[Federal Register Volume 91, Number 32 (Wednesday, February 18, 2026)]
[Rules and Regulations]
[Pages 7686-7796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-03157]



[[Page 7685]]

Vol. 91

Wednesday,

No. 32

February 18, 2026

Part III





Environmental Protection Agency





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40 CFR Parts 85, 86, 600, et al.





Rescission of the Greenhouse Gas Endangerment Finding and Motor Vehicle 
Greenhouse Gas Emission Standards Under the Clean Air Act; Final Rule

Federal Register / Vol. 91 , No. 32 / Wednesday, February 18, 2026 / 
Rules and Regulations

[[Page 7686]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 85, 86, 600, 1036, 1037, and 1039

[EPA-HQ-OAR-2025-0194; FRL-12715-02-OAR]
RIN 2060-AW71


Rescission of the Greenhouse Gas Endangerment Finding and Motor 
Vehicle Greenhouse Gas Emission Standards Under the Clean Air Act

AGENCY: Environmental Protection Agency (EPA)

ACTION: Final rule.

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SUMMARY: In this action, the U.S. Environmental Protection Agency (EPA) 
is rescinding the Administrator's 2009 findings of contribution and 
endangerment and repealing all greenhouse gas (GHG) emission standards 
for light-duty, medium-duty, and heavy-duty vehicles and engines to 
effectuate the best reading of Clean Air Act (CAA) section 202(a)(1). 
The EPA determines that CAA section 202(a)(1) does not authorize the 
Agency to prescribe emission standards in response to global climate 
change concerns for multiple reasons, including the best reading of the 
statutory terms ``air pollution,'' ``cause,'' ``contribute,'' and 
``reasonably be anticipated to endanger.'' This statutory 
interpretation is corroborated by application of the major questions 
doctrine. The EPA further determines that GHG emission standards for 
new motor vehicles and engines do not impact in any material way the 
public health and welfare concerns identified in the Administrator's 
prior findings in 2009. On these multiple and independent bases, the 
EPA concludes that it lacks statutory authority to regulate GHG 
emissions in response to global climate change concerns under CAA 
section 202(a)(1), and is not finalizing the additional bases for 
repeal set out in the proposed rule.

DATES: This final action is effective on April 20, 2026. The 
incorporation by reference of certain material listed in the action was 
approved by the Director of the Federal Register as of March 27, 2023, 
June 17, 2024, and June 21, 2024.

ADDRESSES: 
    Docket: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2025-0194. Publicly available docket materials 
are available either electronically at www.regulations.gov or in hard 
copy at Air and Radiation Docket and Information Center, EPA Docket 
Center, EPA/DC, EPA WJC West Building, 1301 Constitution Ave. NW, Room 
3334, Washington, DC. For further information on EPA Docket Center 
services and the current status, please visit us online at www.epa.gov/dockets.
    Public Participation: Docket: All documents in the docket are 
listed on the www.regulations.gov website. Although listed in the 
index, some information is not publicly available, e.g., confidential 
business information (CBI) or other information whose disclosure is 
restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the internet and will be publicly available 
only in hard copy form through the EPA Docket Center at the location 
listed in the ADDRESSES section of this document.

FOR FURTHER INFORMATION CONTACT: For information about this final 
action, contact Alan Stout, Transportation Sector Impacts and Standards 
Division, Office of Transportation and Air Quality, Environmental 
Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 48105; 
telephone number: (734) 214-4805; email address: [email protected].

SUPPLEMENTARY INFORMATION: 
    Preamble acronyms and abbreviations. Throughout this document the 
use of ``we,'' ``us,'' or ``our'' is intended to refer to the EPA. We 
use multiple acronyms and terms in this preamble. While this list may 
not be exhaustive, to ease the reading of this preamble and for 
reference purposes, the EPA defines the following terms and acronyms 
here:

[deg] C Degree Celsius
ABT Averaging, banking, and trading
ACC Advanced Clean Cars
ACT Advanced Clean Trucks
AEO Annual Energy Outlook
ANPRM Advanced notice of proposed rulemaking
APA Administrative Procedure Act
ASTM American Society for Testing and Materials
BEV Battery electric vehicle
BRICK Building Blocks for Relevant Ice and Climate Knowledge
CAA Clean Air Act
CAFE Corporate Average Fuel Economy
CBI Confidential Business Information
CFR Code of Federal Regulations
CH4 Methane
CI Confidence interval
cm Centimeter
CO Carbon monoxide
CO2 Carbon dioxide
CO2e Carbon dioxide equivalent
Cong. Rec. Congressional Record
CRA Congressional Review Act
CWG Climate Working Group
CY Calendar year
D.C. Circuit U.S. Court of Appeals for the District of Columbia 
Circuit
DHS U.S. Department of Homeland Security
DRIA Draft Regulatory Impact Analysis
EIA Energy Information Administration
EISA Energy Independence and Security Act
EPA U.S. Environmental Protection Agency
EPCA Energy Policy and Conservation Act of 1975
EV Electric vehicle
EVSE Electric vehicle supply equipment
E.O. Executive Order
FaIR Model Finite amplitude Impulse Response (v2.2.3) climate 
emulator model
FCEV Fuel cell electric vehicles
FEL Family emission limit
FIP Federal Implementation Plan
FR Federal Register
GHG Greenhouse gas
GMST Global mean surface temperature
GSLR Global sea level rise
GVWR Gross vehicle weight rating
H.R. Rep. House of Representative Report
HC Hydrocarbons
HD Heavy-duty
HDV Heavy-duty vehicle
HFC Hydrofluorocarbon
ICE Internal-combustion engine
ICEV Internal-combustion engine vehicles
ICR Information collection request
IPCC United Nations Intergovernmental Panel on Climate Change
IRA Inflation Reduction Act
LD Light-duty
LDV Light-duty vehicle
MAGICC Model for the Assessment of Greenhouse Gas Induced Climate 
Change
MD Medium-duty
MDV Medium-duty vehicle
MMT Million metric tons
MOVES EPA's MOtor Vehicle Emission Simulator
Mt Megatonnes
MY Model year
N2O Nitrous oxide
NAAQS National Ambient Air Quality Standards
NAS National Academy of Sciences
NASEM National Academies of Sciences, Engineering, and Medicine
NCA5 Fifth National Climate Assessment
NHTSA National Highway Traffic Safety Administration
NMOG + NOX Nonmethane organic gases and oxides of 
nitrogen
NO2 Nitrogen dioxide
NOX Oxides of nitrogen
NTTAA National Technology Transfer and Advancement Act
O3 Ozone
OBBB One Big Beautiful Bill Act
OBD Onboard diagnostics
OMB Office of Management and Budget
OMEGA Model Optimization Model for reducing Emissions of GHGs from 
Automobiles
PHEV Plug-in Hybrid Electric Vehicles
PFCs Perfluorocarbons
PM Particulate Matter
PM2.5 Fine particulate matter
ppmv Parts per million by volume
PRA Paperwork Reduction Act
PSD Prevention of Significant Deterioration
Pub. L. Public Law
RESS Renewable Energy Storage System
RFA Regulatory Flexibility Act

[[Page 7687]]

RFS Renewable Fuel Standard
RIA Regulatory Impact Analysis
S. Rep. Senate Report
SAB Science Advisory Board
SCC Social Cost of Carbon
SDWA Safe Drinking Water Act
SF6 Sulfur hexafluoride
SIP State Implementation Plan
SO2 Sulfur dioxide
SOx Sulfur oxides
SSP2-4.5 Shared socioeconomic pathway 2 with a radiative forcing of 
4.5 watts per square meter by 2100
Stat. Statutes at Large
U.S. United States
U.S.C. U.S. Code
UMRA Unfunded Mandates Reform Act
USGCRP U.S. Global Change Research Program
VOCs Volatile Organic Compounds
yr Year

Table of Contents

I. General Information
    A. Does this action apply to me?
    B. Where can I get a copy of this document and other related 
information?
    C. Judicial Review and Administrative Review
II. Executive Summary
    A. Introduction
    B. Need for Regulatory Action
    C. Summary of Comments and Updates From the Proposal in This 
Final Action
    1. Issues Raised Regarding the Rulemaking Process
    2. Updates From the Proposal in This Final Action
III. Background
    A. The EPA's Historical Approach to CAA Section 202(a)(1)
    B. Petitions for Rulemaking and Massachusetts v. EPA
    C. The 2009 Endangerment Finding
    D. Implementation of the 2009 Endangerment Finding
    E. Reconsideration of the 2009 Endangerment Finding
IV. Legal Framework for Action
    A. Rescission of the Endangerment Finding
    1. Issues Raised Regarding Rescission Authority
    2. Issues Raised Regarding Reliance Interests
    B. Repeal of New Motor Vehicle and Engine GHG Emission Standards
V. Rescission of the Endangerment Finding
    A. Best Reading of CAA Section 202(a)(1)
    1. Final Rationale
    2. Summary of Comments and Updates Since Proposal
    B. Lack of Clear Congressional Authorization
    1. Final Rationale
    2. Summary of Comments and Updates Since Proposal
    C. Eliminating GHG Emissions From Motor Vehicles and Engines 
Would Be Futile
    1. Final Rationale
    2. Summary of Comments and Responses and Updates to the Final 
Action
VI. Additional Proposed Bases for Rescission of the Endangerment 
Finding and Repeal of GHG Emission Standards the Agency Is Not 
Finalizing at This Time
    A. Climate Science Alternative Basis
    B. There Is No Requisite Technology for Light- and Medium-Duty 
Vehicles That Meaningfully Addresses the Identified Dangers of the 
Six ``Well-Mixed'' GHGs
    C. There Is No Requisite Technology for Heavy-Duty Vehicles That 
Addresses the Identified Dangers of the Six ``Well-Mixed'' GHGs
    D. More Expensive New Vehicles Prevent Americans From Purchasing 
New Vehicles That Are More Efficient, Safer, and Emit Fewer GHGs
VII. Repeal of New Motor Vehicle and Engine GHG Emission Standards
    A. Scope and Impacts of Repealing the GHG Emission Standards
    B. Light- and Medium-Duty Vehicle GHG Program
    1. Background on the Light- and Medium-Duty Vehicle GHG Program
    2. Summary of Comments and Updates to the Light- and Medium-Duty 
Programs
    3. Changes to the Light- and Medium-Duty Vehicle GHG Regulations
    C. Heavy-Duty Engine and Vehicle GHG Program
    1. Background on the Heavy-Duty Engine and Vehicle GHG Program
    2. Summary of Comments and Updates to the Heavy-Duty Engine and 
Vehicle Programs
    3. Changes to the Heavy-Duty Engine and Vehicle GHG Regulations
VIII. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 14094: Modernizing Regulatory Review
    B. Executive Order 14192: Unleashing Prosperity Through 
Deregulation
    C. Paperwork Reduction Act (PRA)
    1. 2024 LD and MD Multi-Pollutant Emission Standards Rule
    2. 2024 HD GHG Emission Standards Rule
    3. Nonroad Compression-Ignition Engines and On-Highway Heavy-
Duty Engines, Supporting Statement for Information Collection 
Request (March 2023 Revision)
    D. Regulatory Flexibility Act (RFA)
    E. Unfunded Mandates Reform Act (UMRA)
    F. Executive Order 13132: Federalism
    G. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    H. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    J. National Technology Transfer and Advancement Act (NTTAA) and 
1 CFR Part 51
    K. Congressional Review Act (CRA)

I. General Information

A. Does this action apply to me?

    This action relates to companies that manufacture, sell, or import 
into the United States light-, medium-, or heavy-duty motor vehicles 
and engines. Potentially affected categories and entities include the 
following:
[GRAPHIC] [TIFF OMITTED] TR18FE26.002

    This table is not intended to be exhaustive but rather provides a 
guide for readers regarding entities potentially affected by this 
action. This table lists the types of entities that the EPA is 
presently aware could potentially be affected by this action. Other 
types of entities not listed in the table could also be affected. To 
determine whether your entity is regulated by this action, you should 
carefully examine the applicability criteria found in Code of

[[Page 7688]]

Federal Regulations (CFR) Title 40, parts 85, 86, 600, 1036, and 1037. 
If you have questions regarding the applicability of this action to a 
particular entity, consult the person listed in the FOR FURTHER 
INFORMATION CONTACT section.

B. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this final action is available on the internet at https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rule-rescission-greenhouse-gas-endangerment. Following publication in the Federal 
Register, the EPA will post the Federal Register version of the final 
action and key technical documents at this same website.

C. Judicial Review and Administrative Review

    Under CAA section 307(b)(1), judicial review of this final action 
is available only by filing a petition for review in the United States 
Court of Appeals for the District of Columbia Circuit (D.C. Circuit) by 
April 20, 2026. Under CAA section 307(b)(2), the requirements 
established by this final action may not be challenged separately in 
any civil or criminal proceedings brought by the EPA to enforce the 
requirements.
    CAA section 307(d)(7)(B) further provides that ``[o]nly an 
objection to a rule or procedure which was raised with reasonable 
specificity during the period for public comment (including any public 
hearing) may be raised during judicial review.'' This section also 
provides a mechanism for the EPA to convene a proceeding for 
reconsideration ``[i]f the person raising an objection can demonstrate 
to the EPA that it was impracticable to raise such objection within 
[the period for public comment] or if the grounds for such objection 
arose after the period for public comment, (but within the time 
specified for judicial review) and if such objection is of central 
relevance to the outcome of the rule.'' Any person seeking to make such 
a demonstration to us should submit a Petition for Reconsideration to 
the Office of the Administrator, U.S. Environmental Protection Agency, 
Room 3000, WJC South Building, 1200 Pennsylvania Ave. NW, Washington, 
DC 20460, with a copy to both the person(s) listed in the preceding FOR 
FURTHER INFORMATION CONTACT section, and the Associate General Counsel 
for the Air and Radiation Law Office, Office of General Counsel (Mail 
Code 2344A), U.S. Environmental Protection Agency, 1200 Pennsylvania 
Ave. NW, Washington, DC 20460.

II. Executive Summary

A. Introduction

    In this final action, the EPA rescinds the Administrator's 2009 
standalone decision entitled ``Endangerment and Cause or Contribute 
Findings for Greenhouse Gases Under Section 202(a) of the Clean Air 
Act,'' 74 FR 66496 (Dec. 15, 2009) (``Endangerment Finding'') and 
repeals all GHG emission standards for light-duty (LD), medium-duty 
(MD), and heavy-duty (HD) vehicles and engines manufactured or imported 
into the United States (U.S.) for model years (MY) 2012 to 2027 and 
beyond. Upon review of the underlying actions, recent decisions by the 
U.S. Supreme Court, and the robust public response to the proposal, the 
EPA concludes that we lack statutory authority to maintain this novel 
and transformative regulatory program. The appropriate policy response 
to global climate change concerns is a decision vested in Congress, and 
Congress did not decide the Nation's policy response to these concerns 
when it enacted CAA section 202(a)(1) to address domestic air pollution 
problems nearly sixty years ago, or in any subsequent amendment 
thereto. Relatedly, the EPA concludes that regulating GHG emissions 
from new motor vehicles and engines under CAA section 202(a)(1) has no 
material impact on global climate change concerns animating the 
Agency's regulatory efforts since 2009, much less the adverse public 
health or welfare impacts attributed to such global climate trends. 
Climate impact modeling submitted during the public comment period, and 
confirmed by our own analysis, demonstrates that even the complete 
elimination of all GHG emissions from all new and existing vehicles in 
the U.S. would have only de minimis impacts that fall well within the 
standard margin of error for global temperature and sea level 
measurement. This evidence further supports our conclusion that the 
regulation of GHG emissions falls outside the scope of air pollution 
problems Congress addressed when enacting CAA section 202(a)(1) and, 
separately, leads us to conclude that maintaining GHG emission 
standards under CAA section 202(a)(1) would be unreasonable given their 
futility and the immense burdens they place on regulated parties, 
consumers, and the economy.
    The EPA recognizes the gravity of this decision to the many 
stakeholders who submitted comments for and against to the proposal, 
including with respect to global climate change concerns and the 
burdens of our GHG regulatory program on manufacturers, auto workers, 
and American consumer choice and affordability. We closely reviewed the 
diverse array of scientific and technical information submitted in 
response to the proposal. The Administrator continues to harbor 
concerns regarding the scientific analysis contained in the 
Endangerment Finding, including because the decision severed the 
statutory analysis in multiple respects to assert the power to regulate 
GHG emissions in response to global climate change concerns. However, 
the Administrator is not basing this action on a new finding under CAA 
section 202(a)(1). Rather, we conclude that the EPA lacks statutory 
authority to resolve these questions under CAA section 202(a)(1). As 
recently as 2008, the Agency correctly understood that the statute was 
enacted to control air pollution that threatens health and welfare 
through local and regional exposure, and that launching a GHG emissions 
program under this authority would result in an unprecedented expansion 
of regulatory power with profound adverse effects on the economy and 
American households. With this final action, we return to fundamental 
principles governing decision-making within our democratic system: 
``Agencies have only those powers given to them by Congress,'' West 
Virginia v. EPA, 597 U.S. 697, 723 (2022), and ``the scope of an 
agency's own power'' is determined not by deference to asserted 
expertise, but by ``the best reading of the statute,'' which is fixed 
at the time of enactment. Loper Bright Enters. v. Raimondo, 603 U.S. 
369, 400-01 (2024).
    In 2009, the EPA took the unprecedented step of asserting authority 
to regulate GHG emissions in a standalone action that broke new ground 
and launched the Agency into a course of regulation that fundamentally 
reshaped many aspects of the Nation's economic and social life.\1\ In 
the Endangerment Finding, we interpreted CAA section 202(a)(1) for the 
first time to authorize regulation of domestic emissions from new motor 
vehicles and engines based on global climate change concerns rather 
than air pollution that endangers public health or welfare

[[Page 7689]]

through local or regional exposure. 74 FR 66526-27. We relied on that 
interpretation to define both the relevant ``air pollution'' and the 
relevant ``air pollutant'' as the combination of six ``well-mixed 
GHGs''--carbon dioxide (CO2), methane, nitrous oxide 
(N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), 
and sulfur hexafluoride (SF6)--while reserving the right to 
include additional ``climate forcers'' in these definitions in the 
future. 74 FR 66516-17, 66536-37. We also asserted that because the 
statute is ``silent on [the] issue,'' CAA section 202(a)(1) grants 
``procedural discretion'' to issue standalone findings that trigger a 
duty to regulate without considering the standards that must be issued 
in response. 74 FR 66501-02. The Administrator exercised this newfound 
discretion to make separate findings, without analyzing or promulgating 
any emission standards, that elevated global concentrations in the 
upper atmosphere of the six ``well-mixed GHGs'' constitute ``air 
pollution'' that may reasonably be anticipated to endanger public 
health and welfare, 74 FR 66516-36, and that GHG emissions from all 
potential classes of motor vehicles and engines contribute to such 
elevated global concentrations of GHGs in the upper atmosphere and 
therefore to air pollution that endangers public health and welfare, 74 
FR 66536-45.
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    \1\ See also ``Endangerment and Cause or Contribute Findings for 
Greenhouse Gases Under Section 202(a) of the Clean Air Act: EPA's 
Response to Public Comments'' (``EF RTC''), available in a 
Memorandum to Docket entitled ``EPA's Response to Public Comments on 
the 2009 Endangerment and Cause or Contribute Findings for 
Greenhouse Gases: Volumes 1-11,'' Document ID EPA-HQ-OAR-2025-0149.
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    With respect to endangerment, the Administrator found that global 
concentrations of six ``well-mixed'' GHGs from all foreign and domestic 
sources ``constitute the largest anthropogenic driver of climate 
change'' and attributed climate change impacts to global GHG 
concentrations. 74 FR 66517. Next, the Administrator summarized 
literature reviews finding that climate change ``can increase the risk 
of morbidity and mortality'' indirectly through increased global 
temperature, air quality effects, and effects on extreme weather events 
and can impact welfare indirectly through impacts on sea level rise and 
coastal areas, food production and agriculture, forestry, water 
resources, energy, infrastructure, and settlements, and ecosystems and 
wildlife. 74 FR 66523-35. On that basis, the Administrator found that 
global concentrations of six ``well-mixed'' GHGs constitute ``air 
pollution'' that endangers public health and welfare. 74 FR 66516. For 
purposes of this preamble, we use the phrase ``global climate change 
concerns'' to refer to the public health and welfare risks the 
Administrator associated with global climate change in the Endangerment 
Finding and subsequent actions since 2009.
    With respect to causation or contribution, the Administrator used 
annual emissions data for existing motor vehicles and engines from 2005 
to project that all potential classes of new motor vehicles and engines 
would emit four GHGs--CO2, methane, N2O, and 
HFCs--that collectively amounted to 4.3 percent of annual global GHG 
emissions and implicitly would continue in future years. 74 FR 66543. 
The Administrator acknowledged that a greater degree of contribution 
would usually be required to meet the statute's contribution element 
``when addressing a more typical local or regional air pollution 
problem.'' 74 FR 66539. Nevertheless, asserting discretion to interpret 
the ambiguous term ``contribute,'' the Administrator found that the 
``unique'' nature of global climate change meant that ``contributors 
must do their part even if their contributions to the global climate 
change problem, measured in terms of percentage, are smaller than 
typically encountered when tackling solely regional or local 
environmental issues.'' 74 FR 66542-43. In other words, the 
Administrator justified the Endangerment Finding on the theory that 
although the situation was ``unique'' and the ``contribution'' of 
domestic new motor vehicles and engines was not in line with the 
Agency's prior course of regulation under CAA section 202(a)(1), action 
was needed because all source categories and all other nations must 
``do their part'' to avoid ``a tragedy of the commons.'' Id. On that 
basis, the Administrator found that annual emissions from new motor 
vehicles and engines ``contributed'' to the ``air pollution,'' defined 
anew for those purposes as the accumulated global concentrations of the 
six ``well-mixed'' GHGs, that endangered public health and welfare by 
giving rise to global climate change concerns. 74 FR 66537.
    The EPA subsequently relied on the Endangerment Finding to impose 
increasingly stringent GHG emission standards for new motor vehicles 
and engines and to attempt, largely without success, to extend the GHG 
initiative into additional CAA programs. In Utility Air Regulatory 
Group v. EPA, 573 U.S. 302 (2014) (UARG), the Supreme Court largely 
rejected our attempt to extend GHG emission standards to stationary 
sources subject to Title I and Title V requirements as exceeding our 
authority under the CAA, including because we admitted that applying 
the statutory scheme as written to GHG emissions from most covered 
stationary sources would be unworkable and attempted to rewrite the 
statute by regulation. And in West Virginia v. EPA, 597 U.S. 697 
(2022), the Court vacated our attempt to shift the power grid away from 
using fossil fuels through GHG standards for existing power plants 
under CAA section 111(d). The Court held in both cases that the agency 
actions at issue implicated the major questions doctrine and that 
Congress must clearly authorize agencies to take actions that decide 
major questions of policy. Nevertheless, the EPA continued to retain 
and expand GHG emission standards for new motor vehicles and engines 
that impose billions of dollars in annual compliance costs on American 
businesses and consumers and reflect an increasing trend toward forcing 
a transition to the use of electric vehicles (EVs) rather than 
gasoline- or diesel-fueled motor vehicles and engines.\2\ Meanwhile, 
global GHG concentrations in the upper atmosphere have continued to 
rise, driven primarily by increased emissions from foreign sources,\3\ 
all without producing the degree of adverse impacts to public health 
and welfare in the U.S. anticipated in the 2009 Endangerment 
Finding.\4\
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    \2\ The EPA is not relying on the Regulatory Impact Analysis 
(RIA) prepared pursuant to Executive Order (E.O.) 12866 in any of 
the bases for this final action. Except where expressly stated, none 
of the legal bases for repeal in section V of this preamble reflect 
cost considerations, which are not relevant for purposes of this 
final action in determining the best reading of CAA section 
202(a)(1). For the limited instances in which cost is relevant as a 
general consideration, we discuss cost separately from, and do not 
rely upon, the RIA prepared pursuant to E.O. 12866.
    \3\ Crippa, M. et al. (2023). GHG emissions of all world 
countries. Publications Office of the European Union: https://doi.org/10.2760/953322.
    \4\ The EPA is not relying on new findings by the Administrator 
with respect to global climate change concerns under CAA section 
202(a)(1) as a basis for the rescission or repeals and is not 
finalizing the alternative basis set out in section IV.B of the 
preamble to the proposed rule. We are rescinding the Endangerment 
Finding and repealing all associated GHG emission standards for the 
reasons discussed in this preamble, which make it unnecessary and 
inappropriate to resolve outstanding scientific questions regarding 
global climate change concerns in the regulatory context of CAA 
section 202(a)(1). Nevertheless, the bases for this final action 
should not be understood as an additional endorsement or 
ratification of the scientific analysis in the Endangerment Finding. 
See section VI.A of this preamble for further discussion.
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    Upon reconsideration, the EPA now acknowledges that the 
Endangerment Finding and subsequent regulations exceeded the Agency's 
statutory authority under CAA section 202(a)(1). These actions rested 
on a profound misreading of the Supreme Court's decision in 
Massachusetts v. EPA, 549 U.S. 497 (2007), which vacated the denial of 
a petition for rulemaking in

