v>EPA United States Environmental Protection Agency Fact Sheet: Economics Final Rule: Rescission of the Greenhouse Gas Endangerment Finding and Motor Vehicle Greenhouse Gas Emission Standards Under the Clean Air Act Summary of Action • On February 12, 2026, U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin, alongside President Trump, finalized the single largest deregulatory action in U.S. history by rescinding the 2009 Obama-era Endangerment Finding and eliminating all subsequent federal greenhouse gas (GHG) emission standards for motor vehicles and engines. • The Endangerment Finding was the basis for all EPA's GHG regulations for new motor vehicles and engines. • Section 202(a) of the Clean Air Act (CAA) does not provide statutory authority for EPA to prescribe motor vehicle emission standards for the purpose of addressing global climate change concerns, and therefore, absent the Endangerment Finding, there is no legal basis to do so. • As a result of today's action, engine and vehicle manufacturers will 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. • This final action is only related to GHG emissions and does not affect regulations on any traditional air pollutants. Economic Impacts Savings and Affordability • This action will result in over $1.3 trillion in savings from 2027 through 2055. • Approximately $1.1 trillion in savings are from the reduced costs for new vehicles. o EPA estimates the average per-vehicle cost savings to be over $2,400/vehicle. • The additional $200 billion in savings are from the avoided costs of purchasing electric vehicle (EV) chargers and related equipment. o Manufacturers will no longer have the pressure to build EVs and can produce the vehicles that consumers want. • EPA expects repeal of the previous standards to reduce the cost of new vehicle production by eliminating the need for manufacturers to integrate costly technologies designed to meet EPA GHG standards. • Affordable vehicle ownership is essential to the American Dream and a primary driver of economic mobility out of poverty in the United States. • Americans rely on vehicles to reach jobs, education, health care, and essential services. This is especially true in rural parts of the country without public transportation. o By decreasing vehicle and regulatory compliance costs, EPA is improving affordability, expanding consumer choice, and ultimately advancing the American Dream by making it easier to reach jobs, grow small businesses, and participate fully in the transportation and logistics systems that power the U.S. economy. EPA 420-F-26-002 February 2026 1 ------- v>EPA United States Environmental Protection Agency Consumer Choice • The Obama and Biden Administration's illegal push towards EV mandates pressured industry to phase down production of traditional gas and diesel trucks, leaving Americans with fewer options. • Congress and President Trump acted decisively in 2025 to end the California EV mandate under the Congressional Review Act. This action takes another important step to pull back regulations that forced manufacturers toward EV in a way the market just does not support. • The action also gets rid of all off-cycle credits, including the start-stop button. Advancing Economic, Energy, and Transportation Priorities • EPA's action directly supports Pillar 5 of Administrator Zeldin's Powering the Great American Comeback—Protecting and Bringing Back American Auto Jobs. The trillions of dollars saved in compliance costs by repealing GHG standards will help relieve pressure on industry investments, supporting domestic manufacturing and safeguarding American competitiveness. • For commercial operators, including small businesses, trucking firms, and independent owner- operators, lower upfront vehicle costs can improve business viability and support the transportation and logistics sectors. Reduced compliance costs allow operators to invest in fleet renewal more frequently, improving overall efficiency, reliability, and operational safety. • By removing regulatory requirements across the light-duty and commercial-vehicle markets, this action aims to strengthen U.S. economic resilience, support jobs across the automotive supply chain, and maintain affordable and reliable transportation options for households and businesses. Read more in EPA's Regulatory Impact Analysis EPA 420-F-26-002 February 2026 2 ------- |