A summary of Executive Order 14037
On August 5th, 2021, President Biden signed an executive order which has set into motion many rulemakings and electrification targets. This is expected to have a significant impact on funding of various federal programs for transport decarbonization. Here is a summary:
- 50% of new passenger cars (PC) and light-duty trucks (LDT) must be zero-emitting vehicles (ZEVs), which includes battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and fuel-cell electric vehicles (FCEVs)
Note: ZEVs are at ~ 4% market share today, EPA projects 17% share by 2026 due to recent fuel economy regulations. So this is not going to be easy.
- EPA shall set multi-pollutant emission standards – these include greenhouse gas (GHG) and criteria pollutant (NOx, hydrocarbons, CO, particulates, etc.) emission standards for LD and medium-duty vehicles (MDVs) for model years (MY) 2027 through at least 2030.
Note: CO2 / GHG standards and criteria pollutant standards (e.g. Tier 3) have traditionally been set in separate regulatory steps, hence this is the first time for doing such a combined standard. This will be a very heavy lift especially considering the limited time.
- EPA will have to set LD fuel economy standards for MY 2027 through at least 2030.
- EPA will have to set fuel efficiency standards for heavy-duty (HD) pickup trucks and vans for 2028 through at least 2030.
- EPA will have to set HD multi-pollutant standards for model years 2027 and beyond. Included are low NOx standards for 2027 through at least 2030 (final rule to be done by end of 2022) and an update to existing GHG standards for MY 2027 through at least MY 2029.
Note: The HD Low NOx standard is called “Cleaner Trucks Initiative” and is expected to align with the recent standards set by California, requiring a 90% reduction in tailpipe NOx emissions from trucks and buses.
- EPA to set MD and HD engine and vehicle GHG and fuel efficiency standards for MY 2030 and beyond.
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