[[Page 7690]]

which we concluded that CO2 and three other GHGs fell 
outside the statutory definition of ``air pollutant'' in CAA section 
302(g) and should not be regulated for additional policy reasons. As we 
later explained in a 2008 advance notice of proposed rulemaking 
entitled ``Regulating Greenhouse Gas Emissions Under the Clean Air 
Act,'' the statute was ``enacted to control regional pollutants that 
cause direct health effects,'' and regulating GHG emissions under its 
provisions ``could result in an unprecedented expansion of EPA 
authority that would have a profound effect on virtually every sector 
of the economy and touch every household in the land.'' 73 FR 44354, 
44355 (July 30, 2008) (``2008 ANPRM''). Intervening legal developments 
reinforce our conclusion that Congress did not decide the Nation's 
policy response to global climate change concerns in CAA section 
202(a)(1), let alone clearly authorize the EPA to make that policy 
choice by prescribing emission standards that force a transition to 
EVs. Nor does climate impact modeling suggest that the EPA's initiative 
has been anything but futile, which further supports the conclusion 
that CAA section 202(a)(1) was not designed with such a problem in 
mind. The inability of the EPA's GHG emission standards to materially 
impact the identified risks both corroborates the interpretation of CAA 
section 202(a)(1) adopted in this final action and serves as an 
independent basis to revoke those standards, separate and apart from 
the question of statutory interpretation and of the nature of the EPA's 
authority under this provision.
    The remainder of this section describes the need for regulatory 
action and the scope of this final action, the repeal of new motor 
vehicle and engine GHG emission standards for MYs 2012 to 2032 and 
beyond, and minor conforming adjustments to unrelated emission 
standards for new motor vehicles and engines that we are not altering 
as part of this rulemaking. We acknowledge that the EPA's decision to 
regulate new motor vehicle and engine GHG emissions has caused 
significant expenditure of resources by, and an imposition of burdens 
on, Federal, State, local, and private-sector entities, and consider 
those interests to the extent possible consistent with limits on our 
statutory authority. These interests emphasize the need for urgent 
action to avoid further expenditures in reliance on an unlawful 
regulatory framework that does not further public health or welfare in 
any material respect relevant to the global climate change concerns 
identified and relied upon in the 2009 Endangerment Finding.
    Section III of this preamble sets out relevant background, 
including the EPA's prior positions on regulating GHGs, the Supreme 
Court's decision in Massachusetts, the EPA's response in the 2008 ANPRM 
and events leading up to the Endangerment Finding, the approach taken 
in the Endangerment Finding, and the regulations issued by the EPA 
since 2009 as a result of the Endangerment Finding. We also summarize 
the premises, assumptions, and conclusions in the Endangerment Finding 
and the developments since 2009 that led the Administrator to develop 
concerns sufficient to initiate reconsideration of the ongoing validity 
and reliability of the Endangerment Finding in early 2025.
    Section IV of this preamble describes our legal authority to 
rescind the Endangerment Finding and repeal the resulting GHG emission 
standards issued under CAA section 202(a)(1). Because this final action 
does not impact fuel economy standards or emission standards for 
criteria pollutants and hazardous air pollutants regulated under the 
CAA, we explain the relationship between these regulations to set the 
outer bounds of the amendments at issue in this rulemaking. We 
summarize comments received on our authority for this final action, 
which largely acknowledged that the EPA may reconsider the prior 
actions covered by this rulemaking provided that we offer an adequate 
basis for the rescission and repeals, along with our responses to these 
comments.
    Section V.A of this preamble finalizes the rescission and repeals 
of these prior actions on the basis that the Endangerment Finding 
exceeded our statutory authority under CAA section 202(a)(1). First, we 
conclude that the term ``air pollution'' as used in CAA section 
202(a)(1) is best read in context as pollution that threatens health or 
welfare through local or regional exposure, consistent with the 
ordinary meaning of the term at the time of enactment, the statute's 
structure and history, and the EPA's longstanding practice before 2009. 
Second, we conclude that CAA section 202(a)(1) does not grant the 
Administrator ``procedural discretion'' to issue standalone findings 
that trigger a duty to regulate without analyzing and promulgating the 
required emission standards, or, conversely, to prescribe standards 
without making the requisite findings for the air pollutant emissions 
and class or classes of new motor vehicles or engines at issue. Third, 
we conclude that CAA section 202(a)(1) does not authorize the 
Administrator to sever the finding of endangerment from the finding of 
causation or contribution such that there is no nexus between the 
emissions at issue and the identified dangers to public health or 
welfare. Rather, CAA section 202(a)(1) requires the Administrator to 
find that the relevant air pollutant emissions from the class or 
classes of new motor vehicles or engines at issue cause, or contribute 
to, the same air pollution that the Administrator finds endangers 
public health or welfare, without relying on international emissions 
not covered by the statute. As the Supreme Court made clear in Loper 
Bright, we can no longer rely on statutory silence or ambiguity to 
expand our regulatory power. We also explain that the EPA reached 
contrary conclusions in the Endangerment Finding by redefining key 
statutory terms and misconstruing the Supreme Court's decision in 
Massachusetts, which, even on its own terms, did not purport to require 
the Agency to launch a GHG regulatory program under CAA section 
202(a)(1). We briefly summarize the public comments received for and 
against this interpretation, including with respect to the meaning of 
``air pollution'' in context and the scope of Massachusetts, as well as 
our general responses to these comments.
    Section V.B of this preamble finalizes the rescission and repeals 
on the additional basis that the Nation's potential response to global 
climate change concerns is an issue that has significant economic and 
policy impacts, including to Americans' basic way of life, that 
Congress did not clearly authorize the EPA to decide by invoking 
authority to prescribe emission standards under CAA section 202(a)(1). 
We conclude, consistent with West Virginia, UARG, and other relevant 
precedents, that the Nation's policy response to global climate change 
concerns is a question for Congress to decide in the first instance. 
Because nothing in the statute clearly authorizes the Administrator to 
assert the power to resolve this major question by prescribing emission 
standards, let alone by mandating a shift toward EVs, we conclude that 
CAA section 202(a)(1) does not authorize the Endangerment Finding or 
subsequent regulations. We briefly summarize public comments received 
for and against this invocation of the major questions doctrine, 
including the assertion by some commenters that Massachusetts shields 
CAA section 202(a)(1) from this analysis, and our general responses to 
these comments.

[[Page 7691]]

    Section V.C of this preamble sets out the robust public response to 
our request for comments on the efficacy of new motor vehicle and 
engine GHG emission standards in addressing the global climate change 
concerns animating the Endangerment Finding and subsequent regulations. 
We summarize the climate impact modeling submitted by commenters and 
the updated modeling we performed to evaluate the competing data and 
conclusions received. As explained below, we conclude that even the 
complete elimination of all GHG emissions from all new and existing LD, 
MD, and HD vehicles in the U.S. would not alter predicted trends in 
global mean surface temperature (GMST) \5\ or global mean sea level 
rise (GSLR) \6\ beyond de minimis levels that are below the accepted 
variability in GMST and GSLR measurement. Assuming for purposes of this 
final action the validity and the uncertainties inherent in the 
relevant models, the EPA estimates that the elimination of all U.S. 
vehicle and engine GHG emissions would result in an approximately 0.013 
degree Celsius ([deg]C) difference in GMST increase by 2050 compared to 
the baseline and an approximately 0.037 [deg]C difference by 2100 
compared to the baseline. Using similar methods, we estimate that this 
scenario would result in an approximately 0.09-centimeter (cm) 
difference in GSLR by 2050 compared to the baseline and an 
approximately 1.40 cm difference by 2100 compared to the baseline. For 
context, variability in GMST measurement from 2016 to 2025 was 0.14 
[deg]C, which is almost four times greater than the modeled GMST impact 
by 2100 of eliminating all U.S. vehicle and engine GHG emissions.\7\
---------------------------------------------------------------------------

    \5\ As GMST is a widely used metric for tracking temperature 
changes related to global climate change concerns, we use the term 
interchangeably with ``global temperature'' within this preamble and 
supporting documentation.
    \6\ As GSLR is a widely used metric for tracking sea level rise 
related to global climate change concerns, we use the term 
interchangeably with ``global sea level,'' ``sea level,'' and ``sea 
level rise'' within this preamble and supporting documentation.
    \7\ NOAA National Centers for Environmental Information, Climate 
at a Glance: Global Time Series, NOAAGlobalTemp, (Jan. 2026) 
available at https://ncei.noaa.gov/access/monitoring/climate-at-a-glance/global/time-series/globe/land_ocean/tavg/ytd/12/1950-2025.
---------------------------------------------------------------------------

    Importantly, this scenario is a dramatic overestimation of the 
potential impacts of GHG emission standards, which apply only to new 
vehicles and engines and do not eliminate emissions from existing 
vehicles. Taking this reality into account, the anticipated impact of 
GHG emission standards under CAA section 202(a)(1) is a further 
fraction of the modeled impacts of eliminating all U.S. vehicle and 
engine GHG emissions. Under an illustrative scenario in which the 
modeled impacts are discounted by 50 percent, which generally reflects 
the emission reductions requirements of the EPA's most recent 2024 LD 
and MD Multi-Pollutant Emission Standards Rule and 2024 HD GHG Emission 
Standards Rule (together, 2024 GHG Emission Standards Rules) that 
further restricted GHG emissions from MY 2027 levels for MY 2032 and 
beyond, we estimate an approximately 0.007 [deg]C difference in GMST 
increase by 2050 and 0.019 [deg]C by 2100 and an approximately 0.005 cm 
difference in GSLR by 2050 and 0.7 cm by 2100, all of which amount to 
one percent or less of the total projected change from the baseline. We 
conclude that these impacts are de minimis and that the futility of GHG 
emission standards under CAA section 202(a)(1) further supports the 
understanding that Congress did not design that provision to authorize 
or require the Administrator to prescribe standards in response to 
global climate change concerns. In addition, we conclude that the 
futility of the GHG emission standards renders maintaining such 
regulations unreasonable, separate and apart from the validity of the 
Endangerment Finding, because the enormous costs imposed do not 
materially further public health or welfare. Under any legal standard, 
it is unreasonable for the EPA to impose trillions of dollars in costs 
on manufacturers and American consumers in exchange for results that do 
not materially further congressional objectives--at least absent an 
extraordinarily clear indication in the statutory text. We briefly 
summarize public comments received on these aspects of the proposal and 
set out our general responses, including the assertion by some 
commenters that Massachusetts requires EPA to ignore the practical 
effect of its regulations when making findings under CAA section 
202(a)(1) and when promulgating the regulations required by such 
findings.
    Section VI of this preamble describes the additional bases in the 
proposal that we are not finalizing in this action, including the 
alternative basis in section IV.B of the preamble to the proposed rule 
that the Administrator exercise discretion under CAA section 202(a)(1) 
to rescind the Endangerment Finding and repeal associated regulations 
by making a superseding finding. We received comments in support of 
this alternative basis, including from commenters asserting that the 
EPA compiled and analyzed the scientific record unreasonably in 2009 by 
severing the analysis of endangerment and contribution and issuing 
findings separately from emission standards and from commenters 
asserting that the scientific record did not then, or does not now, 
provide the certainty necessary to make such findings. We also received 
comments in opposition to this alternative basis, including from 
commenters asserting that the scientific record supporting the findings 
is ``overwhelming'' and has been strengthened in the intervening years. 
Although the Administrator continues to harbor concerns regarding many 
of the scientific inputs and analyses underlying the Endangerment 
Finding, we are not finalizing this alternative given our conclusion 
that the EPA lacks statutory authority to regulate in response to 
global climate change concerns under CAA section 202(a)(1). The legal 
interpretation finalized in this action means that we cannot resolve 
remaining scientific controversies in this regulatory context and 
renders it unnecessary and inappropriate to invoke the Administrator's 
authority to exercise judgment on these questions under that 
provision.\8\ Furthermore, we explain that we are not finalizing 
several of the additional bases for repealing GHG emission standards 
set out in section V of the preamble to the proposed rule, which are 
similarly unnecessary given the predicate conclusion on the scope of 
our authority under CAA section 202(a)(1). We briefly summarize the 
input received on these alternatives in the interests of transparency 
and public engagement but are not responding to comments on these 
specific issues, which are outside the scope of the bases for this 
final action.
---------------------------------------------------------------------------

    \8\ For similar reasons, and in light of concerns raised by some 
commenters about the draft report authored by the U.S. Department of 
Energy's Climate Working Group (CWG), the EPA is not relying on the 
May 27, 2025 CWG draft report entitled ``Impact of Carbon Dioxide 
Emissions on the U.S. Climate'' or the July 23, 2025 CWG report 
entitled ``A Critical Review of Impacts of Greenhouse Gas Emissions 
on the U.S. Climate'' for any aspect of this final action.
---------------------------------------------------------------------------

    Section VIII of this preamble details the scope of the repeals, 
including its relationship to distinct regulatory programs and Federal 
preemption, the revisions to 40 CFR parts 85, 86, 600, 1036, 1037, and 
1039 required to effectuate repeal of all new motor vehicle and engine 
GHG emission standards, and conforming adjustments to regulatory 
provisions that we did not reopen or propose to substantively revise. 
Specifically, we are not changing

[[Page 7692]]

elements of the regulations that are necessary for programs unrelated 
to the GHG emission standards, including emission standards for 
criteria pollutants, emission standards for hazardous air pollutants, 
or regulatory provisions related to the EPA's statutory role in vehicle 
fuel-economy standards administered by the National Highway Traffic 
Safety Administration (NHTSA).
    As explained in detail below, the conclusions presented in sections 
V.A, V.B, and V.C of this preamble provide independent grounds for 
rescinding the 2009 Endangerment Finding and repealing the GHG emission 
standards. Moreover, the conclusions in section V.A of this preamble--
that ``air pollution'' as used in CAA section 202(a)(1) is best read as 
pollution that threatens public health or welfare through local or 
regional exposure; that the Administrator cannot trigger the duty to 
regulate without analyzing and promulgating standards; and that the 
finding of endangerment cannot be severed from the finding of causation 
of contribution--are all also independent conclusions that stand on 
their own. Each basis for this final action presented in section V of 
this preamble is severable, and each basis alone provides sufficient 
justification to rescind the Endangerment Finding and repeal the GHG 
emission standards for new motor vehicles and engines. If any basis is 
determined in the course of judicial review to be invalid, that partial 
invalidation will not affect the other bases, and the EPA intends the 
remainder of this final action stand on the remaining basis or bases.
    This preamble includes an overview of the EPA's rationale, 
including several technical documents developed in support of this 
final action, as well as summaries of comments received during the 
public hearing on the proposal, additional consultation and listening 
sessions, and via the rulemaking docket. For a full summary of comments 
received and our complete responses thereto, please see the ``Response 
to Comments'' document available in the docket for this rulemaking.\9\ 
The final Regulatory Impact Analysis (RIA) for this rulemaking, on 
which we did not rely for any aspect of this final action, is also 
available in the docket for this rulemaking.\10\
---------------------------------------------------------------------------

    \9\ ``Rescission of the Greenhouse Gas Endangerment Finding and 
Motor Vehicle Greenhouse Gas Emission Standards Under the Clean Air 
Act: Response to Comments.'' EPA 420-R-26-003. February 2026.
    \10\ ``Rescission of the Greenhouse Gas Endangerment Finding and 
Motor Vehicle Greenhouse Gas Emission Standards Under the Clean Air 
Act: Regulatory Impact Analysis.'' EPA-420-R-26-002. February 2026.
---------------------------------------------------------------------------

B. Need for Regulatory Action

    Immediately upon taking office in 2025, President Trump established 
as the policy of the United States new Executive Branch priorities for 
energy, transportation, and consumer choice and committed agencies to 
ensuring regulations remain within constitutional and statutory bounds. 
On January 20, 2025, the President issued E.O. 14154, entitled 
``Unleashing American Energy,'' to address the burdens placed by 
unnecessary regulations on energy affordability, job creation, and 
national security.\11\ The President directed the Administrator to 
submit recommendations to the Director of the Office of Management and 
Budget (OMB) on the legality and continuing applicability of the 2009 
Endangerment Finding.\12\ On February 19, 2025, the President issued 
E.O. 14219, entitled ``Ensuring Lawful Governance and Implementing the 
President's `Department of Government Efficiency' Deregulatory 
Initiative,'' which further instructed agencies, including the EPA, to 
review existing regulations for consistency with the Constitution and 
the best reading of the authorizing statute.\13\
---------------------------------------------------------------------------

    \11\ Executive Order 14154, 90 FR 8353 (Jan. 29, 2025).
    \12\ Id. section 6(f).
    \13\ Executive Order 14219, 90 FR 10583 (Feb. 25, 2025).
---------------------------------------------------------------------------

    Upon confirmation by the Senate, Administrator Lee Zeldin committed 
the EPA to prioritizing its core statutory missions and ensuring that 
all regulatory actions are clearly grounded in statutory authority and 
the best reading of the law. As part of these efforts, and consistent 
with E.O. 14154, the Administrator initiated a review of the legality 
and applicability of the Endangerment Finding. On February 19, 2025, 
the Administrator submitted a memorandum to the OMB Director 
recommending that the EPA reconsider the Endangerment Finding to 
address legal and scientific developments that appeared to undermine 
the bases for that action and subsequent regulations.\14\ The 
Administrator noted that recent Supreme Court decisions, including 
Loper Bright, West Virginia, UARG, and Michigan v. EPA, 576 U.S. 743 
(2015), provided further instruction as to how we should interpret and 
apply the statutes Congress entrusted us to administer.\15\ The 
Administrator further noted that the Endangerment Finding recognized 
significant uncertainties in its conclusions and assumptions that 
should be evaluated in light of more recent empirical data and 
scientific evidence.\16\ Accordingly, the Administrator announced on 
March 12, 2025, that the EPA would reconsider the Endangerment Finding 
and subsequent actions to determine whether our GHG regulations have an 
adequate statutory basis and to seek public input on developments since 
2009.\17\
---------------------------------------------------------------------------

    \14\ Memorandum from Lee Zeldin, Administrator, U.S. 
Environmental Protection Agency, to Russell Vought, Director, Office 
of Management and Budget (Feb. 19, 2025) (Feb. 19, 2025 Memo), 
available in the docket for this rulemaking.
    \15\ Id. at 1.
    \16\ Id. at 8.
    \17\ ``Trump EPA Kicks Off Formal Reconsideration of 
Endangerment Finding with Agency Partners'' (Mar. 12, 2025), 
available at https://www.epa.gov/newsreleases/trump-epa-kicks-formal-reconsideration-endangerment-finding-agency-partners.
---------------------------------------------------------------------------

    On July 29, 2025, the Administrator signed a proposed rule setting 
out the results of the EPA's reconsideration to date and proposing to 
rescind the Endangerment Finding and repeal all GHG emission standards 
for LD, MD, and HD new motor vehicles and engines promulgated since 
2009 under CAA section 202(a)(1). ``Reconsideration of 2009 
Endangerment Finding and Greenhouse Gas Vehicle Standards,'' 90 FR 
36288 (Aug. 1, 2025). We proposed that the term ``air pollution'' in 
CAA section 202(a)(1) is best read in context as referring to pollution 
that threatens public welfare through local or regional exposure, 
consistent with historical practice and principles of proximate cause, 
such that the EPA's regulatory authority does not extend to global 
climate change concerns. Relatedly, we proposed that the major 
questions doctrine applies to the question whether the EPA may decide 
the Nation's policy response to global climate change concerns and that 
Congress did not clearly delegate that decision when it authorized the 
Agency to prescribe emission standards for new motor vehicles and 
engines. We also proposed that the Endangerment Finding departed from 
the statute in additional ways by asserting ``procedural discretion'' 
to issue findings separately from the required standards and severing 
the question whether GHG emissions from motor vehicles and engines 
contribute to increases in global GHG concentrations from the question 
whether cumulative global GHG concentrations endanger public health and 
welfare.
    In the alternative, we proposed that the Administrator exercise 
discretion under CAA section 202(a)(1) to issue a new finding that the 
conclusions reached in the Endangerment Finding

[[Page 7693]]

are not supported by the scientific record, including because the EPA 
unreasonably compiled and analyzed the record in 2009 and because 
intervening developments have cast significant doubt on the 
Endangerment Finding's core premises and assumptions. For example, we 
proposed that data from 2009-2024 demonstrate that many of the 
predictive analyses relied upon in the Endangerment Finding were overly 
pessimistic and underestimated the ability of natural processes to 
compensate for the identified trends.
    Finally, we proposed three alternative bases to repeal the GHG 
emission standards separate and apart from the proposed rescission of 
the Endangerment Finding. First, we proposed that there is no 
``requisite technology,'' as required for emission standards to go into 
effect under CAA section 202(a)(2), that is capable of having a 
measurable impact on the global climate change concerns that were the 
basis of the Endangerment Finding. Second, we proposed that the 
Agency's GHG regulatory program is futile because emissions from 
covered vehicles have a de minimis impact on global climate change 
concerns and that this consideration bears on the proper interpretation 
and implementation of CAA section 202(a)(1). Third, we proposed that 
the GHG emission standards harm public health and welfare on balance by 
increasing prices and decreasing consumer choice, thereby slowing the 
replacement of older vehicles that are less safe and emit a greater 
volume and variety of air pollutants. We sought comment on these and 
additional issues throughout the proposal, including the EPA's 
authority to reconsider and rescind the Endangerment Finding, relevant 
data and information bearing on the efficacy of the GHG emission 
standards, and any additional reasons we should consider for repealing 
or retaining the Endangerment Finding and associated regulations.

C. Summary of Comments and Updates From the Proposal in This Final 
Action

    This final action is informed by the significant public input 
received from a diverse array of stakeholders since publication of the 
proposal in the Federal Register on August 1, 2025. The EPA extended 
the original comment deadline of September 15, 2025, to September 22, 
2025.\18\ To facilitate participation, we held four days of virtual 
public hearings on August 19 through August 22, 2025, during which we 
heard oral testimony from more than 600 speakers. Consistent with the 
EPA's Tribal Consultation Policy, we also invited all federally 
recognized Tribes to participate in consultation, which resulted in 
four consultation sessions in addition to oral testimony and written 
submissions from several federally recognized Tribes and tribal 
organizations. For more information on public participation, see the 
public hearing, tribal consultation, and meeting summaries available in 
the docket for this rulemaking.
---------------------------------------------------------------------------

    \18\ 90 FR 39345 (Aug. 15, 2025).
---------------------------------------------------------------------------

    The EPA received approximately 572,000 written comments from more 
than 31,000 unique entities and 169 mass letter writing campaigns 
during the public comment period, including written submissions 
received in connection with the public hearing and Tribal consultation 
sessions. The EPA considered all input received during the public 
comment period in evaluating this final action, and all written 
comments, as well as a transcript of the public hearing, are available 
in the docket for this rulemaking.\19\ Given the significant volume of 
comments received, this preamble includes summaries of relevant 
comments in the appropriate subsection, along with summaries of the 
EPA's responses. For more detailed descriptions of comments received 
and our responses, see the Response to Comments document available in 
the docket for this rulemaking.\20\
---------------------------------------------------------------------------

    \19\ See 42 U.S.C. 7607(d)(1)(C), (d)(4)(B)(i), (d)(5)-(6). Note 
that although all public comments are posted in the docket, the EPA 
has not considered or responded separately to comments received 
after the close of the comment period on September 22, 2025.
    \20\ ``Rescission of the Greenhouse Gas Endangerment Finding and 
Motor Vehicle Greenhouse Gas Emission Standards Under the Clean Air 
Act: Response to Comments.'' EPA 420-R-26-003. February 2026.
---------------------------------------------------------------------------

1. Issues Raised Regarding the Rulemaking Process
    The EPA received comments on rulemaking process, including with 
respect to the length of the comment period and the content of the 
proposed rule. The EPA notes that most commenters did not raise 
concerns with these aspects of the rulemaking process and believes that 
the large volume of comments received and extensive participation in 
the public hearing demonstrate that interested stakeholders were able 
to submit views, data, and information for consideration. Below, we 
summarize comments received on the rulemaking process along with our 
responses.
    Comment: Many commenters appreciated the chance to weigh in on the 
underlying science relevant to the Endangerment Finding and regulations 
under CAA section 202(a)(1) for the first time since 2009 and asserted 
that the rulemaking process allowed ample public participation and was 
consistent with statutory requirements.
    Response: The EPA appreciates and agrees with these comments. As 
discussed in the proposed rule, we believe that public participation on 
regulatory issues of this magnitude is essential to good government. 
Because we are not finalizing many of the alternative bases for the 
proposed rescission and repeals, this final action does not resolve or 
substantively respond in full to issues raised in public comments that 
are outside the scope of the bases finalized in this action. We look 
forward to further engagement on these additional topics in the future. 
For further discussion of the alternative bases we are not finalizing, 
please see section VI of this preamble and the Response to Comments 
document.
    Comment: Other commenters argued that we should have provided a 
longer comment period, including a comment period of up to six months, 
given the scope of this rulemaking and significant public interest in 
the underlying issues. Some of these commenters suggested that the 
statute requires providing a ``reasonable'' period for public comment. 
Others pointed to language in E.O. 12866 providing that ``a meaningful 
opportunity to comment on any proposed regulation . . . should include 
a comment period of not less than 60 days.''
    Response: The EPA disagrees with these comments. The significant 
volume of comments received during the comment period, as well as the 
number of participants in the four-day public hearing, demonstrate that 
the interested public had a reasonable opportunity to participate in 
this rulemaking by engaging with the EPA. The public comment period 
fully satisfied the CAA's detailed requirements for public 
participation. For example, CAA section 307(d)(5) requires that the 
Administrator allow ``thirty days after completion of the [public 
hearing] to provide an opportunity for submission of rebuttal and 
supplementary information,'' \21\ and CAA section 307(h) states the 
intent of Congress that the Administrator ``ensure a reasonable period 
for public participation of at least 30 days.'' \22\ With respect to 
E.O. 12866, we note that the language cited generally tracks the less 
detailed rulemaking provisions of the

[[Page 7694]]

Administrative Procedure Act (APA) rather than the specific processes 
Congress established as applicable to this rulemaking in CAA section 
307(d), and is intended as non-binding, general guidance for agency 
rulemakings that yields to more specific statutes and 
circumstances.\23\
---------------------------------------------------------------------------

    \21\ See 42 U.S.C. 7607(d)(5).
    \22\ See 42 U.S.C. 7607(h).
    \23\ See 58 FR 51735, 51740 (Oct. 4, 1993) (providing that 
``each agency should afford the public a meaningful opportunity to 
comment on any proposed regulation, which in most cases should 
include a comment period of not less than 60 days'') (emphases 
added).
---------------------------------------------------------------------------

