California Finalizes Agreement With Major Automakers on Emission Standards

The California Air Resources Board finalized agreements with major automakers – Ford, Honda, BMW, Volkswagen, and Volvo – to cut vehicle emissions in the state based upon a framework released last year, according to an Aug. 17 press release. The framework, which supports continued annual reductions of vehicle emissions through the 2026 model year, sets requirements that are stricter than the new federal standards. In March, the U.S. Environmental Protection Agency and Department of Transportation finalized a rollback of emissions standards for cars and light trucks for model years 2021-2026 to require annual increases of 1.5 percent, weakening an Obama-era rule that would have required increases of about 5 percent per year.

The framework will improve vehicle fuel economy standards by 3.7 percent year over year from model years 2022-2026. The agreements are voluntary commitments to cut emissions annually through the 2026 model year, encourage innovation to expedite the transition to electric vehicles, create certainty for the industry to make investments, and facilitate savings for consumers. The agency said that the states that have adopted California’s vehicle standards have notified each of the automakers of their intent to support the agreements.

In its first phase, the federal rule, called Safer Affordable Fuel-Efficient or SAFE rule, the U.S. Environmental Protection Agency withdrew a 2013 waiver that allowed California to pursue its own tailpipe pollution standard and zero-emission vehicle mandate, affecting more than a dozen states that have adopted California’s clean cars program. California, joined by 22 other states, filed a lawsuit challenging the decision. The lawsuit also includes a request to review a regulation by the Transportation Department to preempt California’s right to set tailpipe emission standards.