On March 31, 2020, the SAFE 2 joint final rule was issued by EPA and NHTSA. Per the final rule, the CAFE and CO2 emissions standards will increase in stringency at 1.5 percent per year from MY 2020 levels over MYs 2021-2026. Under the old rule, the standards would have increased 5% per year. Per the rule, EPA’s standards are projected to require, on an average industry fleet-wide basis, 201 grams per mile (g/mi) of CO2 in model year 2030, while NHTSA’s standards are projected to require, on an average industry fleet-wide basis, 40.5 miles per gallon (mpg) in model year 2030. Some important incentives for electrification are being eliminated. Compliance multipliers for BEVs and PHEVs were not extended as requested by automakers; the last year for these incentives remains MY 2021. Incentive credits for strong hybrid pickup trucks and for pickup trucks with significant over-compliance is discontinued after MY 2021 (was MY 2025). Conversely, dedicated and dual-fuel natural gas vehicles receive a new 2x compliance multiplier starting MY22.
A copy of the final rule and associated documents can be found here.
Docket ref: NHTSA-2018-0067; EPA-HQ-OAR-2018-0283.