    Comment: Some commenters asserted that the proposed rule was 
procedurally flawed under CAA section 307(d)(3) for various reasons, 
including the assertion that we should have directly referenced, 
summarized, and included in the docket pertinent findings by the 
National Academy of Sciences (NAS). These commenters asserted that we 
should repropose with additional discussion of NAS materials, which, 
they assert, are central to the rulemaking.
    Response: The EPA disagrees that the proposal was procedurally 
flawed in any manner that impacts this final action. The statement of 
basis and purpose included in the proposal satisfied the requirements 
of CAA section 307(d)(3)(A)-(C) by including not only the factual data, 
methodology, and major legal interpretations and policy considerations 
relevant to the proposal, but also a detailed discussion of relevant 
factual and legal developments since 2009 impacting the EPA's 
reconsideration.\24\ With respect to the NAS, the statute references 
only ``pertinent findings, recommendations, and comments'' by the NAS 
and discussion of differences from the proposal only when it ``differs 
in any important respect.'' \25\ In section IV.B of the preamble to the 
proposed rule, we explained that the Administrator had considered the 
most recently available scientific information, including assessments 
by the U.S. Global Change Research Program (USGCRP) and United Nations 
Intergovernmental Panel on Climate Change (IPCC). With respect to 
discussion of global climate change concerns, the NAS findings cited by 
these commenters or in previous EPA rulemakings rely upon, and are 
duplicative of, these assessments.\26\ In other respects, the NAS 
findings deal with matters that were not pertinent to the substance of 
the proposal, including particular emissions-reduction 
technologies,\27\ matters pertaining to criteria pollutant 
standards,\28\ and how to utilize Social Cost of Carbon (SCC) 
methodologies in an RIA or similar analysis.\29\
---------------------------------------------------------------------------

    \24\ 42 U.S.C. 7607(d)(3)(A)-(C).
    \25\ 42 U.S.C. 7607(d)(3).
    \26\ See, e.g., 88 FR 29184, 29208, 29394 (May 5, 2023) 
(proposed HD GHG emission standards) (briefly citing NAS findings 
together with USGCRP and IPCC reports). To the extent commenters 
cited or intended to reference the September 2025 report developed, 
published, and submitted by the NAS during the comment period for 
the purposes of informing this rulemaking, we note that the 
Administrator could not have considered the September 2025 report 
when signing the proposal in July 2025.
    \27\ See, e.g., 88 FR 29284-86 (discussing NAS findings on 
challenges and advantages associated with particular technologies 
for reducing vehicle emissions). The EPA notes that none of the 
bases finalized in this action, including the futility basis 
discussed in section V of this preamble, turn on the relative 
advantages of particular technologies in reducing GHG emissions from 
vehicles and engines. Rather, we are finalizing that GHG emission 
standards under CAA section 202(a)(1) do not have more than a de 
minimis impact on the health and welfare dangers identified in the 
Endangerment Finding because even the complete elimination of GHG 
emissions from new and existing LD, MD, and HD vehicles would not 
materially impact GMST or GSLR as a proxy for adverse impacts to 
public health and welfare.
    \28\ See, e.g., 88 FR 29224 (discussing NAS materials related to 
particulate matter, ozone, NOX, sulfur oxides 
(SOX), and hazardous air pollutants). As noted at 
proposal, the EPA is not addressing criteria emission standards in 
this rulemaking, and incidental co-benefits of GHG emission 
standards are not pertinent to the legal bases on which we are 
relying in this final action.
    \29\ See, e.g., 88 FR 29370-72 (discussing methodologies for 
estimating and utilizing SCC). As noted at proposal, the EPA has 
consistently viewed criticisms of the SCC methodology as out of 
scope because it played no role in the Endangerment Finding and is 
not relevant to the statutory standard for regulation under CAA 
section 202(a). Moreover, the U.S. Government is no longer using the 
SCC methodology for purposes of estimating costs and benefits.
---------------------------------------------------------------------------

    In any event, commenters did not identify NAS materials pertinent 
to the bases on which we are relying in this final action. Whether CAA 
section 202(a)(1) authorizes the EPA to regulate in response to global 
climate change concerns by prescribing emission standards is a matter 
of statutory interpretation, not scientific analysis within the NAS's 
purview. As explained in section VI of this preamble, we are not 
finalizing the alternative proposal to base the rescission and repeals 
on a new finding by the Administrator under CAA section 202(a)(1). We 
note that the NAS developed and submitted during the public comment 
period for this rulemaking a new report responding to the concerns 
underlying the alternative proposal.\30\ This submission and additional 
NAS materials regarding the science of climate change are not pertinent 
to the bases for this final action, which are legal in nature and rest 
on statutory interpretation, application of judicial precedent, and 
legal conclusions drawn from modeling generally accepted for purposes 
of predicting impacts within the causal framework endorsed by the 
Endangerment Finding. As discussed in section V.C of this preamble, the 
NAS has expressed approval for and encouraged the development of the 
underlying models the EPA is using in this action to evaluate comments 
received on futility and reach conclusions about the impact of futility 
on the legality of the Endangerment Finding and associated GHG emission 
standards.
---------------------------------------------------------------------------

    \30\ See Comment ID EPA-HQ-OAR-2025-0194-0756, NAS 2025, 
``Effects of Human-Caused Greenhouse Gas Emissions on U.S. Climate, 
Health, and Welfare.'' Washington, DC: The National Academies Press.
---------------------------------------------------------------------------

    Comment: Additionally, some commenters asserted that the proposed 
rule should have been made available to the Science Advisory Board 
(SAB) before publication. These commenters asserted that SAB input is 
centrally relevant to the rulemaking but generally acknowledged that 
the EPA did not submit the Endangerment Finding or subsequent 
reconsideration denials in 2010 and 2022 to the SAB for prior review.
    Response: By statute, the Administrator is to make available to the 
SAB ``any proposed criteria document, standard, limitation, or 
regulation'' when such material ``is provided to any other Federal 
agency for formal review and comment.'' \31\ The proposal for this 
rulemaking, which sought comment on rescinding the Endangerment Finding 
and related GHG emission standards, was not a ``criteria document, 
standard, limitation, or regulation'' that would impose obligations on 
the EPA or any regulated entities if finalized. We note that the EPA 
used the same interpretation to propose and finalize the Endangerment 
Finding, as well as issue the 2010 and 2022 denials of petitions for 
reconsideration, without prior SAB review. Whereas those actions 
obligated and maintained the obligation for the EPA to issue GHG 
emission standards that are subject to SAB review, the actions 
contemplated in the proposal would relieve the Agency of the obligation 
to maintain and issue regulations with SAB input as well as ongoing 
obligations for regulated parties. Nor did we submit the proposal to 
``any other Federal agency for formal review and comment.'' The EPA has 
previously taken the position that ``formal'' consultation is not 
required for CAA section 202(a)(1) actions and that informal 
interagency review as part of the non-statutory E.O. 12866 process is

[[Page 7695]]

not encompassed within the statutory term ``formal review and 
comment.'' \32\
---------------------------------------------------------------------------

    \31\ 42 U.S.C. 4365(c)(1).
    \32\ See Resp. Br. 75-79, Delta Constr. Co. v. EPA, No. 11-1428 
(filed Nov. 24, 2014); Coal. for Responsible Regulation, Inc. v. 
EPA, 684 F.3d 102, 124 (D.C. Cir. 2012), reversed in part in UARG, 
573 U.S. 302 (noting ``it is not clear that EPA provided the 
Endangerment Finding'' to any other agency and that petitioners 
failed to respond to the argument).
---------------------------------------------------------------------------

    Given the nature of the proposal and the legal bases on which the 
EPA relies in this final action, the possibility of SAB review is not 
material to the outcome of this rulemaking. Because we conclude that 
CAA section 202(a)(1) does not authorize the EPA to regulate in 
response to global climate change concerns, this final action does not 
turn on scientific findings made with respect to the validity, 
certainty, or extent of global climate change. We note that the D.C. 
Circuit has previously determined that failing to secure SAB review of 
the Endangerment Finding was not ``of such central relevance'' that 
there is a ``substantial likelihood'' the action ``would have been 
significantly changed'' absent such failure.\33\ Commenters provided no 
reason to conclude that SAB review of this rulemaking to rescind the 
Endangerment Finding would be of central relevance for the first time, 
particularly given the ample recommendations already provided on 
previously promulgated GHG emission standards and the legal nature of 
the rationales being finalized.
---------------------------------------------------------------------------

    \33\ Coal. for Responsible Regulation, 684 F.3d at 124 (quoting 
42 U.S.C. 7607(d)(8)); see also Am. Petrol. Inst. v. Costle, 665 
F.2d 1176, 1188-89 (D.C. Cir. 1981) (similar with respect to ozone 
standard not submitted for SAB review).
---------------------------------------------------------------------------

    Comment: Finally, commenters offered competing positions on the 
EPA's proposal to rescind the 2022 and 2010 denials of petitions for 
reconsideration entitled ``Endangerment and Cause or Contribute 
Findings for Greenhouse Gases Under Section 202(a) of the Clean Air 
Act; Final Action on Petitions,'' 87 FR 25412 (Apr. 29, 2022), and 
``EPA's Denial of the Petitions to Reconsider the Endangerment and 
Cause or Contribute Finding for Greenhouse Gases Under Section 202(a) 
of the Clean Air Act,'' 75 FR 49556 (Aug. 13, 2010).\34\ Supportive 
commenters argued that the 2022 and 2010 petitions raised a variety of 
valid procedural, legal, scientific, and transparency-related issues 
with the Endangerment Finding. Conversely, adverse commenters asserted 
that the EPA erred in proposing to rescind the petition denials at the 
same time as proposing to rescind the Endangerment Finding, which was 
the subject of the petitions for reconsideration. These commenters 
argued that we lack authority to rescind a petition denial and provided 
insufficient rationale in the proposal to support such a rescission.
---------------------------------------------------------------------------

    \34\ As noted at proposal, the 2022 petition denials included a 
notice of decision in the Federal Register, brief letters 
communicating the denials to the petitioners, and a decision 
document entitled ``EPA's Denial of Petitions Relating to the 
Endangerment and Cause or Contribute Findings for Greenhouse Gases 
Under Section 202(a) of the Clean Air Act'' (Apr. 21, 2022) (``2022 
Denials''), available online at https://www.epa.gov/system/files/documents/2022-04/decision_document.pdf.
---------------------------------------------------------------------------

    Response: The EPA appreciates the comments received on this issue 
and is taking the opportunity to clarify that the 2022 and 2010 
reconsideration petition denials no longer represent the Agency's views 
and should not be relied upon for any statements inconsistent with this 
final action. As explained at proposal, the petition denials already 
had no prospective legal effect and were not binding on the EPA or 
interested parties. We proposed to rescind the petition denials along 
with the Endangerment Finding and associated GHG emission standards to 
promote consistency and avoid confusion, as the petition denials relied 
in large part on the prior positions in those actions that we proposed 
to abandon. In this final action, we are repudiating the EPA's 
positions since 2009 to the extent and for the reasons set out in 
section V of this preamble. We are also finalizing rescission of the 
petition denials because those decisions affirmed the same legal 
positions and, moreover, decided scientific questions that are 
unnecessary and inappropriate for the Agency to address under CAA 
section 202(a)(1). For discussion of the EPA's authority to reconsider 
prior actions unless provided otherwise by the governing statute, see 
section IV of this preamble.
2. Updates From the Proposal in This Final Action
    The EPA received supportive and adverse comments on virtually all 
substantive aspects of the proposal from a wide variety of 
stakeholders, including vehicle and engine manufacturers and suppliers, 
nearly all 50 States and the District of Columbia, elected 
representatives at the local, State, and Federal levels (including many 
members of the U.S House of Representatives and the U.S. Senate), 
consumer and labor groups, EV advocates, manufacturers, and suppliers, 
educational institutions, environmental groups, and individual 
citizens. With respect to the primary basis for the proposed repeal, we 
received detailed comments offering legal arguments for and against our 
proposed interpretation of the statute and the applicability and impact 
of the major questions doctrine. With respect to the alternative bases 
for the proposed repeal, we received extensive data, models, and 
arguments on virtually every aspect of climate science and climate 
impacts discussed at proposal. Submissions related to the alternative 
climate science basis for rescission and repeal in section IV.B of the 
preamble to the proposed rule constituted the largest share of public 
comments received. Commenters also submitted substantial information in 
response to our request for comment on the alternative rationales in 
section V of the preamble to the proposed rule, including data and 
modeling addressing the historical and potential impacts of GHG 
emission standards under CAA section 202(a)(1) on the global climate 
change concerns animating the Endangerment Finding, such as trends in 
GMST and GSLR.
    The EPA is finalizing the primary basis for the rescission and 
repeals as proposed for the reasons stated in section V of this 
preamble. We conclude that the best reading of the statute does not 
authorize the EPA to prescribe GHG emission standards based on global 
climate change concerns and, moreover, that EPA erred in issuing the 
Endangerment Finding as a standalone action that severed the 
consideration of endangerment from the consideration of contribution 
and failed to engage with the standards that must issue when making 
such a finding. We further conclude, as proposed, that the major 
questions doctrine applies and bars the EPA from asserting the 
authority to decide the Nation's policy response to global climate 
change concerns, including by attempting to force a shift to EVs, based 
on language authorizing the Agency to prescribe emission standards. 
Finally, we conclude that the inability of GHG emission standards under 
CAA section 202(a)(1) to measurably impact the global climate change 
concerns identified in the Endangerment Finding further supports our 
interpretation of the statute and provides an additional reason to 
repeal the GHG emission standards.
    In light of these conclusions, and as discussed further in section 
VI of this preamble, the EPA is not finalizing the alternative proposed 
bases for rescission and repeal. The robust public response to the 
alternative climate science basis revealed ongoing disagreement among 
commenters with respect to aspects of the scientific analysis 
underpinning the Endangerment Finding, including the certainty of the 
causal chain, the extent of endangerment attributable to U.S. new motor 
vehicle and engine

[[Page 7696]]

emissions, the countervailing domestic benefits of global climate 
change, and the capacity of natural and human systems to adapt and 
mitigate potential adverse impacts and the relevance of such topics to 
the analysis. However, we conclude that the EPA lacks statutory 
authority to regulate GHG emissions from new motor vehicles and engines 
in the first instance under CAA section 202(a)(1). Accordingly, 
although the Administrator continues to harbor concerns regarding the 
scientific determinations underlying the 2009 Endangerment Finding, we 
cannot resolve these questions under our regulatory authority in CAA 
section 202(a)(1), and comments received on these subjects are outside 
the scope of this final action. Similarly, the EPA's lack of authority 
to regulate GHG emissions from new motor vehicles and engines places 
comments on the alternative bases for repealing the standards--
including the ``requisite technology'' requirement in CAA section 
202(a)(2) and additional factors relative to standards-setting--outside 
the scope of this final action.
    This final action removes all existing regulations that require new 
motor vehicle and engine manufacturers to measure, report, or comply 
with GHG emission standards. Specifically, the EPA is removing 
regulations in 40 CFR parts 85, 86, 600, 1036, and 1037 pertaining to 
the control of GHG emissions from LD, MD, and HD new motor vehicles and 
engines, including emission standards; test procedures; averaging, 
banking, and trading (ABT) requirements; reporting requirements; and 
fleet-average emission requirements.\35\ As a result of these changes, 
motor vehicle and engine manufacturers no longer have future or current 
obligations for the measurement, control, or reporting of GHG emissions 
for any vehicle or engine, including for previously manufactured MYs. 
However, we did not reopen or modify any regulations necessary for 
criteria pollutant and air toxic measurement and standards, Corporate 
Average Fuel Economy (CAFE) testing, and associated fuel economy 
labeling requirements.
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    \35\ ``Light-Duty Vehicle Greenhouse Gas Emission Standards and 
Corporate Average Fuel Economy Standards,'' 75 FR 25324 (May 7, 
2010); ``Greenhouse Gas Emissions Standards and Fuel Efficiency 
Standards for Medium- and Heavy-Duty Engines and Vehicles,'' 76 FR 
57106 (Sept. 15, 2011); ``2017 and Later Model Year Light-Duty 
Vehicle Greenhouse Gas Emissions and Corporate Average Fuel Economy 
Standards,'' 77 FR 62624 (Oct. 15, 2012); ``Greenhouse Gas Emissions 
and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and 
Vehicles-Phase 2,'' 81 FR 73478 (Oct. 25, 2016); ``The Safer 
Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-
2026 Passenger Cars and Light Trucks,'' 85 FR 24174 (Apr. 30, 2020); 
``Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse 
Gas Emissions Standards,'' 86 FR 74434 (Dec. 30, 2021); ``Multi-
Pollutant Emissions Standards for Model Years 2027 and Later Light-
Duty and Medium-Duty Vehicles,'' 89 FR 27842 (Apr. 18, 2024) (2024 
LD and MD Multi-Pollutant Emission Standards Rule); ``Greenhouse Gas 
Emissions Standards for Heavy-Duty Vehicles-Phase 3,'' 89 FR 29440 
(Apr. 22, 2024) (2024 HD GHG Emission Standards Rule).
---------------------------------------------------------------------------

    The EPA received comments from stakeholders related to the proposed 
revisions to the engine and vehicle GHG regulations. In general, we are 
finalizing the vast majority of the proposed regulatory changes for LD 
and MD engines and vehicles. For HD engines and vehicles, we are 
removing the GHG emission standards and related certification and 
compliance procedures, as proposed. However, in a change from the 
proposal, we are retaining the test procedures and compliance 
regulatory elements in the EPA regulations referenced by NHTSA in their 
regulatory program such that NHTSA can continue to implement its HD 
fuel efficiency program. Relevant comments and our responses are 
summarized in section VII of this preamble and the Response to Comments 
document accompanying this final action.
    The EPA also received comments on our analyses included in the 
Draft Regulatory Impact Analysis (DRIA). A summary of these comments 
and the EPA's responses is included in the Response to Comments 
document accompanying this final action. The EPA made a number of 
updates to the analyses included in the final RIA, which is available 
in the docket for this rulemaking.

III. Background

A. The EPA's Historical Approach to CAA Section 202(a)(1)

    Congress originally enacted the language that became CAA section 
202(a)(1) as part of the Motor Vehicle Pollution Control Act of 1965, 
which required the Secretary of Health, Education, and Welfare to 
``prescribe . . . standards, applicable to the emission of any kind of 
substance, from any class or classes of new motor vehicles or new motor 
vehicle engines, which in his judgment cause or contribute to, or are 
likely to cause or contribute to, air pollution which endangers the 
health or welfare of any persons.'' \36\ Congress retained this 
language, while adding additional requirements for the content of 
emission standards, in the Air Quality Act of 1967,\37\ and, later, 
incorporated it into the Clean Air Act of 1970, which transferred the 
Secretary's regulatory authority to the newly created EPA and directed 
the Agency to issue standards that achieved significant reductions in 
certain criteria pollutants in the near-term.\38\ Separately, the 1970 
CAA addressed emissions from existing vehicles and engines, stationary 
sources, and aircraft engines.\39\ In the following decades, Congress 
repeatedly amended CAA section 202 to specify particular regulatory 
goals and to require the EPA to regulate certain pollutants. Some of 
these provisions instructed the EPA to use CAA section 202(a)(1) in 
particular ways, while others separately directed the regulation of 
specified classes of vehicles or engines or specified air pollutants. 
As subsequently amended,\40\ CAA section 202 has remained a critical 
part of the comprehensive national framework for regulating air 
pollution, with Title II authorities for mobile sources working in 
tandem with the National Ambient Air Quality Standards (NAAQS) program 
and Title I authorities for stationary sources.\41\ Emission standards 
issued under CAA section 202 trigger requirements and enforcement 
mechanisms that can impose substantial liabilities on manufacturers and 
other regulated parties. Additional provisions in Title II prohibit 
selling, importing, or marketing vehicles and engines not in compliance 
with applicable emission standards, with violations subject to 
injunctive relief and significant monetary penalties.\42\
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    \36\ Public Law 89-272, section 202(a), 79 Stat. 992, 992-93 
(1965).
    \37\ Public Law 90-148, section 202(a), 81 Stat. 485, 499 
(1967).
    \38\ Public Law 91-604, 84 Stat. 1690 (1970).
    \39\ Id.
    \40\ In the CAA Amendments of 1977, Congress replaced the phrase 
``which endangers the public health or welfare'' with ``which may 
reasonably be anticipated to endanger public health or welfare.'' 
Public Law 95-95, section 401(d)(1), 91 Stat. 685, 791 (1977); 
Public Law 101-549, section 203, 104 Stat. 2399, 2474 (1990).
    \41\ See West Virginia, 597 U.S. at 707-11 (describing the 
relationship among the CAA's Title I programs).
    \42\ 42 U.S.C. 7522-24. By regulation, the EPA has established a 
number of compliance and enforcement mechanisms specific to 
particular emission standards regimes, including GHG emission 
standards. For example, we have adopted a credit system whereby 
regulated parties that do not achieve the standards for a particular 
MY may carry forward a deficit for a certain number of years, 
provided that the entity overcomply in future years or purchase 
credits to make up for the prior shortfall. 40 CFR 86.1865-12.
---------------------------------------------------------------------------

    In its first four decades administering the statute, the EPA 
invoked CAA section 202(a)(1) relatively infrequently and, in each 
case, to address local and regional air pollution problems through 
rulemakings that both prescribed

[[Page 7697]]

standards and set forth the Administrator's findings that the relevant 
air pollutant emissions cause, or contribute to, air pollution which 
may reasonably be anticipated to endanger public health or welfare.\43\ 
From 1965 to 2009, we invoked CAA section 202(a)(1) in at least fifteen 
final rules governing LD, MD, and HD vehicle and engine and motorcycle 
emissions of hydrocarbons (HC) and other volatile organic compounds 
(VOCs), carbon monoxide (CO), oxides of nitrogen (NOX), 
particulate matter (PM), and certain air toxics.\44\ Where possible, we 
relied in these final rules on more specific authorities provided 
elsewhere in CAA section 202, including subsections (a)(3)(B)-(D) for 
HD vehicles, (a)(3)(E) for motorcycles, and (l) for air toxics. Each of 
these regulations involved criteria pollutants or compounds that 
Congress expressly enumerated in CAA section 202 through iterative 
statutory amendments and addressed in additional provisions throughout 
the statute.\45\ We hewed closely to the vehicle and engine emission 
air pollution problems that Congress itself identified and did not use 
CAA section 202(a)(1) to expand into new regulatory arenas. As further 
explained in the following subsections, the EPA maintained this 
approach until 2009 and never invoked CAA section 202(a)(1) to regulate 
in response to global climate change concerns during this period.
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    \43\ See 74 FR 66501, 66527, 66538, 66543 (Dec. 15, 2009) 
(acknowledging this regulatory history).
    \44\ See 72 FR 8428 (Feb. 26, 2007); 69 FR 2398 (Jan. 15, 2004); 
66 FR 5002 (Jan. 18, 2001); 65 FR 59896 (Oct. 6, 2000); 65 FR 6698 
(Feb. 10, 2000); 62 FR 54694 (Oct. 21, 1997); 62 FR 31192 (June 6, 
1997); 60 FR 34326 (June 30, 1995); 60 FR 4712 (Jan. 24, 1995); 59 
FR 48472 (Sept. 21, 1994); 59 FR 16262 (Apr. 6, 1994); 53 FR 43870 
(Oct. 31, 1988); 49 FR 3010 (Jan. 24, 1984); 48 FR 48598 (Oct. 19, 
1983); 45 FR 63734 (Sept. 25, 1980).
    \45\ See Public Law 101-549, section 203, 104 Stat. 2399, 2474 
(1990); Public Law 91-604, section 6, 84 Stat. 1676, 1690 (1970).
---------------------------------------------------------------------------

B. Petitions for Rulemaking and Massachusetts v. EPA

    In October 1999, a coalition of 19 environmental organizations 
petitioned the EPA to regulate the emission of four GHGs--
CO2, methane, N2O, and HFCs--from new motor 
vehicles and engines under CAA section 202(a)(1). Petitioners claimed 
that these four GHGs were ``air pollutant[s]'' under CAA section 
302(g), significantly contributed to global climate change, and met the 
statutory standard for regulation under CAA section 202(a)(1). Thus, 
petitioners claimed that the EPA had the authority and obligation to 
find that GHG emissions from new motor vehicles and engines cause, or 
contribute to, air pollution which may reasonably be anticipated to 
endanger public health or welfare and to prescribe standards in 
response.
    In September 2003, after receiving and responding to nearly 50,000 
public comments on the relevant issues, the EPA denied the 1999 
petitions in a final action titled ``Control of Emissions from New 
Highway Vehicles and Engines,'' 68 FR 52922 (Sept. 8, 2003) (``2003 
Denial''). The 2003 Denial asserted three primary reasons for denying 
the petitions. First, after ``examin[ing] the fundamental issue of 
whether the CAA authorizes the imposition of control requirements'' to 
``reduce the risk of global climate change,'' we concluded that 
``CO2 and other GHGs cannot be considered `air pollutants' 
subject to the CAA's regulatory provisions for any contribution they 
may make to global climate change.'' 68 FR 52925. Citing the Supreme 
Court's decision in FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 
120 (2000), we noted that the CAA does not address GHGs as a regulatory 
matter, including in then-recent amendments, and that the ``EPA has 
used these provisions to address air pollution problems that occur 
primarily at ground level or near the surface of the earth.'' 68 FR 
52926. On this basis, we concluded that GHGs ``are not air pollutants 
under the CAA's regulatory provisions, including sections 108, 109, 
111, 112, and 202'' because they categorically are not ``air 
pollutant[s]'' under the Act-wide definition in CAA section 302(g). 68 
FR 52928. Second, we raised in the alternative several policy reasons 
for declining to regulate GHGs, including that regulating GHG emissions 
from motor vehicles and engines under the CAA would interfere with 
NHTSA's authority to implement fuel economy standards. 68 FR 52929. We 
also asserted that regulating GHG emissions from motor vehicle engines 
under the CAA would undermine then-President Bush's policy approach of 
addressing global climate change concerns comprehensively through 
voluntary actions and incentives, the promotion of research and 
technologies, and international negotiations. 68 FR 52930-31. That is, 
we reasoned that establishing GHG emission standards through unilateral 
action would ``result in an inefficient, piecemeal approach to 
addressing the climate change issue'' because ``all significant sources 
and sinks of GHG emissions'' should be considered in deciding the best 
way to achieve emissions reductions. 68 FR 52931.
    In Massachusetts, the Supreme Court narrowly reversed the D.C. 
Circuit's decision upholding the EPA's denial of the 1999 petitions for 
rulemaking.\46\ The Court took particular issue with the EPA's reading 
of the Act-wide definition in CAA section 302(g), ruling that ``[t]he 
Clean Air Act's sweeping definition of `air pollutant' . . . embraces 
all airborne compounds of whatever stripe'' and provided no textual 
basis for excluding CO2 or the three other GHGs raised in 
the petitions for rulemaking. 549 U.S. at 528-29. The Court also 
addressed the EPA's reliance on Brown & Williamson, which the majority 
construed as having found no congressional intent to ban the sale of 
tobacco products outright because such an application of the relevant 
statute would have been highly unlikely and because the Food and Drug 
Administration (FDA) had expressly refused to assert such authority in 
the past. Id. at 530-31. In contrast, in Massachusetts, the Court found 
that the CAA did not reflect a congressional intent to categorically 
exclude GHGs and, citing several EPA memoranda, that we had not 
similarly foresworn all authority to regulate GHGs as a categorical 
matter. Id.
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    \46\ The D.C. Circuit majority had upheld the denial on the 
merits because ``the EPA Administrator properly exercised his 
discretion under section 202(a)(1) in denying the petition for 
rulemaking.'' Massachusetts v. EPA, 415 F.3d 50, 58 (D.C. Cir. 
2005). The dissent argued that CAA section 202(a)'s breadth provided 
the EPA sufficient authority to regulate GHGs, that more specific 
authorization was not required, and that the EPA's policy 
justifications were inadequate reasons to deny the petitions. Id. at 
67-82 (Tatel, J., dissenting).
---------------------------------------------------------------------------

    Notably, the Court expressly declined to decide whether the EPA was 
required to issue an endangerment finding as to GHG emissions under the 
standard set out in CAA section 202(a)(1). Id. at 534 (``We need not 
and do not reach the question whether on remand EPA must make an 
endangerment finding.''). Nor did the Court address ``whether policy 
concerns can inform EPA's actions in the event that it makes such a 
finding.'' Id. at 534-35. Rather, the Court emphasized that the scope 
of its review of the denial of a rulemaking petition was ``extremely 
limited,'' id. at 527-28 (citation omitted), and held that we must 
respond to the petitions by deciding whether GHG emissions from new 
motor vehicles and engines meet the standard for regulation in CAA 
section 202(a)(1) or whether the science was too uncertain to make any 
determination, and that, in doing so, we must ``ground [our] reasons 
for action or inaction in the statute,'' id. at 535.\47\
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    \47\ Writing for four members of the Court, Chief Justice 
Roberts would have dismissed the petitions for review for lack of 
Article III standing. 549 U.S. at 535 (Roberts, C.J., joined by 
Scalia, Thomas, and Alito, J.J., dissenting). Writing for the same 
four members of the Court, Justice Scalia would have denied the 
petitions on the grounds that the Administrator reasonably exercised 
judgment in declining to regulate and that CAA section 302(g)'s 
definition of ``air pollutant'' does not clearly encompass 
CO2 and other GHGs that naturally occur in the ambient 
air. 549 U.S. at 549 (Scalia, J., joined by Roberts, C.J., and 
Thomas and Alito, J.J., dissenting).

