
battery electric vehicles.

The final standards are projected to accelerate the transition to clean vehicle technologies. EPA
projects that from MYs 2030-2032 manufacturers may choose to produce battery electric vehicles
(BEVs) for about 30 percent to 56 percent of new light-duty vehicle sales and about 20 percent to
32 percent of new medium-duty vehicle sales. EPA also projects that consumers will see an increase
in the availability of other clean vehicle technologies, including hybrid electric vehicles and plug-in
hybrid electric vehicles, as well as cleaner gasoline vehicles.

The final NMOG+NOX standards also have multiple feasible paths to compliance, depending on
choices manufacturers make about deployment of emissions control technologies for internal
combustion engine (ICE) vehicles as well as electrification technologies. To meet the more protective
PM emissions standard, we project that manufacturers will widely utilize gasoline particulate filters
on vehicles with internal combustion engines.

-------
Public Health and Welfare Benefits

The final standards will result in significant benefits for public health and welfare. Making cars
cleaner is critical to improve air quality and address climate change. The transportation sector is
the largest U.S. source of GHG emissions, representing 29 percent of total GHG emissions.1

Within the transportation sector, light-duty vehicles are the largest contributor, at 58 percent of all
transportation sources and nearly 17 percent of total U.S. GHG,2 even before considering the
contribution of medium-duty Class 2b and 3 vehicles which are also included under this rule.
GHG emissions have significant impacts on public health and welfare.

EPA's rule will significantly reduce emissions of air pollutants that contribute to climate change
and unhealthy air. Between 2027 and 2055, the standards will cumulatively avoid 7.2 billion metric
tons of C07e. In 2055, the standards will reduce harmful air pollutants from vehicles, including
approximately 8,700 tons of PM25, 36,000 tons of NOx, and 150,000 tons of hydrocarbons,
compared to 2055 levels without the standards. These pollutants contribute to the formation of
PM ("soot") and ozone ("smog"), as well as elevated concentrations of pollution near roadways,
where millions of people live in communities that are disproportionately exposed to air pollution
from motor vehicles.

The GHG emission reductions under these standards will make an important contribution to
efforts to limit climate change and subsequently reduce the probability of severe climate change-
related impacts including heat waves, drought, sea-level rise, extreme climate and weather events,
coastal flooding, and wildfires. People of color, low-income populations and/or indigenous peoples
may be especially vulnerable to the impacts of climate change.

Benefits

EPA estimates that the total benefits of this rule far exceed the total costs, with annualized net
benefits in the range of $99 billion.

We estimate that $ 13 billion of annualized benefits are attributable to reduced emissions of criteria
pollutants that contribute to ambient concentrations of PM7 . PM7 is associated with premature
death and serious health effects such as hospital admissions due to respiratory and cardiovascular
illnesses, nonfatal heart attacks, aggravated asthma, and decreased lung function. The proposed
program is estimated to have $72 billion in climate benefits.

Costs and Consumer Savings

The vehicle technology costs of this program are estimated at $40 billion annualized value, but the
program also will have additional social benefits from fuel savings of $46 billion annualized value,
and repair and maintenance savings of $ 16 billion annualized value.

1 Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2021 (EPA-430-R-23-002, published April 2023).

2 Ibid.

-------
EPA estimates that the standards will increase the per-vehicle technology costs to auto manufac-
turers by about $ 1,200 for light-duty vehicles and $ 1,400 for medium-duty vehicles over the six-year
average from MY 2027-203 2. This estimate represents compliance costs to the industry and is not
the same as the price consumers pay when purchasing a new vehicle. For example, purchase price
could be reduced by any state and Federal purchase incentives that are available to consumers.
Under the Inflation Reduction Act, consumers are eligible for up to $7,500 for the purchase of a
new plug-in hybrid or full battery electric vehicle.

In addition, consumers will benefit from significant savings on operating costs, including fuel,
maintenance, and repair savings, over the life of vehicles that meet the standards. Although EPA
cannot predict how an individual manufacturer will price vehicles, we project that the average
increase in the technology costs of a new vehicle will be more than fully offset by significant savings
in operating costs. We estimate that on average consumers will save about $6,000 over the lifetime
of a model year 2032 vehicle, compared to a vehicle meeting the 2026 standards.

Additional Provisions

In addition, EPA is finalizing greenhouse gas program revisions in several areas, including off-cycle
and air conditioning credits, the treatment of upstream emissions associated with battery-electric
and plug-in hybrid electric vehicles in compliance calculations, and vehicle certification and com-
pliance.

EPA is also finalizing battery durability and warranty requirements for light- and medium-duty
plug-in vehicles, and new standards to control refueling emissions from incomplete medium-duty
vehicles.

Lastly, EPA is finalizing revised small volume manufacturer provisions that are available to manu-
facturers of less than 5,000 vehicles per year and additional flexibilities for small businesses.

Public Participation

EPA appreciates the significant public input received through the rulemaking process. This rule
was informed by input from the public, including stakeholders such as community groups, labor
groups, environmental justice groups, automobile manufacturers, automotive suppliers, environ-
mental and public health organizations, and state, local, and tribal governments.

-------