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MEMA Responds to Final Rule on Fuel Efficiency and Vehicle Emissions Standards

Date: March 31, 2020

Today, the U.S. Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) released the Safer Affordable Fuel Efficient (SAFE) Vehicles final rule setting fuel efficiency and vehicle emissions standards for model years 2021 through 2026. MEMA is still reviewing the details of the rule that provides a 1.5 percent year-over-year increase in the fuel efficiency and emissions standards. This 1.5 percent year-over-year increase reflects the motor vehicle suppliers’ request for continued progress in the standards. While more progress is achievable, this rule shows that the Trump administration listened when the supplier industry reasoned that continued progress in the standards was important to preserve both supplier investments and job growth in the U.S. This rule takes steps toward achieving that goal and supports the regulatory certainty the motor vehicle supplier industry needs.

In addition, the rule maintains important credit programs that provide flexibilities for automakers to meet the standards. Both the continued progress in the standards and the continuation of many of the credit programs provide support for motor vehicle supplier technology-driven, high-paying jobs that the administration has said they want to bring back and grow in the U.S. As the agencies move forward with the implementation of the standard, it is critical that they continue to engage with the motor vehicle supplier community and to understand and account for the industry’s role in driving innovation.

The new rule can be found here: https://www.epa.gov/sites/production/files/2020-03/documents/final-fr-safe-preamble-200330.pdf

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