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[[Page 7698]]

C. The 2009 Endangerment Finding

    The EPA responded to the Supreme Court's decision in Massachusetts 
by issuing the 2008 ANPRM. In the 2008 ANPRM, the Administrator began 
by noting it was ``clear that if EPA were to regulate [GHG] emissions 
from motor vehicles under the Clean Air Act,'' the interplay between 
CAA section 202(a)(1) and similarly worded statutory provisions ``could 
result in an unprecedented expansion of EPA authority that would have a 
profound effect on virtually every sector of the economy and touch 
every household in the land.'' 73 FR 44355. The Administrator cautioned 
that because the CAA was ``originally enacted to control regional 
pollutants that cause direct health effects,'' invoking authority to 
regulate GHG emissions ``would inevitably result in a very complicated, 
time-consuming, and, likely, convoluted set of regulations'' that 
``would be relatively ineffective at reducing [GHG] concentrations'' 
and have a ``potentially damaging effect on jobs and the U.S. 
economy.'' Id.
    The 2008 ANPRM echoed the Administrator's concerns by seeking 
public comment on invoking CAA section 202(a)(1) to regulate new motor 
vehicle and engine emissions in response to global climate change 
concerns. We acknowledged that the CAA ``was not specifically designed 
to address GHGs,'' 73 FR 44397, and that the EPA had historically 
interpreted and applied its CAA regulatory authorities as extending to 
local and regional air pollution problems, 73 FR 44408. We further 
noted that Congress was considering legislation to address the Nation's 
response to global climate change concerns and that, since 
Massachusetts, Congress had passed and the President had signed into 
law the Energy Independence and Security Act (EISA),\48\ which amended 
provisions applicable to the EPA's Renewable Fuels Standard (RFS) 
program and NHTSA's CAFE standards program. 73 FR 44398. Finally, we 
noted that the EPA received additional petitions to regulate stationary 
sources and additional GHGs, including water vapor, all of which 
suggested that GHG emission regulations could not readily be limited to 
new motor vehicles and engines. 73 FR 44399 & n.26.
---------------------------------------------------------------------------

    \48\ Public Law 110-140, 121 Stat. 1492 (2007).
---------------------------------------------------------------------------

    As to CAA section 202(a)(1), the 2008 ANPRM set out a framework for 
determining whether ``GHG emissions from new motor vehicles cause or 
contribute to air pollution that may reasonably be anticipated to 
endanger public welfare'' under CAA section 202(a)(1) or for 
``explain[ing] why scientific uncertainty is so profound that it 
prevents making a reasoned judgment on such a determination.'' 73 FR 
44398, 44421. We reviewed available information for CO2, 
methane, and N2O emissions and noted that HFCs, PFCs, and 
SF6 are ``often grouped together'' and separately from the 
rest ``because they contain fluorine, typically have large global 
warming potentials, and are produced only through human activities.'' 
73 FR 44401-02.\49\ With respect to endangerment, we sought comment on 
whether GHGs could properly be considered air pollution that endangers 
public health or welfare because the potential health effects are 
indirect and the potential welfare effects may be positive on balance. 
73 FR 44427. In addition, we sought comment on whether ``the unique 
characteristics and properties of each GHG . . . as well as current and 
projected emissions'' meant that each GHG should be analyzed 
individually or whether certain GHGs other than CO2 were 
amenable to grouping. 73 FR 44428. With respect to causation or 
contribution, we presented motor vehicle and engine emissions data for 
each GHG separately and noted that emission trends had diverged between 
pollutants, with CO2 emissions, for example, generally 
increasing since 1990 and N2O emissions, for example, 
increasing from 1990 to 1995 and then falling substantially from 1995 
to 2006 because of fuel and technology changes. 73 FR 44430. We also 
presented extensive information on potential regulatory approaches that 
could be triggered by a positive finding under CAA section 202(a)(1), 
including approaches specific to particular GHGs. 73 FR 44438-63.
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    \49\ In the 2008 ANPRM, the EPA noted that the most recently 
available IPCC analysis concluded that ``[t]he anthropogenic 
combined heating effect (referred to as forcing) of [methane], 
N2O, HFCs, PFCs and SF6 is about 40% as large 
as the CO2 cumulative heating effect since pre-industrial 
times.'' 73 FR 44423.
---------------------------------------------------------------------------

    Following a change in administration, however, the EPA proposed in 
April 2009 and finalized in December 2009 a much different approach to 
analyzing GHG emissions from new motor vehicles and engines under CAA 
section 202(a)(1). In the Endangerment Finding, the Administrator found 
that ``the science [was] sufficiently certain'' to compel a 
determination and interpreted Massachusetts as ``allow[ing] for the 
consideration only of science.'' 74 FR 66501. The Administrator 
interpreted Massachusetts as holding not only that ``GHGs fall within 
the definition of `air pollutant' under the CAA,'' but also as standing 
for the proposition ``that EPA may regulate GHGs if required findings 
were made.'' EF RTC 11:5. While expressing a ``preference for 
comprehensive climate change legislation over the use of the current 
CAA to tackle climate change,'' the Administrator understood the 
Endangerment Finding as satisfying the EPA's ``duty'' and 
``responsibility to respond to the Supreme Court's decision and to 
fulfill its obligations under current law.'' EF RTC 11:19.\50\ In 
addition, the Administrator declined to consider any of the 
implementation challenges or options discussed in the 2008 ANPRM, 
asserting instead that CAA section 202(a) confers ``procedural 
discretion'' to issue standalone findings without considering a 
regulatory response because the statute ``is silent on this issue,'' 74 
FR 66501, and interpreting Massachusetts as forbidding the EPA from 
considering in any respect the regulations that will result from an 
affirmative finding, 74 FR 66515.
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    \50\ Specifically, a variety of commenters on the proposed 
Endangerment Finding asserted that the Clean Air Act is ill-suited 
to address global climate change concerns, and that the EPA should 
await the results of ongoing debates and development of responsive 
legislation in Congress, for which both the President and the 
Administrator had expressed support. EF RTC 11:18-19.
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    The Administrator defined the relevant ``air pollution'' as ``the 
combined mix of six key directly-emitted, long-lived and well-mixed 
[GHGs] . . . which together, constitute the root cause of human-induced 
climate change and the resulting impacts on public health and 
welfare.'' 74 FR 66517. At times, the Administrator referred to the 
``air pollution'' as the total concentration of GHGs in the atmosphere, 
e.g., id., and at times as only the ``elevated atmospheric 
concentrations'' of GHGs in the atmosphere as compared to pre-
industrial levels, e.g., 74 FR 66523. In defining ``air pollution'' in 
this manner, the Administrator rejected arguments that the term as used 
in CAA section 202(a)(1) is limited to domestic concerns and airborne 
materials that cause direct human health effects, such as through 
inhalation. EF RTC 9:1-2. The Administrator reasoned that the treatment 
of ``air pollutant'' in

[[Page 7699]]

Massachusetts extended to the term ``air pollution'' directly, without 
the need for analysis of the difference in terminology and statutory 
context, and did not specifically grapple with the EPA's prior 
practice. Id. Notably, the Administrator excluded other ``climate 
forcers'' from this definition, including black carbon, ozone-depleting 
substances, nitrogen trifluoride, water vapor, and ground-level ozone. 
74 FR 66520. While maintaining that these ``climate forcers'' could be 
regulated in response to global climate change concerns, the 
Administrator found that these substances were sufficiently different 
from the six ``well-mixed'' GHGs to warrant separate consideration. Id. 
As to water vapor, the Administrator reasoned that ``the level of 
understanding is low'' and that the EPA ``plans to further evaluate the 
issues of emissions of water.'' Id. And as to ground-level ozone, the 
Administrator reasoned that although ``tropospheric ozone 
concentrations have exerted a significant anthropogenic warming effect 
since pre-industrial times,'' ozone was unlike the six directly 
emitted, ``well-mixed'' GHGs because it ``forms in the atmosphere from 
emission of pre-cursor gases.'' Id.
    The Administrator also defined the relevant ``air pollutant'' as 
``a single air pollutant'' comprised of ``the same six long-lived and 
directly-emitted [GHGs],'' meaning the Endangerment Finding did not 
need to address the different characteristics or emission trends of any 
of the six selected GHGs individually. 74 FR 66536-37. The 
Administrator stated that ``if in the future other substances are shown 
to meet the same criteria they may be added to the definition of this 
single air pollutant'' for regulatory purposes. 74 FR 66537. Although 
new motor vehicles and engines ``do not emit all of the substances 
meeting the definition of well-mixed [GHGs]''--specifically, PFCs and 
SF6--the Administrator found that ``the reasonableness of 
this grouping does not turn on the particular source category being 
evaluated in a contribution finding.'' Id.
    With respect to endangerment, the Administrator began by excluding 
adaptation--human responses that reduce potential adverse impacts--and 
mitigation--independent measures that reduce the causes of potential 
adverse impacts--from the analysis of global climate change concerns. 
74 FR 66513. The Administrator acknowledged that ``some level of 
autonomous adaptation will occur'' and that ``this separation means 
this approach may not reflect the actual conditions in the real world 
in the future, because adaptation and/or mitigation may occur and 
change the risks.'' Id. Nevertheless, the Administrator reasoned that 
``it would be extremely hard to make a reasoned projection of human and 
societal adaptation and mitigation responses'' because they are 
``largely political'' or ``individual personal judgments.'' Id. Next, 
the Administrator relied on IPCC Assessment Report 4 (AR4) projections 
to find that GMST would likely increase between 1.8 to 4 [deg]C by 
2100, with an uncertainty range of 1.1 to 6.4 [deg]C. 74 FR 66519. 
Operating within this analytical framework, the Administrator found 
that elevated global concentrations of GHGs from all foreign and 
domestic sources were responsible for increased GMST that were 
responsible in turn for indirect health risks driven by (1) more 
frequent heat waves; (2) air quality effects, including increased 
formation of ozone, and (3) broader societal impacts related to 
increased frequency and severity of certain extreme weather events. 74 
FR 66525.\51\ The Administrator also found that GHG emissions could 
lead to welfare effects related to GSLR and other downstream impacts, 
including (1) food production and agriculture; (2) forestry; (3) water 
resources; and (4) energy infrastructure and settlements, although the 
evidence was uncertain for several categories that may see near-term 
benefits. 74 FR 66531-35.\52\ Importantly, the Administrator 
acknowledged that the understanding of public health and welfare in the 
Endangerment Finding was atypical, particularly with respect to 
considering indirect effects and because ``[n]one of th[e] human health 
effects are associated with direct exposure to [GHGs],'' but asserted 
the approach was necessary given the ``unique'' challenge presented by 
global climate change. 74 FR 66527. The Administrator reasoned that 
many of the identified welfare impacts could be considered health 
impacts and that all such impacts could result indirectly from GHG 
``air pollution,'' 74 FR 66528-29, and noted that the identified 
welfare impact pathways involved multiple causal steps, 74 FR 
66531.\53\ In reaching these conclusions, the Administrator rejected 
arguments that the endangerment analysis should focus on domestic 
emissions and impacts on domestic ambient air and that Congress 
expressly provided authority when it intended the EPA to consider non-
domestic air pollution. EF RTC 9:1.\54\
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    \51\ The Administrator also noted that increased GMST could lead 
to changes in certain food- and water-borne pathogens and allergens 
(including increases in pollen resulting from increased plant growth 
at higher concentrations of CO2) but did ``not plac[e] 
primary weight on these factors.'' 74 FR 66498, 66526.
    \52\ The Administrator relied on welfare impacts to water 
resources and sea level rise as providing ``the clearest and 
strongest support for an endangerment finding.'' 74 FR 66534.
    \53\ The Administrator noted that ``[a]s with public health,'' 
the analysis of ``welfare'' in the Endangerment Finding ``considered 
the multiple pathways'' through which ``the GHG air pollution'' 
could result in ``climate change'' that ``affects climate-sensitive 
sectors,'' which then leads to potential ``impact . . . on public 
welfare.'' 74 FR 66531.
    \54\ For example, commenters on the proposed Endangerment 
Finding pointed to CAA sections 115 (authorizing the EPA to require 
controls when domestic emissions cause or contribute to air 
pollution that endangers public health or welfare in another country 
that has adopted reciprocal protections for emissions into the 
United States), 179B (authorizing the EPA to account for the impact 
of international emissions on State attainment of the NAAQS under 
certain conditions), and Title VI (providing for various authorities 
and obligations to address emissions that damage the ozone layer). 
EF RTC 9:1; see 42 U.S.C. 7415, 7509a, 7671 et seq.
---------------------------------------------------------------------------

    With respect to contribution, the Administrator asserted broad 
authority to interpret the statutory standard because ``[t]he language 
of CAA section 202(a) is silent regarding how the Administrator is to 
make her contribution analysis.'' 74 FR 66544. Exercising that putative 
interpretive authority, the Administrator concluded that ``it is 
reasonable to consider that lower percentages contribute than one may 
consider when looking at a local or regional problem involving fewer 
sources of emissions,'' 74 FR 66545, because ``all contributors must do 
their part'' to avoid ``a tragedy of the commons, whereby no country or 
source category would be accountable for contributing to the global 
problem of climate change,'' 74 FR 66543. Next, the Administrator 
relied on data showing that existing motor vehicles and engines emitted 
four GHGs--CO2, methane, and N2O from engines, as 
well as HFCs from air conditioning units--that accounted for 4.3 
percent of annual global GHG emissions at the time. On that basis, the 
Administrator found that annual GHG emissions from new motor vehicles 
and engines ``contribute to the air pollution'' consisting of the total 
global concentrations of the six ``well-mixed'' GHGs previously 
identified as a danger to public health or welfare. 74 FR 66537-39.
    Crucially, the Endangerment Finding made clear that the EPA was 
acting independently from any new congressional mandate. Rather, the 
Administrator interpreted CAA section 202(a)(1) as setting out a 
standalone authority to issue findings that establish an obligation to 
regulate without considering implementation and purported to rest the 
Endangerment Finding solely on a scientific judgment

[[Page 7700]]

informed by the record as assembled by the Agency in 2009.

D. Implementation of the 2009 Endangerment Finding

    In the years since issuing the Endangerment Finding, the EPA has 
promulgated GHG emission standards for various classes of new motor 
vehicles and engines in reliance on the Endangerment Finding and, as 
anticipated in the 2008 ANPRM, sought to expand the same analytical 
framework to regulatory provisions governing existing vehicles, 
stationary sources, aircraft, and oil and gas operations. For a full 
accounting of GHG emission standards adopted since 2009 under CAA 
section 202(a)(1), see sections VII.B and VII.C of this preamble.
    In the Endangerment Finding, the EPA treated as out of scope the 
impacts of extending CAA section 202(a)(1) to address global climate 
change concerns on other CAA provisions with similar endangerment 
provisions. See, e.g., EF RTC 11:20-23. However, the EPA soon finalized 
the first set of GHG emission standards for new motor vehicles and 
engines \55\ alongside related rules establishing GHG emission 
thresholds for stationary source permitting under the Prevention of 
Significant Deterioration (PSD) program and Title V.\56\ Several years 
later, the EPA again relied on the Endangerment Finding to extend the 
GHG regulatory program to new and existing stationary source 
performance standards and guidelines for power plants under CAA section 
111.\57\
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    \55\ 75 FR 25324 (May 7, 2010).
    \56\ ``Reconsideration of Interpretation of Regulations That 
Determine Pollutants Covered by Clean Air Act Permitting Programs,'' 
75 FR 17004 (Apr. 2, 2010) (``Triggering Rule''); ``Prevention of 
Significant Deterioration and Title V Greenhouse Gas Tailoring 
Rule,'' 75 FR 31514 (June 3, 2010) (``Tailoring Rule'').
    \57\ ``Standards of Performance for Greenhouse Gas Emissions 
From New, Modified, and Reconstructed Stationary Sources: Electric 
Utility Generating Units,'' 80 FR 64510 (Oct. 23, 2015) (``2015 
NSPS''); ``Carbon Pollution Emission Guidelines for Existing 
Stationary Sources: Electric Utility Generating Units,'' 80 FR 64662 
(Oct. 23, 2015) (``Clean Power Plan''). The EPA also cited the 
Endangerment Finding to reach a similar conclusion for aircraft 
under CAA section 231. ``Finding That Greenhouse Gas Emissions From 
Aircraft Cause or Contribute to Air Pollution That May Reasonably Be 
Anticipated To Endanger Public Health and Welfare,'' 81 FR 54422 
(Aug. 15, 2016).
---------------------------------------------------------------------------

    In Coalition for Responsible Regulation, the D.C. Circuit rejected 
petitions for review of the Tailpipe Rule, Triggering Rule, Tailoring 
Rule, and the underlying Endangerment Finding. As relevant here, the 
court read Massachusetts as precluding us from declining to regulate 
for policy reasons that ``were not part of the calculus'' and, citing 
generally to the entirety of the Massachusetts decision, as holding 
that the ``EPA indeed wields the authority to regulate greenhouse gases 
under the CAA.'' 684 F.3d at 118. Applying this reading, the court 
rejected petitioners' arguments that we should have considered the ``` 
absurd' '' results for stationary source permitting when issuing the 
Endangerment Finding. Id. The court understood the interpretation of 
the statutory definition of ``air pollutant'' in Massachusetts to apply 
anywhere that term is used in the substantive provisions of the CAA. 
Id. at 134-44. The court acknowledged that ``nothing in the CAA 
requires regulation of a substance simply because it qualifies as an 
`air pollutant' under this broad definition.'' Id. at 135. Applying its 
understanding of Massachusetts, however, the court held that reading 
``air pollutant'' as ``any regulated air pollutant'' was ``compelled by 
the statute'' and rejected petitioners' arguments that the PSD 
provisions should be read in context as focusing on localized ``air 
pollution'' problems. Id. at 134, 138.\58\
---------------------------------------------------------------------------

    \58\ The D.C. Circuit subsequently denied rehearing en banc. See 
Coal. for Responsible Regulation v. EPA, 2012 U.S. App. LEXIS 25997 
(Dec. 20, 2012). Judge Brown dissented, arguing that the CAA was 
designed to address ``the harmful effects of poisoned air on human 
beings and their local environs,'' that such important policy 
decisions were for Congress to decide, and that the panel had 
overread ``dicta'' in Massachusetts. Id. at * 29-62. Then-Judge 
Kavanaugh also dissented, arguing that we exceeded our statutory 
authority in regulating GHG emissions under the PSD program by 
failing to read the term ``air pollutant'' in context and that the 
issue was ``plainly one of exceptional importance'' that Congress 
should decide. Id. at * 62-93.
---------------------------------------------------------------------------

    In UARG, the Supreme Court held that the EPA exceeded its authority 
under the CAA in its approach to extending stationary source permitting 
to cover GHG emissions. The Court rejected the D.C. Circuit's 
application of Massachusetts in this context as a ``flawed syllogism,'' 
573 U.S. at 316, holding that ``while Massachusetts rejected EPA's 
categorical contention that greenhouse gases could not be `air 
pollutants' for any purposes of the Act, it did not embrace EPA's 
current, equally categorical position that greenhouse gases must be air 
pollutants for all purposes regardless of the statutory context,'' id. 
at 319 (cleaned up). Rather, ``Massachusetts does not foreclose the 
Agency's use of statutory context to infer that certain of the Act's 
provisions use `air pollutant' to denote not every conceivable airborne 
substance, but only those that may sensibly be encompassed within the 
particular regulatory program.'' Id. The Court went on to reject our 
interpretation that required a permit based on GHG emissions as ``` 
incompatible' with `the substance of Congress' regulatory scheme' '' 
and inconsistent with the principle that ``Congress . . . speak[s] 
clearly if it wishes to assign to an agency decisions of vast `economic 
and political significance.' '' Id. at 322-24 (quoting Brown & 
Williamson, 529 U.S. at 156, 159).\59\
---------------------------------------------------------------------------

    \59\ Writing for four Justices in a partial dissent, Justice 
Breyer argued that the statute could be interpreted to encompass 
certain stationary sources based on their volume of GHG emissions. 
573 U.S. at 334-43 (Breyer, J., joined by Ginsburg, Sotomayor, and 
Kagan, J.J.). Writing for two Justices in a partial dissent from a 
different holding, Justice Alito argued that the case demonstrated 
that Massachusetts was wrongly decided and that the majority erred 
in holding that permitted sources that emit conventional pollutants 
could be required to install control technologies for GHGs. Id. at 
343-50 (Alito, J., joined by Thomas, J.).
---------------------------------------------------------------------------

    Soon thereafter, both courts weighed in on the extension of the GHG 
regulatory program to power plants under CAA section 111. The Supreme 
Court stayed the 2015 Clean Power Plan pending review by the D.C. 
Circuit, which had denied a stay.\60\ The D.C. Circuit subsequently 
reviewed a later rulemaking that repealed the Clean Power Plan and 
replaced it in part.\61\ In American Lung Association v. EPA, 985 F.3d 
914 (D.C. Cir. 2021), a divided panel reinstated the 2015 Clean Power 
Plan and vacated the 2019 ACE Rule. Among other things, the panel 
majority held that the major questions doctrine has no application to 
the scope of our CAA section 111 authority, id. at 959-61, and rejected 
the argument that generation shifting was an impermissible use of our 
regulatory authority, id. at 966-68. The panel majority also rejected 
challenges to the endangerment and significant contribution bases for 
regulating GHGs under CAA section 111, citing Coalition for Responsible 
Regulation and stating that if ``greenhouse gas emissions by fossil-
fuel-fired power plants'' do not ``significantly contribute'' to global 
climate change, it would be ``nigh impossible for any source of 
greenhouse gas pollution to cross that statutory threshold.'' Id. at 
977.\62\
---------------------------------------------------------------------------

    \60\ West Virginia v. EPA, 136 S Ct. 1000 (2016).
    \61\ ``Affordable Clean Energy Rule,'' 84 FR 32520 (July 8, 
2019) (``2019 ACE Rule'').
    \62\ In a partial dissent, Judge Walker argued that the 2015 
Clean Power Plan (and aspects retained in the 2019 ACE Rule) 
violated the major questions doctrine because CAA section 111 does 
not include a clear statement of authority to regulate GHG emissions 
from power plants. Am. Lung Ass'n, 985 F.3d at 995-1003 (pointing to 
failed legislation in 2009 that would have provided the requisite 
authority to regulate GHG emissions from power plants).

