On Your Behalf

On Your

Behalf

Proposed GHG Emissions Standards: A Direct Impact on the Supplier Community

The Environmental Protection Agency (EPA) recently proposed new greenhouse gas emissions (GHGs) standards on light vehicles for model years (MYs) 2023-2026. Designed to replace the current Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule, the proposal further supports the Administration’s executive order on vehicle emissions. It will have a significant impact on the automotive supplier community.

To summarize the proposed standards, it represents year-over-year light vehicle emission decreases of approximately 10% in MY2023 and 5% in MYs 2024-2026, with MY2026 being the most stringent emissions standards set to date.

The proposal also: • Extends advanced technology multiplier credits for BEVs, PHEVs, and FCEVs for MYs 2022 – 2025, and eliminates natural gas vehicle multiplier credits • Expands the off-cycle technologies credit program caps from 10 g/mile to 15 g/mile • Retains emissions credit averaging, banking and trading provisions which automakers have used since the inception of the current program

MEMA – OESA’s advocacy team in Washington, D.C. – has taken the following positions with policy makers on Capitol Hill on behalf of supplier members regarding the pre-2027 emission standards: • We support performance-based standards that allow for a broad spectrum of advanced technologies and innovations, including advances in ICE and electrification (BEV, PHEV, and FCEV) technologies. • We are committed to the shift towards electrification while still leveraging other American innovations that play a part in meeting the nation’s goals. • We propose a coordinated approach between Enviromental Protection Agency (EPA), the National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board (CARB). • We support expanding the off-cycle technology credit program and increasing credits caps; as well as the advanced technology multiplier credit as proposed.

For MY2027 and beyond, our goal is to continue to advocate for a broad spectrum of advanced technologies that utilize all supplier innovations and investments.

I invite you to stay informed about regulatory and legislative changes. Be sure a member of your team is on the MEMA Government Affairs Council (GAC) and sign up to receive text updates on the issues.

As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.

Julie A. Fream President and CEO OESA