---------------------------------------------------------------------------

[[Page 7701]]

    In West Virginia, the Supreme Court reversed the D.C. Circuit's 
treatment of the major questions doctrine and held that the 2015 Clean 
Power Plan exceeded our authority to regulate existing sources under 
CAA section 111(d). The Court surveyed UARG, Brown & Williamson, and 
additional precedents to confirm that an agency must have more than ``a 
colorable textual basis'' to assert `` `unheralded' regulatory power 
over `a significant portion of the American economy.' '' 597 U.S. at 
721-23 (quoting UARG, 573 U.S. at 324). In such cases, ``both 
separation of power principles and a practical understanding of 
legislative intent'' require the agency to ``point to `clear 
congressional authorization' for the power it claims.'' Id. at 723 
(quoting UARG, 573 U.S. at 324). The Court held that our reliance on 
CAA section 111(d) to regulate GHG emissions was ``a major questions 
case'' because we had asserted the power ``to substantially restructure 
the American energy market.'' Id. at 724. That provision ``had rarely 
been used in the preceding decades,'' and we had used it in an 
``unprecedented'' manner ``to adopt a regulatory program that Congress 
had conspicuously and repeatedly declined to enact itself.'' Id. at 
724-28. Since we lacked express authorization, the Court concluded that 
we lacked statutory authority for the 2015 Clean Power Plan. Id. at 
732-35.\63\
---------------------------------------------------------------------------

    \63\ In dissent, Justice Kagan argued that the Court had 
obstructed the EPA's efforts to regulate GHG emissions: ``Today, the 
Court strips the [EPA] of the power Congress gave it to respond to 
`the most pressing environmental challenge of our time.'' West 
Virginia, 597 U.S. at 753 (Kagan, J., joined by Breyer and 
Sotomayor, J.J., dissenting) (quoting Massachusetts, 549 U.S. at 
505); see also id. at 755 (``This Court has obstructed EPA's effort 
from the beginning.'').
---------------------------------------------------------------------------

    Following the Endangerment Finding, the EPA also received multiple 
petitions for reconsideration from industry groups, States, and various 
organizations arguing that our approach in 2009 was legally and 
scientifically flawed and that external assessments by the IPCC, among 
others, had not adequately addressed recent criticisms of climate 
change science. The EPA denied these consolidated petitions in 2010 
without notice and comment (``2010 Denials''). Reiterating the 
scientific assertions from the technical support document (TSD) used in 
2009, we emphasized that we had conducted an independent review of 
outside assessments in issuing the Endangerment Finding and asserted 
that the core conclusions of the Endangerment Finding remained valid 
notwithstanding the flaws raised by the petitioners. The EPA also 
issued a volume of response documents defending the methodologies and 
experts relied upon and concluded that no new information warranted 
reconsideration. 75 FR 49556.\64\
---------------------------------------------------------------------------

    \64\ The D.C. Circuit rejected several petitions for review of 
the 2010 Denials as part of the Coalition for Responsible Regulation 
decision. 684 F.3d at 124-26.
---------------------------------------------------------------------------

    In April 2022, the EPA denied, again without notice and comment, a 
new round of petitions for reconsideration and rulemaking asserting 
that the Endangerment Finding was legally and scientifically flawed and 
undermined by more recent scientific assessments (``2022 Denials''). We 
acknowledged that several recent studies contradicted assessments by 
the USGCRP and IPCC but reaffirmed our earlier position that such 
assessment reports are entitled to greater weight than dissenting 
views.\65\ We also considered criticisms of the EPA's SCC methodology 
out of scope because ``the social cost of carbon played no role in the 
2009 Endangerment Finding.'' \66\ We further acknowledged that severing 
the endangerment and cause or contribute analysis from the development 
of subsequent regulations had impacted the EPA's approach to GHG 
emission standards, including because the SAB did not have the 
opportunity to review the Endangerment Finding as would otherwise have 
been required by the CAA.\67\ Nevertheless, we reaffirmed our position 
that CAA section 202(a) grants ``procedural discretion'' to issue 
findings and emission standards separately and ``decline[d] to exercise 
that discretion'' differently.\68\
---------------------------------------------------------------------------

    \65\ 2022 Denials at 15-17.
    \66\ Id. at 30.
    \67\ Id. at 36 (noting that 42 U.S.C. 4365(c)(1) requires SAB 
consultation for a ``standard'' promulgated under CAA section 202(a) 
but asserting that requirement does not extend to ``findings'' 
issued under the same provision).
    \68\ Id. at 39.
---------------------------------------------------------------------------

E. Reconsideration of the 2009 Endangerment Finding

    Since the EPA published the 2009 Endangerment Finding, there have 
been developments in innovation, science, economics, and mitigation, as 
well as significant Supreme Court decisions that provide new guidance 
on how Federal agencies should interpret the statutory provisions that 
Congress has tasked them with administering.\69\ Accordingly, the 
Administrator determined that the Endangerment Finding should be 
reconsidered to address legal and scientific developments that present 
reason to question the ongoing validity and reliability of its 
conclusions and to subject these important issues to public comment for 
the first time since 2009.
---------------------------------------------------------------------------

    \69\ See Feb. 19, 2025 Memo at 1.
---------------------------------------------------------------------------

    In initiating reconsideration, the Administrator explored all 
findings, support, questions, and ambiguities contained within the 
science relied upon by the Endangerment Finding. On July 29, 2025, the 
Administrator signed a proposed rule setting out the results of the 
EPA's reconsideration to date and proposing to rescind the Endangerment 
Finding and all GHG emission standards for LD, MD, and HD motor 
vehicles and engines promulgated since 2009 under CAA section 
202(a)(1). At proposal, we noted that the Endangerment Finding itself 
and subsequent reports, studies, and analyses had acknowledged 
significant questions and ambiguities presented by the observable 
realities of the past nearly two decades and the recent findings of the 
scientific community. We also noted that there may be as-yet-
unidentified issues or discrepancies present in the underlying 
technical analysis and scientific justifications offered in the 
Endangerment Finding. Finally, we noted that when confronted with 
science offering a diverse array of conclusions, methodologies, and 
explanations, the Administrator strove to inform his judgment to the 
most impartial extent possible.
    In reviewing the public response to the proposal, the Administrator 
appreciated the wide variety of perspectives and significant interest 
in the issues raised for further consideration. In particular, the 
Administrator carefully examined the additional data, modeling, and 
information submitted in connection with our request for comment on the 
impact of the EPA's GHG emission standards for new motor vehicles and 
engines to date and the efficacy of such regulations in addressing the 
risks identified in the Endangerment Finding. The EPA has conducted 
further analysis to evaluate the competing perspectives on the ability 
of GHG emission standards to have a material (i.e., non-de minimis) 
impact on global climate change concerns, with a particular focus on 
trends in GMST and GSLR--key metrics commonly derived from climate 
models and primary drivers of the Agency's causal analysis of 
endangerment in the 2009 Endangerment Finding.
    As discussed in section IV of this preamble, the EPA concludes that 
it lacks statutory authority to resolve these questions through 
regulatory findings and emission standards under CAA section 202(a)(1). 
That conclusion led the Administrator to rest this final action on the 
legal bases proposed as the

[[Page 7702]]

primary rationale for rescission of the Endangerment Finding and repeal 
of associated GHG emission standards, as explained in sections V.A and 
V.B of this preamble. As a separate but complementary basis for 
rescission and repeal, the Administrator finds that the available 
evidence indicates GHG emission standards under CAA section 202(a)(1) 
do not impact trends in GMST or GSLR in any material way, let alone the 
health and welfare impacts attributed to such trends in the 
Endangerment Finding. As discussed in section V.C of this preamble, 
this conclusion further indicates that the best reading of CAA section 
202(a)(1) does not encompass the regulation of ``air pollution'' in the 
form of global climate change concerns and serves as an independent 
basis for repealing the GHG emission standards. For discussion of 
public comments received on the alternative climate science basis and 
the Administrator's decision not to finalize on that ground in favor of 
future opportunities for fact finding and public engagement, see 
section VI of this preamble.

IV. Legal Framework for Action

A. Rescission of the Endangerment Finding

    The statutory authority for this final action is the same as that 
relied upon in the prior actions at issue: CAA section 202(a)(1), which 
requires the Administrator to ``prescribe'' and ``from time to time 
revise . . . standards'' for certain air pollutants emitted by new 
motor vehicles and new motor vehicle engines ``in accordance with the 
provisions of this section.'' \70\ In addition, unless provided 
otherwise by statute, an agency may revise or rescind prior actions so 
long as it acknowledges the change in position, provides a reasonable 
explanation for the new position, and considers legitimate reliance 
interests in the prior position.\71\
---------------------------------------------------------------------------

    \70\ 42 U.S.C. 7521(a)(1).
    \71\ See FDA v. Wages & White Lion Invs., L.L.C., 604 U.S. 542, 
568-70 (2025); FCC v. Fox Television Stations, Inc., 556 U.S. 502 
(2009); Motor Vehicle Mfrs. Ass'n v. State Farm Mut. Auto. Ins. Co., 
463 U.S. 29 (1983).
---------------------------------------------------------------------------

    Nothing in the language of the relevant statutory provision 
prohibits or conditions our general authority to rescind prior actions 
through rulemaking. CAA section 202(a)(1) grants the Administrator 
discretion to ``revise'' standards prescribed ``in accordance with the 
provisions of this section'' and does not require retaining the same 
level of stringency when revising or rescinding existing standards. 
Moreover, the statute neither authorizes the Administrator to issue 
standalone findings that trigger a duty to regulate nor prohibits the 
Administrator from rescinding such findings. Rather, CAA section 
202(a)(1) requires the Administrator to prescribe standards for 
emissions of any air pollutant by classes of new motor vehicles or 
engines when, in his judgment, emissions of such air pollutant by such 
classes of new motor vehicles or engines ``cause, or contribute to, air 
pollution which may reasonably be anticipated to endanger public health 
or welfare.'' Notably, the EPA has consistently assumed that it has the 
statutory authority to rescind the Endangerment Finding in reviewing 
the merits of petitions for reconsideration since 2009 and did not 
state that we lack such reconsideration authority.\72\
---------------------------------------------------------------------------

    \72\ See, e.g., 2022 Denials at 7-10 (denying mandatory 
reconsideration under CAA section 307(d) and reviewing the petitions 
on the merits as rulemaking petitions under APA section 553(e)); 75 
FR 49556, 49560-63 (Aug. 13, 2010) (denying mandatory 
reconsideration under CAA section 307(d) without asserting that the 
EPA lacked statutory authority to rescind or revise the Endangerment 
Finding).
---------------------------------------------------------------------------

    The EPA acknowledges that rescinding the Endangerment Finding 
involves significant changes to the legal interpretations adopted in 
the Endangerment Finding and retained in subsequent actions. For 
example, the interpretation of CAA section 202(a) that we are 
finalizing precludes the EPA from issuing standalone endangerment and 
contribution findings and instead requires the Agency to make findings 
for particular air pollutant emissions and classes of new motor 
vehicles and engines as an integral step in a rulemaking to prescribe 
standards for such emissions and classes, consistent with our decades-
long practice prior to 2009 in regulating non-GHG air pollutants. 
Furthermore, the interpretation of CAA section 202(a)(1) that we are 
finalizing in this action reverses the basis for the Endangerment 
Finding by concluding that global climate change concerns cannot 
satisfy the statutory standard for regulation under CAA section 
202(a)(1). This interpretation is the best reading of the statute, and 
it is different from the final actions taken by the Agency since 2009 
with respect to GHG emission standards under CAA section 202(a).\73\ 
For example, we acknowledge that the EPA changed its position in 2009 
and argued in actions finalized since that time and in briefs filed in 
defense of those actions that CAA section 202(a) authorizes us to 
regulate in response to global climate change concerns.\74\ We also 
acknowledge that the EPA argued in actions finalized since 2009 and in 
briefs filed in defense of those actions that the major questions 
doctrine has no application to CAA section 202(a)(1).\75\ However, 
intervening legal developments must be considered when evaluating these 
statements as they developed over time. We initially developed those 
novel positions without the benefit of the Supreme Court's decisions in 
UARG, Michigan, and West Virginia, which explained and applied the 
major questions doctrine to related GHG emission regulations. Moreover, 
we note that each of these major actions and rules predated the Supreme 
Court's decision in Loper Bright, which overruled Chevron deference to 
agency statutory interpretation and clarified that statutes have a 
single, best meaning.\76\ In light of these decisions and upon further 
review of the EPA's prior statements on the applicability and impact of 
the major questions doctrine, we are finalizing, as proposed, a new 
position that more faithfully adheres to precedent and governing legal 
principles. For discussion of CAA section 202(a)(1) and related 
statutory provisions interpreted in this final action, see section V of 
this preamble.
---------------------------------------------------------------------------

    \73\ See, e.g., 74 FR 66496 (Dec. 15, 2009); 75 FR 25324 (May 7, 
2010); 76 FR 57106 (Sept. 15, 2011); 77 FR 62624 (Oct. 15, 2012); 81 
FR 73478 (Oct. 25, 2016); 85 FR 24174 (Apr. 30, 2020); 86 FR 74434 
(Dec. 30, 2021); 89 FR 27842 (Apr. 18, 2024); 89 FR 29440 (Apr. 22, 
2024).
    \74\ See, e.g., 74 FR 66496, 66524 (Dec. 15, 2009) (Endangerment 
Finding); 2022 Denials at 1; 75 FR 49556 (Aug. 13, 2010) (2010 
Denials).
    \75\ See, e.g., 89 FR 29440, 29468-70 (Apr. 22, 2024) (2024 HD 
GHG Emission Standards Rule) (arguing that regulation of GHG 
emissions under CAA section 202(a) in response to global climate 
change concerns is not a question of significant importance, that 
the EPA has clear congressional authorization, and that use of this 
authority since 2009 is not novel); 89 FR 27842, 27897 (Apr. 18, 
2024) (2024 LD and MD Multi-Pollutant Emission Standards Rule) 
(same). In these final rules, the EPA also took the position--
repudiated in this final action--that it is permissible to expect 
manufacturers to comply with GHG emission standards by shifting to 
EVs.
    \76\ 603 U.S. at 412-13 (overruling Chevron U.S.A., Inc. v. 
NRDC, Inc., 467 U.S. 837 (1984)).
---------------------------------------------------------------------------

    The EPA is also finalizing that GHG emission standards for new 
motor vehicles and engines are futile because they have no material 
(i.e., non-de minimis) impact on the global climate change concerns 
animating this regulatory program and is reaching two separate and 
independent conclusions as a result. First, we conclude that futility 
lends further support to the understanding that CAA section 202(a)(1) 
is best read to encompass ``air pollution'' that endangers human health 
and the environment through local and regional exposure and that 
domestic regulation can impact without requiring

[[Page 7703]]

international emissions reductions. Second, we conclude that futility 
warrants repeal of the GHG emission standards independent from the 
Endangerment Finding because they impose immense burdens without 
furthering any statutory objective. These additional bases for this 
final action represent a change from the novel position taken in 
actions and rulemakings since 2009 to prescribe and revise GHG emission 
standards under CAA section 202(a)(1).\77\ For example, we asserted in 
the Endangerment Finding that the ability of GHG emission standards to 
impact global climate change concerns was outside the scope of the CAA 
section 202(a)(1) endangerment and contribution analysis, 74 FR 66501-
02, that we could not consider the degree of emissions reductions that 
could be achieved by regulations issued as a result of the findings, 74 
FR 66507-08, and that the ``unique'' nature of global climate change 
concerns justified accepting a different analysis than that 
traditionally applied to mobile-source air pollution problems, 74 FR 
66538, 66543. In GHG emission standard rulemakings since 2009, we 
analyzed the impact of potential standards in terms of contribution, 
i.e., tons of emissions, rather than impact on endangerment, i.e., from 
trends in GMST and GSLR that lead in turn to the health and welfare 
impacts predicted in the Endangerment Finding. That is, we generally 
evaluated potential GHG emissions reductions (in tons of CO2 
equivalent) \78\ and used SCC methodologies to attach a dollar value to 
such emissions reductions.\79\ See section V.C of this preamble for 
further discussion of these additional rationales and the EPA's prior 
positions.
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    \77\ See, e.g., 74 FR 66496, 66524 (Dec. 15, 2009); 75 FR 25324 
(May 7, 2010); 76 FR 57106 (Sept. 15, 2011); 77 FR 62624 (Oct. 15, 
2012); 81 FR 73478 (Oct. 25, 2016); 85 FR 24174 (Apr. 30, 2020); 86 
FR 74434 (Dec. 30, 2021); 89 FR 27842 (Apr. 18, 2024); 89 FR 29440 
(Apr. 22, 2024).
    \78\ See, e.g., 75 FR 25324 (May 7, 2010).
    \79\ See, e.g., 89 FR 29440, 29675 (Apr. 22, 2024) (2024 HD GHG 
Emission Standards Rule) (``While the EPA did not conduct modeling 
to specifically quantify changes in climate impacts resulting from 
this rule in terms of avoided temperature change or sea-level rise, 
the Agency did quantify climate benefits by monetizing the emission 
reductions through the application of estimates of the social cost 
of greenhouse gases (SC-GHGs).''); 89 FR 27842, 28099 (Apr. 18, 
2024) (2024 LD and MD Multi-Pollutant Emission Standards Rule) 
(same).
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    The EPA further acknowledges that repealing the GHG emission 
standards based on the proposed rescission of the Endangerment Finding 
is a departure from our position in rulemakings since 2009 that 
prescribed and revised GHG emission standards for LD, MD, and HD 
vehicles and engines under CAA section 202(a)(1). This rescission 
eliminates the statutory basis for those standards because we relied on 
the Endangerment Finding in each rulemaking to invoke our authority 
under CAA section 202(a)(1) without making the required findings for 
GHGs emitted by the class or classes of new motor vehicles or engines 
at issue in each rulemaking. To the extent we reaffirmed the 
Endangerment Finding in subsequent standard rulemakings, the 
conclusions we are finalizing in this action eliminate the improperly 
claimed statutory basis for such reaffirmations, all of which relied on 
the same underlying interpretation of CAA section 202(a)(1) as 
encompassing the regulation of GHG emissions based on global climate 
change concerns. See section VII of this preamble for further 
discussion of each prior rulemaking and the regulatory changes we are 
making to repeal all GHG emission standards currently in effect for new 
motor vehicles and engines on bases finalized in this action.
    As discussed throughout this preamble, the EPA is finalizing these 
changes to comply with limits on our statutory authority under the best 
reading of CAA section 202(a)(1), adhere to the legal limits on our 
power to set national policy within our constitutional system of 
democratic government, and realign Agency resources to prioritize core 
statutory responsibilities that protect human health and the 
environment. Importantly, the Nation's policy response to global 
climate change concerns was a major issue in the 2024 presidential 
election, in which voters were presented with distinct legal and policy 
approaches and elected a candidate promising a change in policy. Under 
these circumstances, the election of a new Administration is an 
independent and sufficient basis for reassessing and revising legal 
interpretations to faithfully adhere to the best reading of the 
statute.\80\ Democratic accountability is essential to the exercise of 
delegated authority by administrative agencies,\81\ and retaining the 
Endangerment Finding and associated GHG emission standards without 
clear statutory authority would frustrate, not promote, constitutional 
values and the rule of law. The EPA lacks authority to retain the 
Endangerment Finding under the best reading of CAA section 202(a)(1), 
and the statute controls regardless of policy preferences.\82\
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    \80\ See State Farm, 463 U.S. at 59 (Rehnquist, J., concurring 
in part and dissenting in part); PETA v. USDA, 918 F.3d 151, 158 
(D.C. Cir. 2019) (``new administrations are entitled to reevaluate 
and modify agency practices, even longstanding ones''); Nat'l Ass'n 
of Home Builders v. EPA, 682 F.3d 1032, 1043 (D.C. Cir. 2012) (``the 
inauguration of a new President and the confirmation of a new EPA 
Administrator'' went ``a long way toward explaining why EPA'' 
changed policy).
    \81\ See, e.g., U.S. Telecom Ass'n v. FCC, 855 F.3d 381 (D.C. 
Cir. 2017) (Brown, J., dissenting from denial of rehearing en banc); 
Elena Kagan, Presidential Administration, 114 Harv. L. Rev. 2245, 
2252-53, 2332-34 (2001).
    \82\ Loper Bright, 603 U.S. at 403; West Virginia, 597 U.S. at 
735; UARG, 573 U.S. at 325.
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1. Issues Raised Regarding Rescission Authority
    The EPA received substantial comments on the proposed bases for 
rescinding the Endangerment Finding but relatively few specifically 
addressing the separate question whether we have the authority to 
rescind, provided that the rescission is supported by adequate grounds. 
Most comments received on that issue agreed that the EPA may reconsider 
prior actions unless the relevant statute provides otherwise and 
further agreed that nothing in CAA section 202(a)(1) conditions or 
limits our ability to reconsider prior actions. We appreciate these 
comments and, as noted above, are finalizing this action based on the 
statutory authority conferred in CAA section 202(a)(1) and the 
background principle that agencies may reconsider, revise, and rescind 
prior actions unless provided otherwise by the relevant statute. 
Several commenters raised contrary arguments that did not change our 
view from proposal. For more detailed comment summaries and responses, 
see the Response to Comments document.
    Comment: A few adverse commenters argued that rescinding the 
Endangerment Finding would not support repealing the associated GHG 
emission standards because the standards-setting rulemakings reaffirmed 
and reinforced the Endangerment Finding with additional evidence. Some 
of these commenters also argued that CAA section 202(a)(1) is a 
precautionary provision, which, they asserted, means that we cannot 
rescind the Endangerment Finding based on a lack of confidence in the 
assumptions made and conclusions stated in that action.
    Response: The EPA disagrees that rescinding the Endangerment 
Finding would not impact subsequently issued GHG emission standards and 
notes that these commenters misunderstand the impact of our proposal 
that CAA section 202(a)(1) does not authorize regulating GHG emissions 
in response to global climate change concerns. The Agency has 
consistently maintained that, at

[[Page 7704]]

minimum, a finding that the relevant air pollutant emissions cause or 
contribute to air pollution that endangers public health or welfare is 
a prerequisite to prescribing emission standards. In the Endangerment 
Finding, we asserted that the statute's ``lack of specific direction'' 
with respect to the timing of findings and of associated regulations 
granted ``procedural discretion'' to issue the actions separately. 74 
FR 66501. But we maintained that the findings created the predicate 
authority and obligation to issue associated emission standards and 
acknowledged that it was at least permissible to issue the findings and 
standards in a single action. 74 FR 66501-02.
    Finalizing the rescission of the Endangerment Finding for lack of 
authority under CAA section 202(a)(1) necessarily means that we lack 
statutory authority to prescribe or maintain GHG emission standards for 
new motor vehicles and engines. Whether we cited to additional evidence 
``reinforcing'' the Endangerment Finding in subsequent rulemakings--and 
whether that additional evidence would itself have been sufficient to 
satisfy CAA section 202(a)(1) absent the Endangerment Finding--is 
irrelevant, as each of these actions rested on the novel statutory 
interpretation adopted for the first time in the Endangerment Finding. 
The best reading of the statute identified and applied in this final 
action necessarily overrides the contrary interpretation relied upon in 
these prior actions and therefore eliminates the legal basis for those 
prior actions. See section V.A and V.B of this preamble for further 
discussion of CAA section 202 and the legal position taken by the EPA 
in actions since 2009. With respect to commenters' precautionary 
arguments, the EPA is not finalizing the proposed alternative basis for 
rescission and repeal based on a new climate science finding by the 
Administrator. See section VI of this preamble for further discussion 
of the bases we are not finalizing at this time.
    Comment: Some commenters argued that the CAA limits our authority 
to rescind prior actions, quoting NRDC v. Regan, 67 F.4th 397, 401 
(D.C. Cir. 2023), for the proposition that the EPA ``has no inherent 
authority'' to reconsider its decisions. These commenters asserted that 
CAA section 202(a)(1) is best read as limiting our rescission authority 
to reconsideration under CAA section 307 or extraordinary 
circumstances, such as mistake or fraud, and that Congress authorized 
us only to update emission standards based on developments in science, 
technology, and economics by providing that we must ``from time to time 
revise'' emission standards ``in accordance with the provisions of this 
section.'' According to these commenters, rescinding the Endangerment 
Finding and associated regulations exceeds that authority.
    Response: The EPA disagrees with these comments, which misconstrue 
the statute and misapply relevant case law. The D.C. Circuit's divided 
opinion in NRDC addressed our withdrawal of a regulatory determination 
for a drinking water contaminant under the Safe Drinking Water Act 
(SDWA) in lieu of issuing a national primary drinking water regulation. 
The panel majority and separate opinion agreed that ``the power to 
decide is normally accompanied by the power to reconsider'' unless 
Congress has `` `limit[ed] [the] agency's discretion to reverse 
itself.' '' 67 F.4th at 401 (quoting New Jersey v. EPA, 517 F.3d 574, 
582-83 (D.C. Cir. 2008)). Interpreting the statutory language at issue, 
the panel majority concluded that SDWA section 1412 imposed such a 
limitation by mandating a sequential, two-step process under which the 
EPA ``shall'' propose a regulation within 24 months ``[f]or each 
contaminant that the Administrator determines to regulate'' in a final 
regulatory determination. Id. (quoting 42 U.S.C. 300g-1(b)(1)(A), 
(b)(1)(E)); but see id. at 408 (Pan, J., concurring in the judgment) 
(arguing that ``nothing in the [SDWA] forbids the EPA from withdrawing 
a determination to regulate'' because the ``statute is silent on that 
issue''). NRDC did not challenge the established background principle 
that agencies may reconsider prior actions taken under a statutory 
authority absent statutory indicia to the contrary, and the language of 
CAA section 202(a)(1) is different in virtually every respect from the 
content, sequence, and timing requirements in SDWA section 1412.
    CAA section 202(a)(1) sets out authority to regulate under certain 
conditions and provides that such regulations should be revised over 
time. The statutory language ``from time to time revise'' refers to the 
emission standards promulgated when the Administrator exercises 
``judgment'' to determine that an air pollutant emitted from new motor 
vehicles or engines causes or contributes to air pollution which may 
reasonably be anticipated to endanger public health or welfare. Beyond 
reference to the Administrator's ``judgment,'' the statute contains no 
language constraining or limiting the power to reconsider a finding. 
Nor does CAA section 202(a)(1) require the EPA to establish regulations 
by a certain date or for certain pollutants, unlike many other 
provisions in CAA section 202 and throughout the CAA.\83\ Had Congress 
intended to restrict the repeal of CAA section 202(a)(1) emission 
standards based on the Administrator's findings of endangerment and 
contribution, it knew how to do so,as evidenced by provisions elsewhere 
in the statute imposing such restrictions.\84\ Additional statutory 
language providing that emission standards must be revised ``in 
accordance with the provisions of this section'' merely clarifies that 
revised standards are subject to the same conditions as the original 
standards (i.e., an applicable endangerment finding and the various 
substantive requirements for standards set out in CAA section 
202(a)(2), (a)(3), et seq.). Finally, we note that this understanding 
of our reconsideration authority is rooted in consistent practice; as 
noted above, we assumed that we had such authority when denying 
reconsideration petitions on the merits in 2010 and 2022.
---------------------------------------------------------------------------

    \83\ Compare 42 U.S.C. 7409 (mandating NAAQS for criteria 
pollutants by a date certain), 7412 (mandating regulation of 
hazardous air pollutants from listed source categories by a date 
certain), 7429 (same for waste combustors), 7521(a)(3)(B)(ii) 
(mandating minimum emission standards for HD vehicles for certain 
pollutants by a date certain), 7521(a)(6) (mandating certain control 
devices for LD vehicles after a date certain), 7521(b), (g)-(l) 
(mandating various emission standards for enumerated pollutants by 
dates certain).
    \84\ Notably, Congress provided in CAA section 202(b)(1)(C) that 
the EPA cannot relax the pollutant-specific emission standards 
required ``under [CAA section 202(b)]'' when revising such standards 
``under [section 202(a)(1)].'' 42 U.S.C. 7521(b)(1)(C). That 
limitation on revision authority does not apply to emission 
standards promulgated solely under CAA section 202(a) as an exercise 
of the Administrator's judgment. Comparable provisions appear 
elsewhere in the statute as well. See, e.g., 42 U.S.C. 7502(e) 
(providing that if the EPA ``relaxes'' a NAAQS, it must within 12 
months require ``controls which are not less stringent than the 
controls applicable to areas designated nonattainment before such 
relaxation'').
---------------------------------------------------------------------------

    With respect to CAA section 307 and commenters' asserted mistake or 
fraud limitation, the EPA assumes commenters meant to suggest that we 
may only reconsider prior actions through mandatory reconsideration 
under CAA section 307(d) or by meeting common law standards originally 
developed for voiding a contract. We are not aware of any precedent 
establishing a mistake or fraud limitation and cannot agree that there 
is a plausible basis for doing so given the well-established principle 
that agencies may reconsider prior actions unless Congress provides 
otherwise. As to CAA section 307, this rulemaking followed the 
applicable procedural requirements set out in that provision. The 
mandatory reconsideration procedure in CAA

[[Page 7705]]

section 307(d)(7)(B) applies when a petitioner was unable to raise a 
centrally relevant objection during a public comment period, not to an 
EPA-initiated reconsideration.
    Comment: A few commenters raised retroactivity concerns with the 
rescission and repeals, arguing that Congress must expressly authorize 
rules with retroactive effect and that repealing GHG emission standards 
for MY 2026 and earlier vehicles would be impermissibly retroactive. 
Some of these commenters cited Bowen v. Georgetown University Hospital, 
488 U.S. 204 (1988), as setting out a clear statement rule for 
authority to issue retroactive rules.
    Response: The EPA disagrees that repealing GHG emission standards 
for MY 2026 and earlier vehicles would have retroactive effect, as 
nothing in this final action ``attaches new legal consequences to 
events completed before its enactment.'' Landgraf v. USI Film Prods., 
511 U.S. 244, 270 (1994). As a practical matter, manufacturers have 
already completed virtually all of the activities necessary to comply 
with the GHG emission standards for prior MY vehicles. Motor vehicles 
and engines have been designed and sold with compliant control 
mechanisms, the proverbial eggs are, in that sense, already scrambled. 
Repealing the GHG emission standards for prior MYs relieves only a 
limited set of compliance obligations, including certain ongoing 
reporting requirements, and does not impose any new or additional 
obligations on regulated parties.\85\ We conclude that repeal of the 
GHG emission standards for prior MYs is necessary notwithstanding the 
limited practical effect to ensure that our regulations are squarely 
grounded in statutory authority and avoid the inconsistency that would 
be created by retaining these regulations while repealing standards for 
future MY vehicles and engines. For further explanation of the impacts 
of the rescission and repeals, see section VII of this preamble and the 
Response to Comments document. For discussion of the distinct subject 
of reliance interests, see section IV.A.2 of this preamble.
---------------------------------------------------------------------------

    \85\ For example, any contractual provisions between the seller 
(e.g., dealership) and a vehicle purchaser would not be changed or 
disrupted solely by operation of this final action.
---------------------------------------------------------------------------

2. Issues Raised Regarding Reliance Interests
    To better assess potential reliance interests, the EPA sought 
comment on whether regulated parties or other stakeholders have relied 
in a significant and legally cognizable manner on our assertion of 
authority to regulate GHG emissions from new motor vehicles and engines 
and the requirements imposed pursuant to that asserted authority. We 
noted that such reliance may be relevant considerations to be weighed 
against competing rationales when deciding whether to change the 
Agency's position under relevant case law, including DHS v. Regents of 
University of California, 591 U.S. 1 (2020). Specifically, we sought 
comment on potential reliance interests by regulated parties that have 
expended resources complying with existing standards, including by 
pricing compliance into costs for consumers, and on potential reliance 
interests by other stakeholders on the Endangerment Finding and GHG 
emission standards.
    With respect to regulated parties, we noted that because many 
compliance costs are incurred as part of research and development and 
during manufacturing, with the exception of the need to purchase 
compliance credits, this final action would have small to no impacts on 
MYs 2012-2024, limited impacts for MYs 2024-2026, and entirely relieve 
future regulatory obligations for MY 2027 and beyond. We also noted 
that the rescission and repeals would not mandate any particular 
response by regulated parties and would instead provide additional 
flexibility by relieving obligations. For discussion of regulatory 
tools available to address transitional compliance concerns, see 
sections III.A, VI.B, and VI.C of the preamble to the proposed rule. We 
also noted that regulated parties may have an interest in national 
uniformity and preemption and discussed the continued applicability of 
CAA section 209(a) and other sources of Federal preemption in sections 
III.A and VI.A of the preamble to the proposed rule.
    With respect to other potential interests held by regulated parties 
and additional stakeholders, we noted that the rescission and repeals 
would have no impact on existing regulatory provisions for criteria 
pollutant and air toxics emission standards or for the separate economy 
and fuel-efficiency standards administered by NHTSA. We explained that 
general interests in regulating GHG emissions based on global climate 
change concerns would not justify retaining the GHG regulatory program 
for new motor vehicles and engines in the absence of statutory 
authority, and that potential dangers from exposure to the six gases 
combined in the Endangerment Finding would continue to be regulated 
when appropriate under other, more specific grants of statutory 
authority. For further discussion, see sections III.A and IV.A.2 of the 
preamble to the proposed rule. Finally, we recognized that the EPA has 
since relied on the Endangerment Finding as authority for GHG 
regulatory actions under other provisions of the CAA, including several 
vacated by the Supreme Court,\86\ and noted that we would address those 
actions as appropriate in separate rulemaking proceedings.
---------------------------------------------------------------------------

    \86\ See West Virginia, 597 U.S. 697; UARG, 573 U.S. 302.
---------------------------------------------------------------------------

    The EPA received significant comments on reliance interests from a 
variety of regulated parties and interested stakeholders that reflected 
diverging views on whether we should consider reliance interests, what 
reliance interests we should consider, and how such interests should be 
addressed in this rulemaking. We agree with commenters' suggestion that 
under Loper Bright, it is unclear how reliance interests could justify 
retaining or prolonging a regulatory action that is inconsistent with 
the best reading of the statute. Nevertheless, we carefully reviewed 
public comments to assess whether any aspects of this final action 
should be adjusted to account for reliance interests where possible to 
do so consistent with our statutory authority. Ultimately, we are 
finalizing the primary legal basis for the rescission and repeals as 
proposed along with the additional futility conclusions discussed 
above. Reliance interests raised by adverse commenters did not change 
our proposed view that a lack of statutory authority necessitates 
rescinding the Endangerment Finding and repealing the GHG emission 
standards and deprives us of discretion to issue revised regulations 
establishing a phase-out or wind-down approach. For more detailed 
comment summaries and responses, see the Response to Comments document.
    Comment: Commenters argued that reliance interests are irrelevant 
when an agency proposes to rescind a prior action that exceeded its 
statutory authority. These commenters argued that because the EPA 
lacked statutory authority to issue the Endangerment Finding and 
associated GHG regulations, no amount of reliance could justify 
continuing a program that wields a power neither Congress nor the 
Constitution granted to the Agency. At least one commenter also cited 
Justice Thomas's dissenting opinion in Regents, which argued that 
reliance interests are irrelevant when an agency rescinds an unlawful 
prior action. 591 U.S. at 60.
    Response: The EPA appreciates these comments and agrees that 
reliance

[[Page 7706]]

interests alone could not justify retaining or extending a regulation 
that exceeds our statutory authority. Particularly after Loper Bright, 
the relevance of reliance interests under such circumstances is 
unclear.\87\ On one hand, courts have consistently held that agencies 
must consider significant reliance interests when exercising their 
authority to change positions. On the other, these cases typically 
addressed reliance interests in contexts where the agency faced a 
choice between competing policy options. Under Chevron, that included 
the choice between permissible interpretations of the relevant statute. 
Now that Chevron has been overruled, however, the range of agency 
discretion is considerably narrowed because the best reading of the 
statute controls. Loper Bright, 603 U.S. at 401-04. When the statute is 
best read as conferring discretion, courts use ordinary tools of 
interpretation to ``fix the boundaries of the delegated authority'' and 
ensure the agency reasonably exercises its discretion within those 
boundaries. Id. at 395.\88\
---------------------------------------------------------------------------

    \87\ Since Loper Bright, the Supreme Court has returned to the 
reliance interest prong of the change-in-position doctrine only in a 
case involving arbitrary and capricious claims that did not turn on 
questions of statutory interpretation. See Wages & White Lion, 604 
U.S. at 567.
    \88\ In Loper Bright, the Supreme Court also stated that 
Chevron's overruling is not a sufficient reason to invalidate 
``specific agency actions'' upheld under the Chevron framework. 603 
U.S. at 412. That stare decisis limitation does not apply to the 
rescission and repeals in this final action, which is a separate and 
subsequent decision in which the EPA is changing its interpretation 
of CAA section 202(a)(1) and repudiating our prior actions as 
exceeding our statutory authority. See, e.g., Ohio Telecom Ass'n v. 
FCC, 124 F.4th 993, 1002 (6th Cir. 2025) (courts are not bound by 
prior holdings applying the Chevron framework in the same statutory 
context when the agency action on review ``is not the `specific 
agency action' '' upheld in the prior decision).
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    Relevant precedents decided before Loper Bright do not resolve the 
question whether the illegality of a prior agency action is a 
sufficient explanation for rescission under the change-in-position 
doctrine. In Encino Motorcars, LLC v. Navarro, 579 U.S. 211 (2016), for 
example, the Supreme Court applied the Chevron framework to an agency's 
decision to alter a longstanding statutory interpretation that applied 
an exemption to a class of employees. The Court found the change 
arbitrary and capricious because the agency failed to consider 
industry's legitimate reliance on the applicability of the exemption. 
Id. at 221-22. The decision appeared to assume for purposes of deciding 
the case that either interpretation could be permissible under Chevron 
and did not address whether, had the prior interpretation been 
unlawful, that determination would have been a sufficient explanation 
for the new interpretation.
    In Regents, the Court found the rescission of a deferred action 
memorandum arbitrary and capricious for failing to consider legitimate 
reliance interests, even where the memorandum had provided that the 
deferred action program ``conferred no substantive rights.'' 591 U.S. 
at 30. That holding was informed by the Court's decision not to address 
whether the agency lacked statutory authority to issue the original 
memorandum. Compare id. at 25-28, 32, with id. at 40, 60 (Thomas, J., 
dissenting) (arguing that reliance interests were irrelevant because 
the agency was rescinding an unlawful action). Rather, the Court noted 
that the agency had taken the view that it retained discretion in 
deciding how to wind down the program, id. at 25, and assumed on that 
basis that the agency could have accommodated reliance interests given 
its ``considerable flexibility in carrying out its statutory 
responsibility,'' id. at 32.
    The conclusion that we lack statutory authority under CAA section 
202(a)(1) to regulate GHG emissions in response to global climate 
change concerns leaves us without discretion to issue revised 
regulations. There is no ``water under the bridge'' exception for 
unlawful agency action, and the change-in-position doctrine does not 
expand an agency's statutory authority for the purpose of addressing 
reliance interests. The Supreme Court previously rejected our efforts 
to reduce compliance burdens triggered by our GHG regulatory program in 
UARG, holding that the Tailoring Rule exceeded our statutory authority 
and demonstrated that the underlying Triggering Rule was itself 
unlawful. 573 U.S. at 328. Here, retaining or altering the GHG emission 
standards because of reliance interests would similarly require 
rewriting the statute to confer ``power that neither Congress nor the 
Constitution'' gave us. Regents, 591 U.S. at 60 (Thomas, J., 
dissenting). Adopting regulatory provisions to phase out or winddown 
the Endangerment Finding and GHG emission standards would be 
inconsistent with the conclusion that we lack statutory authority for 
the program, potentially rendering both aspects of the action arbitrary 
and capricious. CAA section 202(a)(1) is binary in this respect. Our 
authority to delay or adjust standards under additional provisions of 
CAA section 202 cannot be accessed without first passing through the 
narrow gate of CAA section 202(a)(1).
    Nevertheless, as discussed below and further detailed in the 
Response to Comments document, we reviewed and considered reliance 
interests raised by stakeholders in the interest of transparency and 
public engagement. This discussion is not and should not be understood 
as a concession that such consideration is legally required, or that 
any disagreement with our consideration of particular reliance 
interests undermines this final action.
    Comment: Many commenters supportive of the proposal argued that 
stakeholders could not have significant reliance interests warranting 
retention of the Endangerment Finding and GHG emission standards given 
the nature of the rescissions and repeals. These commenters noted that 
the rescission and repeals would relieve rather than impose 
obligations, and that manufacturers and others remain free to move 
forward with current plans and designs.
    Response: The EPA agrees that this final action relieves compliance 
obligations under the CAA and does not require anything further of 
regulated parties with respect to GHGs. As noted at proposal, unlike 
the GHG emission standards, this final rescission and repeal action 
increases flexibility and does not require manufacturers to change 
plans if doing so would raise timing concerns within the MY structure 
of the new motor vehicle and engine market. With respect to 
informational labels and warranties, manufacturers may elect to proceed 
with implementation or not, and nothing in this final action 
invalidates existing labels or contracts entered into between or among 
manufacturers, suppliers, and purchasers. We acknowledge that regulated 
parties have already incurred compliance costs because of the GHG 
emission standards and, particularly with respect to MY 2026 and beyond 
vehicles, have yet to recoup such costs through sales. However, those 
costs were incurred because of the GHG emission standards rather than 
this final action and cannot legitimately be attributed to this final 
action. Nor is it the case that this final action deprives regulated 
parties of a benefit to which they would have been entitled by 
complying with the GHG emission standards. The ``benefit'' of 
compliance is the avoidance of enforcement actions and potential 
penalties under the CAA. This final action does not subject regulated 
parties to increased risk of enforcement.
    The evaluation of reliance interests is a context-specific inquiry 
that turns on the structure of the regulatory program and the nature of 
related private

[[Page 7707]]

arrangements. Courts have recognized that asserted reliance interests 
may be unreasonable in light of the statutory scheme, Am. Fuel & 
Petrochemical Mfrs. v. EPA, 937 F.3d 559, 578 (D.C. Cir. 2019), and 
that the duty to consider reliance interests ``exists in tandem with 
the nature of the reliance interests at issue,'' Am. Petrol. Inst. v. 
DOI, 81 F.4th 1048, 1060 (10th Cir. 2023). CAA section 202 recognizes 
the MY structure of the vehicle market in various ways, including by 
distinguishing between ``new'' and existing vehicles, and we have 
prescribed emission standards on an MY basis for decades. Regulated 
parties are aware that emission standards may be changed and updated 
for future MYs, and, as explained above, face minimal ongoing 
regulatory obligations with respect to past MYs. Cases involving 
legally significant reliance interests by regulated parties have almost 
always involved agency actions that increase regulatory obligations. 
See, e.g., Encino Motorcars, 579 U.S. at 223. Where, as here, the 
agency action relieves regulatory obligations, regulated parties are 
not harmed by the additional flexibility of choosing between 
maintaining their existing plans or altering them as they see fit. See, 
e.g., Arizona v. EPA, 77 F.4th 1126, 1130 (D.C. Cir. 2023) (finding no 
standing to challenge compliance deadline extension because the rule 
``in no way prevented primacy states from proceeding on the original 
schedule'').
    For these reasons, we do not believe that existing compliance 
investments by regulated parties are the type of significant reliance 
interests that warrant special consideration in the context of this 
rulemaking. Even taking them into account, however, such reliance 
interests do not expand the EPA's statutory authority under CAA section 
202(a)(1). As explained above, the best reading of the statute 
precludes us from maintaining a GHG emission standard program for 
vehicles and engines. For further discussion of the bases for this 
final action, see section V of this preamble. For discussion of more 
specific compliance-related concerns, including facility investments 
and compliance credits, see the comment and response summaries below 
and the Response to Comments document.
    Comment: Some commenters asserted that regulated parties have 
invested substantially in complying with the GHG emission standards, 
including by operating, constructing, and announcing facilities to 
manufacture EVs, and that such investments by various actors in the 
supply chain since 2007 amount to $211 billion. These commenters also 
asserted that American manufacturers have been at the forefront of 
developing and deploying responsive technologies, many of which are 
already in production and use. Several of these commenters argued that 
we have not justified proceeding with the rescission and repeals given 
these investments, while others suggested that we should consider a 
more limited repeal of the most recent GHG emission standards rather 
than a broader rescission of the Endangerment Finding.
    A different set of commenters contested the relevance of such 
reliance interests, arguing that many of these investments predate the 
EPA's most recent GHG emission standards, that the most recent GHG 
emission standards improperly bail out automakers' bad EV investments, 
and that automakers are already retreating from EV production for 
independent reasons.
    Response: The EPA acknowledges that certain regulated parties have 
invested significantly in EV production and technologies that have been 
or could be used to comply with the GHG emission standards. We also 
acknowledge that those companies have already reaped significant value 
from this program by selling credits to other companies over the years. 
As discussed above, however, nothing in this final action precludes 
market participants from continuing to make such investments or removes 
any benefit capable of engendering cognizable reliance interests. Nor 
are such investments capable of expanding the EPA's statutory authority 
under CAA section 202(a)(1).
    In general, we do not believe that the investments in EVs and 
related technologies raised by commenters should be attributed 
exclusively to the EPA's current GHG emission standard requirements. 
The new motor vehicle and engine market is complex and informed by a 
wide variety of economic and regulatory considerations. As several 
commenters recognized, some of these investments predate our most 
recent GHG emission standards rulemakings in 2024 for MYs 2027 and 
beyond, and some predate the Endangerment Finding. With respect to 
economic influences, we note that EV demand has been subject to 
significant fluctuation and declines unrelated to this rulemaking. The 
decline in demand is attributable in part to Congress, which recently 
repealed certain tax credits and subsidies for EVs and disapproved 
three prior EPA preemption waivers for EV-forcing California vehicle 
and engine regulations. Changes in consumer preferences are also 
relevant factors. The ability of market participants to earn a return 
on EV and related investments thus turns on a variety of factors that 
ultimately fall outside the Agency's regulatory wheelhouse. The CAA 
requires us to take cost into account in various ways, but it does not 
require the EPA to ensure that EV investments turn a profit.
    Comment: Several commenters asserted that automakers have relied on 
the EPA's GHG emission standards to export vehicles and engines 
overseas on the understanding that products meeting our standards will 
generally also meet international emission standards. These commenters 
argued that the rescission and repeal of U.S. GHG emission standards 
will create uncertainty and raise costs for regulated parties based on 
this additional export market concern.
    Response: The EPA disagrees that possible challenges facing 
automakers in complying with international emission standards are 
legitimate reliance interests that counsel against the rescission and 
repeals. We question the premise that automakers assume their products 
will comply with applicable emission standards in export markets, as 
GHG emission standards are not in place for new vehicles and engines 
(or the same classes of new vehicles and engines) in all export markets 
and vary significantly among nations where such GHG emission standards 
are in place and applicable to imports. We also note that many 
automakers structure design, marketing, and production strategies to 
account for differing emission standards across various markets, both 
for GHG emissions and for emissions of criteria pollutants and air 
toxics. Regardless, as discussed above, nothing in this final action 
prevents regulated parties from maintaining current plans to the extent 
that they believe doing so is a convenient way to more easily 
participate in export markets.
    Comment: Several commenters raised concerns about the GHG 
compliance credit regime that some regulated parties have used to 
comply with the existing regulations. These commenters argued that 
companies have accumulated credits over the past 15 years and, in some 
cases, already booked those credits as assets. Several of these 
commenters presented this as a reason not to finalize the rescission 
and repeals, while others requested a wind-down period.
    Response: The EPA has consistently maintained that regulated 
parties lack a property right in compliance credits or

[[Page 7708]]

their use to demonstrate compliance.\89\ We note that the relevant 
universe of compliance credits potentially impacted by this final 
action is much smaller than some commenters suggest, as credits are 
specific to compliance years and expire after five years.\90\ Credits 
for MY 2020 and previous vehicles are expired, and potential credits 
for MY 2026 and beyond vehicles are not yet in place. These 
considerations lead us to conclude that the impact on stakeholders 
arising from compliance credit issues will be relatively small and 
temporary. Additionally, as discussed within the Response to Comments 
document, the EPA has reduced the value of emission credits within 
trading programs previously.
---------------------------------------------------------------------------

    \89\ See 40 CFR 86.1865-12(k)(2) (``There are no property rights 
associated with CO2 credits generated under this subpart. 
Credits are a limited authorization to emit the designated amount of 
emissions. Nothing in this part or any other provision of law shall 
be construed to limit EPA's authority to terminate or limit this 
authorization through a rulemaking.'').
    \90\ See 73 FR 25692 (May 7, 2010) and 40 CFR 86.1865-12(k)(2). 
Relatedly, see 40 CFR 86.1861-17(b)(3) (LD and MD vehicle credits); 
40 CFR 1036.740(d) (HD engine credits), and 1037.740(c) (HD vehicle 
credits).
---------------------------------------------------------------------------

    More fundamentally, our lack of statutory authority to retain the 
GHG emission standards means that we lack discretion to issue revised 
regulations that incorporate a phase-out or wind-down approach to 
address concerns related to this compliance mechanism.
    Comment: Some commenters asserted that State and local governments 
have relied on the EPA's GHG regulatory program as a baseline to craft 
climate policy and invested substantial resources in EV manufacture and 
development, EV infrastructure, including charging stations, and 
transportation electrification more generally. Several of these 
commenters also asserted that States have relied on co-pollutant 
reductions from the GHG emission standards to satisfy their compliance 
obligations under the NAAQS for criteria pollutants. These commenters 
argued that, given such reliance interests, the EPA should first 
conclude its rescission of the Endangerment Finding, including any 
subsequent litigation, before repealing the associated GHG emission 
standards.
    Response: The EPA acknowledges the comments and information 
received from many States and local governmental entities, including 
both the comments summarized above and comments from States urging us 
to finalize the proposed rescission and repeals. We are aware that 
State and local governments have, at various times, encouraged and 
supported the EPA's GHG regulatory program and undertaken initiatives 
to address perceived global climate change concerns. We disagree that 
this final action disrupts State and local policy initiatives that have 
used the Endangerment Finding or subsequent actions as a baseline, 
however. So long as such policy initiatives are consistent with 
applicable Federal law, they may continue, and nothing in this final 
action changes the status quo for such initiatives. To the extent 
commenters refer more generally to a practice of supporting and 
imitating aspects of the EPA's GHG regulatory program, that practice 
does not depend upon our continuing to maintain the program. To the 
extent commenters refer to information, funding, or technical support 
that has been integrated into such programs, we note that any such 
provisions are not part of the Endangerment Finding or GHG emission 
standards subject to rescission and repeal and that commenters did not 
point to a specific counterexample that should be considered in this 
rulemaking. Nothing in this final action addresses any separate 
statutory obligation the EPA may have to provide information, make 
grants, or provide technical support.
    With respect to commenters' assertions about State and local 
government investments in EV technology and infrastructure, we disagree 
that such reliance interests counsel against the rescission and repeals 
for substantially the same reasons discussed above regarding regulated 
parties. Nothing in this final action precludes such investments, and 
nothing in the prior actions and rules subject to this final action 
entitled States or local governments to any particular benefits or 
return on their investments. The extent to which such investments end 
up supporting these entities' policy goals turns on a complex 
combination of unrelated regulatory and economic factors.
    Finally, with respect to the NAAQS program, we note that the EPA 
has not established air quality criteria or NAAQS for GHGs under CAA 
sections 108 and 109, either individually or under the Endangerment 
Finding's definitional grouping of the six ``well-mixed'' GHGs. As 
explained in section VI of this preamble, this final action does not 
impact any of the EPA's criteria pollutant emission standards that are 
more directly relevant to NAAQS attainment or NHTSA's separate fuel-
economy and fuel-efficiency regulations that also may result in co-
benefits. We acknowledge that many regulated parties elected to comply 
with the GHG emission standards using technologies that also produce 
reductions in criteria pollutant emissions, including by shifting 
toward EVs or otherwise installing control equipment with co-benefits. 
Nevertheless, we disagree that such co-benefits engender significant 
reliance interests relevant to this rulemaking or that such 
considerations justify retaining the GHG regulatory program in the 
absence of statutory authority, particularly because the EPA has 
additional, express statutory authorities to address criteria pollutant 
emissions relevant to NAAQS attainment.
    As a practical matter, criteria pollutant emission reductions 
attributable to the GHG emission standards are small in absolute terms 
and unlikely to materially impact States' attainment of the NAAQS. In 
recent GHG emission standard rulemakings, we stated our expectation 
that manufacturers would comply with the standards by shifting to EV 
production, which we predicted would lower criteria pollutant emissions 
from new motor vehicles, increase emissions from the power sector to 
accommodate additional electricity demand, and marginally decrease 
emissions attributed to fossil-fuel refineries given decreased demand 
for diesel and gasoline. For the 2024 HD GHG Emission Standards Rule, 
for example, we estimated small net decreases in NOX, VOCs, 
and sulfur dioxide (SO2) emissions and a small net increase 
in fine particulate matter (PM2.5) emissions.\91\ For 
context, the emission decreases projected for HD vehicles amount to 
less than 1 percent of national NOX emissions and less than 
0.01 percent of VOC and SO2 emissions for 2024.\92\ As 
discussed above, this final action has the potential to alter vehicle 
emissions on a prospective basis given the MY-by-MY nature of the 
market and the applicability of CAA section 202(a) emission standards 
to ``new'' motor vehicles and engines. Thus, any criteria pollutant 
emission reductions realized in practice as a co-benefit of GHG 
emission standards for

[[Page 7709]]

MY 2025 and earlier are not impacted by this final action. Moreover, 
this final action does not require regulated parties to change existing 
plans, but rather, provides additional flexibility moving forward, 
meaning whether any and by how much anticipated reductions occur in 
practice turns on decisions by multiple independent actors.
---------------------------------------------------------------------------

    \91\ See, e.g., 89 FR 29440, 29455 (Apr. 22, 2024).
    \92\ Compare id. (estimating NOxemission reductions 
of 53,051 tons, VOC emission reductions of 7,272 tons, and 
SO2 emission reductions of 295 tons), with U.S. 
Environmental Protection Agency: Air Pollutant Emissions Trends Data 
(Apr. 2025) (estimating NOX emissions of 6,940,000 tons, 
VOC emissions of 12,783,000 tons, and SO2 emissions of 
1,675,000 tons). National emissions are the appropriate comparator 
because NAAQS attainment is evaluated by criteria pollutant levels 
from all sources. Estimates in the 2024 HD GHG Emission Standards 
Rule evaluated emissions from all HD vehicles MY 2027 and beyond 
regardless of in-use location.
---------------------------------------------------------------------------

    For these reasons, we cannot agree that States have significant 
reliance interests in the permanence of GHG emission standards in 
connection with NAAQS attainment. Potential impacts are limited to 
marginal foregone emissions reductions in future years. The co-benefits 
estimated in prior rulemakings are necessarily speculative because they 
turn on compliance decisions by manufacturers in future years and 
purchasing decisions by consumers (i.e., whether manufacturers comply 
as expected by shifting to EVs or adopting different technologies, and 
whether consumer demand for vehicles and engines, including relative 
demand for traditional vehicles versus EVs, plays out as expected). 
Reductions in such co-benefits are also uncertain because they depend 
on how regulated parties choose to proceed in future years in light of 
this final action. Separate and apart from this rulemaking, CAA section 
202(a) makes clear that the content of the EPA's vehicle and engine 
emission standards are subject to revision at any time, and we have 
repeatedly revised the GHG emission standards for future MYs since 
2010.\93\ See, e.g., Am. Fuel & Petrochemical Mfrs., 937 F.3d at 578 
(finding reliance on particular biofuel volume decisions unreasonable 
given the EPA's express discretion to revise requirements).
---------------------------------------------------------------------------

    \93\ Unlike CAA sections 109, 111, 112, and 129, for example, 
CAA section 202(a)(1) requires the EPA to revise new motor vehicle 
and engine emission standards ``from time to time'' without 
mandating a particular review timeline or date-certain deadline for 
periodic revisions. Compare 42 U.S.C. 7521(a)(1), with id. 
7409(d)(1), 7411(b)(1)(B), 7412(d)(6), (f)(2), 7429(a)(5).
---------------------------------------------------------------------------

    The appropriate mechanisms for addressing these concerns are the 
EPA's express statutory authorities bearing on criteria pollutant 
emissions and the NAAQS. We encourage States to participate in future 
rulemakings for criteria pollutant emission standards under CAA section 
202 and other rulemakings impacting criteria pollutant emissions from 
stationary sources. NAAQS attainment is evaluated based on measured 
levels in the ambient air, and the statute provides a number of 
regulatory tools to the EPA and States to promote attainment. For 
example, the EPA may account for the impact of exceptional events and 
international emissions under certain circumstances and require States 
to adopt additional controls when their emissions contribute to 
nonattainment in another State. And States have discretion in 
formulating plans to attain the NAAQS, which may include certain 
mobile-source compliance programs, additional controls for new and 
existing stationary sources, and other emissions-reduction strategies. 
For additional discussion of our efforts to assist States in attaining 
the NAAQS, see the authorities, programs, and guidance documents 
referenced in the Response to Comments document.
    Comment: Commenters with a variety of perspectives asserted that we 
failed to consider the interests of vehicle purchasers, including those 
with future commitments to purchase clean vehicles and past purchasers 
of vehicles with battery warranties and certain in-use performance 
requirements. Several of these commenters also stated that current GHG 
emission standards were projected to save consumers thousands of 
dollars per vehicle in fuel costs over the life of the car given 
continued improvements in efficiency and the availability of cleaner 
vehicle models, including from increased EV market penetration.
    Response: The EPA disagrees that such interests counsel against 
finalizing the rescission and repeal and notes that commenters 
misconstrue the impact of this final action and the requirements in the 
GHG emission standards. Nothing in this final action requires regulated 
parties to change existing plans, and that logic applies to future 
purchase commitments as well. If States, municipalities, or businesses 
wish to fulfill existing purchase requirements or choose to purchase 
such vehicles in the future, they remain free to do so. Commenters 
provided no reason to believe that these voluntary purchase agreements 
were entered into to facilitate compliance with the GHG emission 
standards, and we are not aware of any reason that States, 
municipalities, or businesses not subject to the standards (i.e., not 
manufacturers or suppliers) would be involved in the design or 
production of compliance vehicles or engines. To the extent commenters 
meant to assert that the purchases were intended to satisfy local 
emission-reduction targets, many such targets are voluntary, and 
nothing in this final action prevents entities from proceeding with or 
adjusting existing strategies. With respect to past purchases, the 
battery warranty and in-use performance requirements cited by 
commenters are not set to begin until MY 2027. For this reason, 
purchasers cannot reasonably have relied on these requirements for past 
purchases, and any battery warranties or performance guarantees were 
entered into on a voluntary basis separately from regulatory 
requirements. See the Response to Comments document for additional 
discussion of emissions warranties and limited additional ongoing 
obligations for certain MY 2025 and earlier vehicles.
    As to estimated fuel cost savings arising from the predicted 
impacts of increased market penetration of EVs, we note that fuel costs 
savings per vehicle for the consumer were not a substantive 
justification for the Endangerment Finding. Rather, we included the 
discussion cited by commenters in the RIAs completed for more recent 
standards rulemakings. Commenters did not support their contention that 
existing purchasers reasonably relied on the estimated fuel costs 
savings per vehicle from the GHG emission standards in purchasing a 
vehicle. Moreover, as discussed in the DRIA and RIA for this final 
action, we significantly adjusted prior estimates of the cost savings 
attributable to GHG emission standards. Our prior estimates were based 
on interdependent assumptions and predictions regarding future choices 
by unrelated actors and global fluctuations in fossil-fuel and energy 
supply and demand. Intervening events since our estimates in 2024, 
including legislative, policy, and global market changes, have already 
demonstrated the significant range of uncertainty inherent in the 
analysis. See the RIA for this final action and subsequent sections of 
this preamble for further discussion.
    Comment: Finally, several commenters argued generally that we 
failed to consider reliance interests involving the U.S. economy, 
national security, global geopolitics, and global trade. These 
commenters argued that we must consider these interests to finalize a 
valid rule.
    Response: The EPA does not believe these general assertions raise 
specific and legitimate reliance interests that could or must be taken 
into account in this rulemaking as reliance interests. Case law 
provides that such generalized concerns are not the type of reliance 
interests that require special consideration.\94\ We endeavored to take

[[Page 7710]]

these general concerns into account in this rulemaking when 
appropriate, including by carefully reviewing and considering the ways 
in which Congress addressed international emissions issues in the CAA. 
However, as discussed in section V of this preamble, the controlling 
statutory language in CAA section 202(a) does not authorize the Agency 
to regulate GHG emissions in response to such global concerns. The 
possibility that interpreting CAA section 202(a) to authorize 
regulation in response to global climate change concerns would render 
the statute broad enough to encompass global political and economic 
relations reinforces our view of the best reading of the statute.
---------------------------------------------------------------------------

    \94\ See, e.g., Am. Petrol. Inst., 81 F.4th at 1061 (``general 
assertions of reliance simply do not rise to the level of ongoing 
and serious reliance interests necessary to trigger a duty . . . to 
provide a more detailed explanation''); Am. Hosp. Ass'n v. Azar, 983 
F.3d 528, 540 (D.C. Cir. 2020) (rejecting general assertion of 
reliance interests where party ``identified no reliance interests 
the action might be upending'').
---------------------------------------------------------------------------

B. Repeal of New Motor Vehicle and Engine GHG Emission Standards

    As noted above, CAA section 202(a)(1) directs the Administrator to 
prescribe ``standards applicable to the emission of any air pollutant 
from any class or classes of new motor vehicles or new motor vehicle 
engines, which in his judgment cause, or contribute to, air pollution 
which may reasonably be anticipated to endanger public health or 
welfare.'' This core directive has remained substantially the same 
since Congress enacted the Motor Vehicle Pollution Control Act of 
1965.\95\ Thus, a necessary condition to regulating emissions from new 
motor vehicles and engines is a finding--an ``endangerment finding''--
that emissions of an air pollutant from a class or classes of new motor 
vehicles or engines cause or contribute to air pollution which may 
reasonably be anticipated to endanger public health or welfare.
---------------------------------------------------------------------------

    \95\ Public Law 89-272, 79 Stat. 992, 992-93.
---------------------------------------------------------------------------

    For the reasons discussed in sections V.A and V.B of this preamble, 
we are rescinding the Endangerment Finding for GHG emissions from new 
motor vehicles and new motor vehicle engines and, on that basis, 
repealing all existing GHG emission standards for passenger cars, 
light-duty trucks, motorcycles, buses, medium-duty vehicles, and heavy-
duty vehicles and engines. The Endangerment Finding has served as the 
EPA's basis for regulating GHG emissions from new motor vehicles and 
new motor vehicle engines since 2009. Absent findings of endangerment 
and causation or contribution, the EPA lacks statutory authority to 
prescribe standards for those emissions under CAA section 202(a)(1). 
Thus, we must cease prescribing and enforcing standards applicable to 
the emission of that pollutant from new motor vehicles or new motor 
vehicle engines and are rescinding existing standards no longer 
authorized by statute.
    For the reasons discussed in section V.C of this preamble, we also 
find that the futility of GHG emission standards for new motor vehicles 
and engines warrants repealing the standards separate and apart from 
the rescission of the Endangerment Finding. Courts have long recognized 
the background principle that Congress does not intend agencies to 
expend resources on fruitless efforts, particularly when those efforts 
come at the expense of express statutory obligations for which material 
progress is more readily achievable. Given the immense costs to 
manufacturers, auto workers, and American consumers, as well as the 
burden of administration placed on the EPA and other relevant Federal 
and State entities, it would be unreasonable to retain a regulatory 
program that does not materially further any statutory objective 
relevant to the global climate change concerns relied upon by the 
Agency in the 2009 Endangerment Finding. This conclusion is consistent 
with the precautionary nature ascribed by relevant court decisions to 
the statutory language of CAA section 202(a)(1), which we recognize 
does not require showing that emission standards entirely or even 
substantially address the identified dangers. Rather, the available 
information indicates that GHG emission standards have no impact at all 
on the adverse impacts identified in the Endangerment Finding beyond a 
de minimis level that falls well below inherent variability in 
measurements of GMST and GSLR.
    Accordingly, the EPA is repealing all standards and associated test 
procedures adopted to limit the emission of GHGs under CAA section 
202(a)(1) for highway LD, MD, and HD vehicles and engines. The EPA 
notes that, for LD vehicles, the Energy Policy and Conservation Act of 
1975 (EPCA) \96\ and the 2007 EISA authorize NHTSA to administer the 
CAFE program and fuel economy labeling program. These statutes also 
direct the EPA to determine compliance values for manufacturers subject 
to the CAFE program and the fuel economy labeling program. Importantly, 
these statutory obligations are distinct from the EPA's authority under 
CAA section 202(a) and from the EPA's decisions since 2009 to regulate 
GHG emissions under CAA section 202(a). As explained in section VII of 
this preamble, we did not propose to reopen and are not finalizing in 
this rulemaking any changes to regulatory provisions related to our 
statutory roles in these NHTSA programs. Likewise, we did not propose 
to reopen and are not finalizing in this rulemaking any changes to 
criteria pollutant and air toxics standards for highway LD, MD, and HD 
vehicles and engines under CAA section 202(a).
---------------------------------------------------------------------------

    \96\ Public Law 94-163, 89 Stat. 871 (1975).
---------------------------------------------------------------------------

V. Rescission of the Endangerment Finding

    In this section, the EPA provides its bases for rescinding the 2009 
Endangerment Finding that initiated the Agency's unprecedented 
assertion of authority to regulate GHG emissions in response to global 
climate change concerns. Upon careful review of the text, structure, 
and history of CAA section 202(a)(1) and related provisions and 
consideration of comments received on the rationales set out in 
sections IV.A and V.C of the preamble to the proposed rule, we are 
finalizing that the Endangerment Finding and GHG regulatory program for 
new motor vehicles and engines exceeds the EPA's statutory authority 
for multiple, independent reasons. This conclusion leads us to finalize 
the proposed repeal of the GHG emission standards in the relevant 
provisions of Title 40 of the CFR as detailed in section VII of this 
preamble.
    Section V.A of this preamble sets out our determination that CAA 
section 202(a) does not authorize the EPA to prescribe standards for 
GHG emissions based on global climate change concerns. Consistent with 
the Agency's practice before 2009, we conclude that this provision 
contains important limitations on what would otherwise be a boundless 
authority. First, CAA section 202(a)(1) is best read as authorizing the 
EPA to identify and regulate ``air pollution'' that threatens to 
endanger health and welfare through local and regional exposure. 
Second, CAA section 202(a)(1) is best read as requiring the EPA to 
apply the statutory standard for regulation as a whole by issuing 
findings as an integral predicate step of an emission standards 
rulemaking and, in doing so, evaluating whether new motor vehicle and 
engine emissions cause or contribute to the danger posed by the 
relevant air pollution. We apply the traditional tools of statutory 
interpretation to CAA section 202(a)(1) and related provisions, as 
informed by the Supreme Court's decisions in Loper Bright and UARG. We 
also explain how the inability of GHG emission standards to have a 
material (i.e., non-de minimis) impact on the dangers attributed to 
global climate change in the Endangerment

[[Page 7711]]

Finding informs our statutory interpretation.
    Section V.B of this preamble explains our determination that CAA 
section 202(a)(1) lacks the clear congressional authorization required 
for the EPA to assert authority to regulate GHG emissions in response 
to global climate change concerns. We review the Supreme Court's 
precedents applying the major questions doctrine, including UARG and 
West Virginia, to conclude that the Nation's policy response to global 
climate change concerns is a question of significant economic and 
political importance and that Congress did not clearly empower the EPA 
to decide by authorizing the Administrator to ``prescribe . . . 
standards'' for emissions from new motor vehicles and engines. We 
further explain that a limiting construction of CAA section 202(a)(1) 
is necessary to avoid serious constitutional concerns with the breadth 
of the provision required by the logic adopted in the Endangerment 
Finding.
    Section V.C of this preamble explains our determination, informed 
by comments and supporting data received in response to the proposed 
rule, that GHG emission standards have not and cannot materially 
diminish the health and welfare impacts attributed to global climate 
change by the Endangerment Finding in any non-de minimis way. As 
presented below, the results of our modeling indicate that even the 
elimination of all GHG emissions from vehicles in the United States 
(both new and existing, and inclusive of LD, MD, and HD vehicles) would 
not yield impacts beyond a level that is well below the range of 
inherent variability in measurement for trends in GMST and GSLR. We 
conclude that these findings lend further support to the basis for 
rescission in section V.A of this preamble given the language of CAA 
section 202(a)(1) and the background principles that Congress does not 
require futile efforts or include de minimis concerns in general 
statutory terms. We further conclude that these findings support 
repealing the GHG emission standards separate and apart from the 
rescission of the Endangerment Finding because it is unreasonable to 
impose immense costs that do not further any legitimate statutory 
purpose.
    Each of the legal bases finalized in this action is separate and 
independent from the others, and the EPA would rescind the Endangerment 
Finding and repeal the GHG emission standards on any one of these bases 
standing alone. The EPA's lack of statutory authority for the 
Endangerment Finding and related regulations would require rescission 
and repeal even if the major questions doctrine did not apply. 
Similarly, the major questions doctrine would require finalizing this 
action even if the EPA had a plausible textual basis for asserting the 
authority to regulate GHG emissions in response to global climate 
change concerns. Each of these bases would require finalizing this 
action even if the futility of the GHG emission standards program were 
not established in the record or were not an adequate basis for this 
final action. Conversely, the futility of the GHG emission standards 
program would support repealing the GHG emission standards even if 
there were an adequate legal basis to retain the Endangerment Finding.
    ``Wisdom too often never comes, and so one ought not to reject it 
merely because it comes late.'' Henslee v. Union Planters Nat'l Bank & 
Tr. Co., 335 U.S. 595, 600 (1949) (Frankfurter, J., dissenting). 
Because the Endangerment Finding and the regulations that rely upon it 
exceed the EPA's authority in multiple respects, fundamental legal 
principles underpinning our constitutional system compel corrective 
action. The Endangerment Finding must be rescinded, and the regulatory 
program it initiated must be, repealed.

A. Best Reading of CAA Section 202(a)(1)

    The Endangerment Finding announced an interpretation of CAA section 
202(a)(1) that permitted the EPA to prescribe standards in response to 
global climate change concerns rather than air pollution that threatens 
public health or welfare through local or regional exposures. We 
asserted that the statute's ``silence'' granted us ``procedural 
discretion'' to issue standalone findings without considering the 
regulatory response required by those findings. In setting out our 
standalone findings, we severed the endangerment analysis (based on 
health and welfare harms attributed primarily to trends in GMST and 
GSLR) from the cause or contribution analysis (based on the estimated 
share of domestic GHG emissions from all new and existing motor 
vehicles and engines in global GHG emissions from all anthropogenic 
sources). In the endangerment analysis, we acknowledged that none of 
the health effects of concern were associated with direct exposure to 
GHGs, and in the contribution analysis, we acknowledged that combatting 
the identified risks would require all contributors--both domestic and 
international and from all anthropogenic sources--to ``do their part.'' 
Throughout, we assumed that the Supreme Court's decision in 
Massachusetts compelled us to read the statute as authorizing the 
regulation of GHG emissions under CAA section 202(a)(1).
    In important respects, the Endangerment Finding and the Supreme 
Court's decision in Massachusetts straddled a transitional period 
regarding the standards for statutory interpretation and understandings 
of agency authority. The breadth of agency discretion, and the question 
whether Congress reserves major policy questions for itself, were 
sharply disputed. Judicial decisions in the intervening fifteen years 
have significantly clarified the law. In Loper Bright, the Supreme 
Court overruled the Chevron doctrine of deference to agency statutory 
interpretation, ruling that statutes ``have a single, best meaning'' 
that is ```fixed at the time of enactment''' and informed, but not 
dictated, by Executive Branch practice. 603 U.S. at 400-01 (quoting 
Wis. Cent. Ltd. v. United States, 585 U.S. 274, 284 (2018)). And in 
West Virginia, the Supreme Court built upon its decisions in UARG and 
Brown & Williamson, among others, by confirming that an agency must 
have more than ``a colorable textual basis'' to claim authority to 
decide major questions of policy that Congress generally reserves for 
itself. 597 U.S. at 723.
    In this subsection, we explain that the best reading of CAA section 
202(a)(1), as informed by Loper Bright and principles of statutory 
interpretation, does not authorize the EPA to assert jurisdiction over 
GHG emissions based on global climate change concerns in a standalone 
endangerment finding. Scientific understanding of environmental issues 
may be continuously evolving, but the scope of the EPA's authority 
under CAA section 202(a)(1) is fixed by the terms Congress used when 
enacting and amending the language of CAA section 202(a)(1) from 1965 
to 1977. Regardless whether GHGs are ``agents of air pollution'' under 
the Act-wide definition of ``air pollutant'' in CAA section 302(g), we 
cannot regulate under CAA section 202(a) unless emissions of the air 
pollutant by new motor vehicles and engines ``cause, or contribute to, 
air pollution which may reasonably be anticipated to endanger public 
health or welfare.'' Because the ordinary meaning, structure, and 
history of CAA section 202(a)(1) and related provisions demonstrate 
that this language targets ``air pollution'' that threatens public 
health or welfare through local or regional exposure, the ``six well-
mixed'' GHGs defined by reference to global climate change concerns 
cannot satisfy this standard. The futility of GHG emission standards in 
addressing the

[[Page 7712]]

health and welfare impacts attributed to global climate change further 
reinforces this interpretation. For these reasons, and on account of 
the additional procedural and analytical errors discussed below, we are 
rescinding the Endangerment Finding.
1. Final Rationale
    Congress originally enacted the language of CAA section 202(a) in 
the Motor Vehicle Pollution Control Act of 1965 and retained it, with 
minor revisions, in 1967, the 1970 CAA, and the 1977 amendments. The 
key language in CAA section 202(a)(1) provides:

    The Administrator shall by regulation prescribe (and from time 
to time revise) in accordance with the provisions of this section, 
standards applicable to the emission of any air pollutant from any 
class or classes of new motor vehicles or new motor vehicle engines, 
which in his judgment cause, or contribute to, air pollution which 
may reasonably be anticipated to endanger public health or 
welfare.\97\
---------------------------------------------------------------------------

    \97\ 42 U.S.C. 7521(a)(1). The key terms ``cause, or 
contribute,'' ``air pollution,'' ``endanger,'' and ``health or 
welfare'' were introduced in 1965. Public Law 89-271, section 101, 
79 Stat. 992, 992-93. The phrase ``may reasonably be anticipated 
to'' was added to the earlier phrase ``which endangers the public 
health or welfare'' in 1977. Public Law 95-95, section 401(d)(1), 91 
Stat. 685, 791.

    Since 1977, CAA section 302(g) has defined the term ``air 
pollutant'' throughout the statute as ``any air pollution agent or 
combination of such agents . . . which is emitted into or otherwise 
enters the ambient air.'' \98\ CAA section 302(h) also provides that 
any reference to ``effects on welfare includes, but is not limited to, 
effects on'' the environment, property, transportation hazards, and 
``on economic values and on personal comfort and well-being.'' \99\
---------------------------------------------------------------------------

    \98\ 42 U.S.C. 7602(g). Notably, the statute does not separately 
define ``air pollution.''
    \99\ 42 U.S.C. 7602(h). This definition took its current form in 
the 1970 CAA and was amended in part in the 1990 CAA Amendments to 
add the final clause ``whether caused by transformation, conversion, 
or combination with other air pollutants.'' See Public Law 91-604, 
84 Stat. 1676, 1710; Public Law 101-549, 104 Stat. 2399, 2470.
---------------------------------------------------------------------------

    The EPA concludes that this statutory language is best read as 
authorizing the Agency to identify and regulate, as an integral part of 
a rulemaking prescribing emission standards, emissions that cause or 
contribute to air pollution that endangers public health and welfare 
through local or regional exposure. This reading is consistent with the 
ordinary meaning of key terms and the statutory structure, our decades-
long implementation of the statute prior to 2009, and background 
principles of statutory interpretation, including default rules for 
proximate cause. This reading is also consistent with the Supreme 
Court's decision in Massachusetts, which addressed distinct issues 
arising out of the denial of a petition for rulemaking and must, as a 
matter of stare decisis, be read in harmony with subsequent decisions 
bearing on the EPA's authority and statutory interpretation, including 
UARG, West Virginia, and Loper Bright.
    Air Pollution. The EPA is finalizing as proposed that CAA section 
202(a)(1) is best read as authorizing the Agency to regulate emissions 
that cause or contribute to air pollution that endangers public health 
or welfare through local or regional exposure. For the purposes of this 
final action, we use the phrase local or regional exposure to 
distinguish air pollution that impacts public health and welfare by its 
presence in the ambient air from ``air pollution'' consisting of six 
``well-mixed'' GHGs that, as conceptualized in the Endangerment 
Finding, impacts public health and welfare only indirectly and not by 
its mere presence in the ambient air. As discussed below, this aspect 
of the final action effectively returns the EPA to its interpretation 
of CAA section 202(a)(1) prior to 2009 and the ordinary meaning of the 
terms Congress selected.
    In CAA section 202(a)(1), Congress identified the object of the 
regulatory authority conferred in the remainder of the section--``air 
pollution which may reasonably be anticipated to endanger public health 
or welfare.'' The EPA's emission standards for new motor vehicles and 
engines were a key part of the congressional design for combatting air 
pollution problems impacting the Nation throughout the 1960s and 1970s, 
particularly in high-population areas. Congress debated these issues 
extensively in advance of the 1970 CAA by reference to the air 
pollution impacting Americans every day, with smog, criteria 
pollutants, and air toxics taking center stage.\100\ To address the 
perceived need for a rapid response, Congress paired the preexisting 
language imported into CAA section 202(a)(1) \101\ with new language in 
CAA section 202(b)(1) requiring that emission standards contain 
significant, short-term reductions in CO, HC, and NOX 
emissions from new LD vehicles and engines.\102\ As discussed elsewhere 
in this preamble, Congress repeatedly returned to this strategy in the 
subsequent decades by adding language to CAA section 202 requiring that 
emission standards achieve further reductions for additional pollutants 
and classes of new motor vehicles and engines.
---------------------------------------------------------------------------

    \100\ See, e.g., S. Rep. 91-1196, at 1, 7 (1970) (expressing 
``concern with direct adverse effects upon public health'' and the 
need for ``definitive knowledge of the causal relationships between 
exposure to air pollution agents . . . and health or welfare under 
varying environmental conditions,'' particularly by reference to 
SOx, PM, CO, HC, and oxidants and the role of mobile 
sources in urban pollution); id. at 18 (describing the three general 
categories of air pollution as criteria pollutants, hazardous air 
pollutants, and certain emissions unique to stationary sources); 
H.R. Rep. 91-1146, at 6 (1970) (explaining that mobile-source air 
pollution ``is particularly dangerous in the highly urbanized areas 
of our country''); 116 Cong. Rec. 32902 (1970) (statement of Sen. 
Muskie) (explaining that the draft legislation targeted mobile-
source contribution to urban pollution, including by requiring 
``emission standards for carbon monoxide, hydrocarbons, and nitrogen 
oxides''); see also 111 Cong. Rec. 10782 (1965) (statement of Sen. 
Muskie) (similarly emphasizing in advance of the original 1965 
legislation that mobile sources accounted for ``50 percent of our 
national air pollution problem'' and focusing in particular on 
``carbon monoxide,'' ``hydrocarbons,'' and ``nitrogen oxides'').
    \101\ See, e.g., S. Rep. 91-1196, at 24 (``The regulatory 
authority in section 202(a) would be essentially the same as 
existing law . . . .''); H.R. Rep. 91-1783 (1970) (conf. report) 
(explaining that the House largely acceded to the Senate bill in 
relevant part).
    \102\ Public Law 91-604, section 6(a), 84 Stat. 1676, 1690. In 
subsequent amendments, Congress modified and expanded upon the 
provisions in CAA section 202(b)(1) to require that emission 
standards achieve further reductions for later model years. See 42 
U.S.C. 7521(b)(1).
---------------------------------------------------------------------------

    Particularly in light of this history, the term ``air pollution'' 
as used in CAA section 202(a)(1) must be construed in context with the 
specific air pollutants and air pollution concerns identified in the 
remainder of CAA section 202. Each of these listed pollution control 
targets share the common quality of causing or contributing to air 
pollution that adversely impacts public health or welfare through local 
or regional exposure to the air pollution itself. CAA section 202 
specifically requires the EPA to prescribe emission standards with 
various minimum content for HCs, CO, NOX, and PM, all of 
which harm human health and the environment through exposure (e.g., 
inhalation and dermal contact) or by causing or contributing to air 
pollution that harms health and the environment through exposure (e.g., 
smog and acid rain).\103\ CAA section 202(l) also requires prescribing 
emission standards under CAA section 202(a)(1) for certain air 
pollutants that qualify as ``toxic'' or ``hazardous'' air pollutants, 
including benzene and formaldehyde.\104\ Neither GHGs nor any of the 
individual ``six well-mixed'' GHGs defined in the Endangerment Finding 
by reference to global climate change concerns appear

[[Page 7713]]

anywhere in CAA section 202.\105\ That pattern holds for the criteria 
pollutants identified in the CAA--CO, lead, ozone (O3), 
nitrogen dioxide (NO2), PM, and SO2--as well as 
the initial list of hazardous air pollutants in CAA section 
112(b)(1).\106\
---------------------------------------------------------------------------

    \103\ See, e.g., 42 U.S.C. 7521(a)(3)(A)(i), (b), (g), (h), (j), 
(k).
    \104\ 42 U.S.C. 7521(l). Such regulations may include fuel 
standards under issued under the EPA's fuel and fuel additive 
authority in CAA section 211.
    \105\ Notably, in the last major amendments to the Clean Air Act 
in 1990, Congress specified ``nonmethane hydrocarbons (NMHC)'' when 
adding additional minimum requirements for HC, CO, NOX, 
and PM emission standards at CAA section 202(g) and (h). Public Law 
101-549, section 203, 104 Stat. 2399, 2474 (emphasis added) 
(codified at 42 U.S.C. 7521(g), (h)).
    \106\ 42 U.S.C. 7412(b)(1).
---------------------------------------------------------------------------

    We find it significant that in subjecting a number of air 
pollutants emitted by new motor vehicles and engines to regulation 
under CAA section 202, Congress did not include substances that are 
potentially indirectly harmful to public health or welfare based on 
elevated global concentrations in the upper atmosphere. That 
conspicuous omission supports the conclusion that emissions subject to 
regulation under CAA section 202(a) are those that cause or contribute 
to air pollution which itself endangers public health or welfare 
through local or regional exposure.\107\ For certain regulated air 
pollutants, the emissions themselves are the air pollution that 
endangers public health or welfare, i.e., emissions are the air 
pollution with adverse health and welfare impacts. An example is CO, 
which can be harmful, and even fatal, to humans at sufficient localized 
concentrations.\108\ For other regulated air pollutants, emissions 
contribute to air pollution that endangers public health or welfare by 
interacting with other airborne chemicals or environmental factors such 
as sunlight to create the air pollution that endangers public health or 
welfare, i.e., the emitted air pollutants are ingredients that create 
the air pollution that endangers public health or welfare in 
combination. An example is acid rain, in which air pollutants such as 
SO2 interact locally and regionally with additional airborne 
chemicals to form acidic precipitation.\109\ Another example is 
NOX, which reacts with VOCs in the presence of heat and 
sunlight to create ground-level ozone as the airborne chemicals are 
carried by wind over geological features amenable to ground-level ozone 
formation.\110\
---------------------------------------------------------------------------

    \107\ As discussed herein, the references to GHGs in the CAA are 
in non-regulatory contexts in which Congress authorized funding for 
various forms of research and grant programs and the Renewable Fuel 
Standard (RFS) program. The choice to limit such references to non-
regulatory solutions and the RFS program, which applies to refiners 
and importers, further supports the conclusion that the CAA section 
202(a) regulatory authority for responding to endangerment does not 
encompass GHG emissions in connection with global climate change 
concerns.
    \108\ U.S. Environmental Protection Agency. (Last updated Oct. 
7, 2025). Carbon Monoxide's Impact on Indoor Air Quality: https://www.epa.gov/indoor-air-quality-iaq/carbon-monoxides-impact-indoor-air-quality.
    \109\ U.S. Environmental Protection Agency. (Last updated Mar. 
4, 2025). What is Acid Rain?: https://www.epa.gov/acidrain/what-acid-rain.
    \110\ U.S. Environmental Protection Agency. (Last updated Mar. 
11, 2025). Ground-level Ozone Basics: https://www.epa.gov/ground-level-ozone-pollution/ground-level-ozone-basics.
---------------------------------------------------------------------------

    We also emphasize that expanding CAA section 202(a)(1) to encompass 
global climate change concerns required the EPA to take the admittedly 
``unique'' approach of finding endangerment and contribution where the 
overwhelming majority of relevant emissions hails from international 
sources. Although we justified this approach by concluding as a policy 
matter that all sources must ``do their part'' to avoid a collective 
action problem, Congress has specifically provided in the CAA when and 
how the EPA may consider international emissions. For example, CAA 
section 115 authorizes the EPA to require controls for domestic 
emissions that contribute to air pollution that endangers public health 
or welfare in another country only when, among other things, that 
country has adopted reciprocal protections for emissions into the 
United States.\111\ CAA section 179B authorizes the EPA to account for 
the impact of international emissions on NAAQS attainment under certain 
conditions.\112\ Most importantly, Congress adopted a new regulatory 
regime in 1990--Title VI--in response to global concerns about 
depletion of the ozone layer, which contains its own findings, 
policies, and regulatory authorities that required the EPA to phase out 
domestic use of ozone-depleting substances.\113\ None of these 
provisions encompass GHG emissions, and all support the conclusion that 
Congress does not presume that general authorities in the CAA encompass 
international emissions. Rather, Congress knows how to provide for the 
consideration of and regulation in response to international emissions, 
and has not done so for GHG emissions in the CAA section 202 provisions 
governing new motor vehicle and engine emissions.
---------------------------------------------------------------------------

    \111\ 42 U.S.C. 7415.
    \112\ 42 U.S.C. 7509a.
    \113\ 42 U.S.C. 7671 et seq.
---------------------------------------------------------------------------

    The definition of ``air pollutant'' in CAA section 302(g) and the 
ordinary meaning of the undefined terms pollutant, pollution, and air 
pollution support this reading. At the time Congress added these terms 
to CAA section 202(a)(1), the term ``pollutant'' was defined as 
``[a]nything that pollutes; especially, any gaseous, chemical, or 
organic waste that contaminates air, soil, or water,'' \114\ and 
``pollution'' was defined as ``[t]he contamination of soil, water or 
the atmosphere by the discharge of noxious substances.'' \115\ The 
definition of the root word ``pollute''--``[t]o dirty, contaminate,'' 
confirms the relationship of these terms to concepts of contamination 
and toxicity.\116\ The central concept is the addition of a 
contaminant, something that ``make[s] impure by contact or mixture.'' 
\117\ CAA section 302(g) defines ``air pollutant'' is any ``air 
pollution agent or combination of such agents'' that ``is emitted into 
or otherwise enters the ambient air.'' \118\ Read together with CAA 
section 202(a)--as the Supreme Court held we must in UARG--the 
underlying concept of dangerousness and contamination reinforces the 
conclusion that air pollution which endangers public health or welfare 
is air pollution (caused or contributed to by air pollutants) that 
itself endangers public health or welfare through local or regional 
exposures.
---------------------------------------------------------------------------

    \114\ Pollutant, Am. Heritage Dictionary 1015 (1970); see also 
Pollutant, 3 Webster's Third New Int'l Dictionary 1756 (1966) 
(``something that pollutes: a polluting substance, medium or 
agent'').
    \115\ Pollution, Am. Heritage Dictionary 1015 (1970); see also 
Pollution, 3 Webster's Third New Int'l Dictionary 1756 (1966) (``the 
action of polluting or the state of being polluted: defilement, 
desecration, impurity, uncleanness'').
    \116\ Pollute, Am. Heritage Dictionary 1015 (1970); see also 
Pollute, Black's Law Dictionary 1043 (5th ed 1979) (``To corrupt or 
defile. The contamination of soil, air and water by noxious 
substances and noises.''); Pollute, 3 Webster's Third New Int'l 
Dictionary 1756 (1966) (``to make physically impure or unclean: 
befoul, dirty, taint'').
    \117\ Contaminate, Am. Heritage Dictionary 156 (1970); see also 
Contaminate, 1 Webster's Third New Int'l Dictionary 491 (1966) (``to 
soil, stain, corrupt, or infect by contact or association'').
    \118\ 42 U.S.C. 7602(g).
---------------------------------------------------------------------------

    Contemporaneous usage of the term ``air pollution'' in the 1960s 
and 1970s further indicate the term was understood in this way when 
Congress adopted it into Title II of the CAA. Judicial decisions issued 
close in time to the public debates and enactment of the CAA Amendments 
of 1970 used the term exclusively in reference to local and regional 
exposure.\119\ News reports

[[Page 7714]]

and legislative debates leading up to the 1970 Amendments similarly 
attacked air pollution problems arising from local and regional 
exposure, including smog and health and welfare impacts related to 
inhalation and physical contact.\120\ This pattern of usage is 
consistent with subsequent legislative amendments to CAA section 202, 
which added provisions specific to criteria pollutants and air toxics 
fitting this profile, and with the EPA's course of mobile-source 
regulation until 2009. In reviewing the relevant history, including 
materials received during the public comment period, we have not 
identified an authoritative source suggesting that the ordinary meaning 
of ``air pollution'' would have included, without additional modifying 
language, gases that may endanger public health or welfare only on a 
global scale and through an attenuated and indirect causal chain.
---------------------------------------------------------------------------

    \119\ See, e.g., Washington v. GM Corp., 406 U.S. 109, 115-16 
(1972) (declining to exercise original jurisdiction over complaint 
alleging conspiracy to restrain the development of air pollution 
control devices for motor vehicles because, although ``Congress has 
largely preempted the field with regard to `emissions from new motor 
vehicles,' . . . geophysical characteristics which define local and 
regional airsheds are often significant considerations in 
determining the steps necessary to abate air pollution''); Friends 
of Earth v. FCC, 449 F.2d 1164, 1165-66 (D.C. Cir. 1971) (addressing 
challenge to the FCC's treatment of automobile advertisements that 
petitioners alleged took a position on motor vehicle air pollution 
worsening local conditions in New York City, including ``dangerous 
hydrocarbons in the air'').
    \120\ See, e.g., Coal. for Responsible Regulation, 2012 U.S. 
App. LEXIS 25997, at *32-37 (Brown, J., dissenting from denial of 
rh'g en banc) (summarizing relevant history).
---------------------------------------------------------------------------

    The ``air pollution'' addressed in the Endangerment Finding is 
different in kind. In that decision, the Administrator defined the 
relevant ``air pollutant'' as six ``well-mixed GHGs'' and the relevant 
``air pollution'' as total global concentrations of ``the combined mix 
of'' these GHGs ``which together, constitute the root cause of human-
induced climate change and the resulting impacts on public health and 
welfare.'' 74 FR 66516. In contrast to the air pollution addressed 
expressly in CAA section 202 and elsewhere in the statute, GHGs do not 
endanger public health or welfare through local or regional exposure. 
Rather, the Endangerment Finding asserted that GHG ``air pollution'' 
would lead to increases in global temperature and change to ocean pH 
that, in turn, would lead to environmental phenomena, in combination 
with an open-ended universe of additional factors, which would 
potentially have adverse health and welfare impacts of varying severity 
in certain regions. Indeed, the Administrator expressly admitted at the 
time that the circumstances were ``unique'' because ``[n]one of th[e] 
human health effects'' identified in the Endangerment Finding ``are 
associated with direct exposure to greenhouse gases.'' 74 FR 66527. 
With respect to welfare effects, the Administrator acknowledged that 
the primary effects of concern could be considered health or welfare 
impacts \121\ and that certain welfare impacts were ``effects on people 
that do not rise to the level of health effects'' but utilize the same 
causal chain. 74 FR 66527; see 74 FR 66531 (explaining that the 
Endangerment Finding considered the same causal ``pathways'' in 
analyzing ``public health'' and ``public welfare'').\122\ Regulating 
GHG emissions based on global climate change concerns requires reading 
an additional instance of ``cause, or contribute'' into the statute, 
such that CAA section 202(a) encompasses the `emission of air 
pollutants that cause, or contribute to, air pollution that causes, or 
contributes to, endangerment of public health or welfare.'
---------------------------------------------------------------------------

    \121\ For example, the EPA in the Endangerment Finding 
understood impacts on ``well-being'' as used in the CAA section 
302(h) definition of ``welfare'' to be relevant ``whether [the 
impacts] resul[t] directly or indirectly from the pollution in the 
air.'' 74 FR 66528.
    \122\ The Agency acknowledged that difficult questions about the 
distinction between health and welfare impacts was something the 
``EPA has not had to resolve'' in the past, ``as it has been clear 
whether the effects relate to public health or relate to public 
welfare, with no confusion over what category was at issue.'' 74 FR 
66527. Rather than take this analytical difficulty as a sign that 
the causal chain was different in kind from the type of ``air 
pollution'' addressed by CAA section 202(a)(1), however, we 
proceeded to finalize a novel invocation of authority to regulate in 
response to global climate change concerns.
---------------------------------------------------------------------------

    This interpretation is also supported by the best reading of the 
terms ``cause,'' ``contribute,'' and ``reasonably be anticipated to 
endanger.'' In enacting and amending CAA section 202(a)(1), Congress 
legislated against background legal principles, including principles of 
causation and proximate cause.\123\ These ``default rules'' are 
``presumed to have [been] incorporated, absent an indication to the 
contrary in the statute itself,'' \124\ and nothing in the text of CAA 
section 202(a)(1) indicates that Congress intended to depart from 
ordinary legal meaning. Indeed, Congress affirmatively incorporated 
proximate cause principles when it added the phrase ``may reasonably be 
anticipated'' to the statute in 1977 amendments to the CAA. That 
phrasing is another way of saying ``reasonably foreseeable,'' a 
longstanding touchstone of proximate cause.\125\ As a general matter, 
there is a point at which harm no longer has a sufficiently close 
connection to the relevant conduct to reasonably draw a causal link. 
Emissions from new motor vehicles and new motor vehicle engines in the 
United States do not have a sufficiently close connection to the 
adverse impacts identified in the Endangerment Finding to fit within 
the legal meaning of ``cause'' or ``contribute.'' This reading is 
complemented by the term ``reasonably'' in the phrase ``air pollution 
which may reasonably be anticipated to endanger public health or 
welfare.'' Like the terms ``cause'' and ``contribute,'' the term 
``reasonably'' places an outer legal limit on the authority to 
anticipate dangers to public health and welfare from air pollution. The 
greater the number of causal links involved in anticipating such 
endangerment, the more difficult it is to qualify that anticipation as 
``reasonable.''
---------------------------------------------------------------------------

    \123\ See, e.g., Bank of Am. Corp. v. City of Miami, 581 U.S. 
189, 201 (2017); Lexmark Int'l, Inc. v. Static Control Components, 
Inc., 572 U.S. 118, 132 (2014); Univ. of Tex. Sw. Med. Ctr. v. 
Nassar, 570 U.S. 338, 347 (2013); City of Oakland v. Wells Fargo & 
Co., 14 F.4th 1030 (9th Cir. 2021) (en banc).
    \124\ Nassar, 570 U.S. at 347.
    \125\ Foreseeable, 1 Webster's Third New Int'l Dictionary 890 
(1966) (``being such as may reasonably be anticipated''); see, e.g., 
Hicks v. United States, 511 F.2d 407, 421 (D.C. Cir. 1975) (finding 
``proximate cause'' satisfied because it was ``foreseeable'' that a 
hospital's release without warning of an alcoholic patient with a 
history of abusing his wife could result in harm to the patient's 
wife).
---------------------------------------------------------------------------

    Notably, contemporary understandings of terms used in the CAA 
section 302(h) definition of ``welfare'' also support the understanding 
that CAA section 202(a)(1) encompasses air pollution with adverse 
impacts from local or regional exposure. The statute provides that 
references to ``effects on welfare'' include ``effects on soils, water, 
crops, vegetation, manmade materials, animals, wildlife, weather, 
visibility, and climate,'' damage to property, transportation hazards, 
and effects on economic values and personal comfort and well-being. The 
ordinary meaning of ``climate,'' an undefined term, was ``[t]he 
prevailing weather in a particular region'' or ``[a] region manifesting 
particular meteorological conditions.'' \126\ Similarly, ``weather'' 
meant ``[t]he state of the atmosphere at a given time and place, 
described by temperature, moisture, wind velocity, and pressure.'' 
\127\ Both terms must also be read together in context, including by 
reference to the other terms enumerated in the list.\128\ Each of the 
other terms in

[[Page 7715]]

the definition refers to things and mechanisms of action that occur in 
a particular place or under regionally bounded conditions. The terms 
Congress used to define ``welfare'' speak to air pollution with adverse 
impacts from local and regional exposure, not global climate change 
concerns that require a very different and much longer causal chain. 
The definition is broad enough to encompass the various air pollutants 
and air pollution of concern, each of which interacts differently with 
the environment--smog, particulate matter, and the like. Congress 
understood that air pollution challenges varied from State-to-State and 
region to region, while, at the same time, recognizing that the most 
acute challenges--smog in highly populated urban areas, for example--
had similarities that would benefit from national standards.\129\ But 
none of the many terms listed in the definition of welfare would have 
been understood, absent modifying terms, to refer to global 
considerations. Nor has Congress added terms like ``global'' or 
``change'' that would have expanded the scope of the effects on welfare 
encompassed within the definition.\130\
---------------------------------------------------------------------------

    \126\ Climate, Am. Heritage Dictionary 136 (1970); see, e.g., 
Alameda Cons. Ass'n v. California, 437 F.2d 1087, 1096 (9th Cir. 
1971) (using ``climate'' to discuss local environmental conditions 
in San Francisco Bay); Levenson's Case, 194 N.E.2d 103, 105 (Mass. 
1963) (using ``climate'' to address whether moving to another state 
with a different climate is a covered medical expense).
    \127\ Weather, Am. Heritage Dictionary 785 (1970).
    \128\ See Fischer v. United States, 603 U.S. 480, 487 (2024) 
(``[T]he canon of noscitur a sociis teaches that a word is `given 
more precise content by the neighboring words with which it is 
associated.' That `avoid[s] ascribing to one word a meaning so broad 
that it is inconsistent with' `the company it keeps' '' (citations 
omitted)); Gustafson v. Alloyd Co., 513 U.S. 561, 575 (1995) 
(applying canon to interpret the broad term ``communication,'' as 
used in a statutory definition of ``prospectus,'' to mean only 
public-facing communications that offer securities).
    \129\ See, e.g., S. Rep. 91-1196, at 1-8, 24 (1970) (discussing 
need for and intent of Senate bill that would eventually form much 
of the 1970 CAA by reference to urban pollution problems and areas 
in proximity to stationary and mobile sources and recognizing that 
``protection of the public health and welfare requires definitive 
knowledge of the causal relationships between exposure to air 
pollution agents . . . under varying environmental conditions''); 
H.R. Rep. 91-1146, at 6 (1970) (similar for House bill that informed 
aspects of the 1970 CAA).
    \130\ As discussed further in this section of the preamble and 
the Response to Comments document, Congress has used such language 
to specify the relevance of global climate change concerns in more 
recent amendments to different programs. CAA section 
211(o)(2)(B)(ii), for example, provides that the EPA must consider 
the impact of the production and use of renewable fuels on ``climate 
change'' when setting renewable fuel volumes under the RFS program. 
42 U.S.C. 7545(o)(2)(B)(ii) (emphasis added); see id. 7545(o)(1) 
(defining various renewable fuels in part by reference to GHG 
emissions).
---------------------------------------------------------------------------

    The Endangerment Finding largely avoided addressing these 
interpretive problems by severing the question whether GHG emissions 
from new motor vehicle engines contribute to GHG concentrations in the 
atmosphere from the question whether GHG concentrations in the 
atmosphere endanger public health and welfare. As discussed in further 
detail below, there is no basis in the statute for severing the inquiry 
in that way. Nevertheless, even with respect to endangerment and 
contribution in isolation, global climate change concerns involve 
causal relationships that are too uncertain, conjectural, remote, and 
convoluted by intervening and confounding factors to fit within the 
terms ``cause,'' ``contribute,'' and ``reasonably be anticipated to 
endanger'' as used in CAA section 202(a)(1). This understanding follows 
from the position discussed above that CAA section 202(a)(1) and the 
statute more generally were designed to address air pollution with 
harmful impacts from local and regional exposure and that are amenable 
to analysis using ordinary causation standards. In specifying that 
emissions may ``cause, or contribute to'' air pollution, and that air 
pollution need only ``be reasonably anticipated to endanger public 
health or welfare,'' Congress signaled that regulation may be 
appropriate when harm is not yet occurring or is not certain to occur. 
But that language bearing on the degree of certainty required does not 
override ordinary background principles governing the limits of an 
attenuated causal chain.
    Ultimately, the Endangerment Finding did not reflect consideration 
of the interpretive principles or ordinary meaning of the relevant 
terms discussed above. With respect to ``air pollution,'' the 
Administrator in 2009 asserted an unlimited discretion to decide what 
the EPA may target through regulation by defining ``air pollution'' 
without reference to the best reading of the statutory term. 74 FR 
66516-17. Neither the factors used to select the six GHGs--that they 
are (a) ``directly-emitted,'' (b) ``long-lived,'' and (c) ``well-
mixed''--nor the reasons used to support this definition--that they (1) 
``share common properties,'' (2) are ``estimated to be the primary 
cause of human-induced climate change,'' (3) are ``the common focus of 
climate change science research and policy analyses,'' (4) have not 
been ``assessed on an individual gas approach,'' and (5) that the 
Agency had combined certain pollutants in the past--are rooted in the 
ordinary meaning of ``air pollution'' or any other statutory term in 
CAA section 202(a)(1). Id. Instead, the Administrator extended 
discussion in Massachusetts of the CAA section 302(g) definition of 
``air pollutant'' to the undefined term ``air pollution,'' reasoning 
that because the EPA could group multiple air pollutants into a 
``combination of such agents,'' there was no relevant statutory limit 
to the Agency's discretion to identify subjects for regulation. 74 FR 
66537. Nor did the Administrator in 2009 grapple with the ordinary 
meaning of the terms used in the CAA section 302(h) definition of 
welfare, including ``climate,'' consider the full range of evidence 
bearing on the ordinary meaning of ``reasonably be anticipated to 
endanger,'' or appropriately evaluate the full context and structure 
relevant to CAA section 202(a)(1). In short, we now conclude that the 
legal analysis conducted in the Endangerment Finding, as well the 
resulting interpretation, cannot be squared with the longstanding 
principles that now trump deference to agency statutory interpretation 
under Loper Bright.
    In finalizing a different interpretation, we note that a limiting 
construction is necessary to avoid absurd results and potential 
conflict with the nondelegation doctrine. Because Congress cannot 
delegate legislative powers to the Executive Branch, statutes granting 
an agency regulatory authority must provide an intelligible principle 
to guide its exercise.\131\ Our authority under CAA section 202(a)(1) 
to ``prescribe . . . standards'' for emissions by any class or classes 
of new motor vehicles and engines is limited by the requirement that 
the Administrator find such emissions cause or contribute to air 
pollution that may reasonably be anticipated to endanger public health 
and welfare. The best reading of the statute recognized in this final 
action circumscribes this authority to air pollution that itself 
endangers health or welfare through local or regional exposure. Under 
the interpretation adopted in the Endangerment Finding, however, our 
authority under CAA section 202(a)(1) would have no readily discernible 
limiting principle, particularly in combination with the authority 
asserted to sever the analysis of endangerment and causation or 
contribution. Any ``air pollutant'' emitted by new motor vehicles or 
engines at more than de minimis volumes would trigger our authority and 
obligation to prescribe standards so long as emissions from any and all 
sources globally contributes to ``air pollution'' that, in turn, can be 
said to have any causal relationship to adverse impacts on public 
health and welfare, broadly defined.\132\ Put another way, the

[[Page 7716]]

Administrator in 2009 asserted authority to define the relevant ``air 
pollution'' without reference to any statutory limiting principle, 
leaving the EPA free to redefine the objectives of the regulatory 
scheme.
---------------------------------------------------------------------------

    \131\ See, e.g., Gundy v. United States, 588 U.S. 128 (2019).
    \132\ The consequences of this interpretation are not limited to 
mobile sources. When issuing the Endangerment Finding, the EPA 
understood that stationary sources would be subject to a variety of 
PSD and Title V permitting obligations related to GHG emissions.
---------------------------------------------------------------------------

    That limitless construction of CAA section 202(a)(1) cannot be 
reconciled with the Supreme Court's instructions regarding the scope of 
agency authority in Loper Bright. Statutes have a single, best meaning 
that may include ``a degree of discretion.'' 603 U.S. at 369. But that 
discretion does not extend to redefining statutory terms in a manner 
inconsistent with ordinary meaning. Although ``Congress has often 
enacted'' statutes that ```expressly delegate[]' to an agency the 
authority to give meaning to a particular statutory term,'' Loper 
Bright, 603 U.S. at 394-95 (quoting Batterton v. Francis, 432 U.S. 416, 
425 (1977)), there is no such express delegation in CAA section 
202.\133\ Nor can extending CAA section 202(a)(1) to the regulation of 
GHGs in response to global climate change concerns plausibly be 
understood as ```fill[ing] up the details' of a statutory scheme.'' Id. 
(quoting Wayman v. Southard, 23 U.S. (10 Wheat.) 1, 43 (1825)). And 
``air pollution'' is not a discretion-conferring ``term or phrase that 
`leaves agencies with flexibility, such as `appropriate' or 
`reasonable.''' Id. (quoting Michigan, 576 U.S. at 752). Under these 
circumstances the ordinary meaning of ``air pollution'' controls. The 
EPA has a degree of discretion in identifying and regulating emissions 
that cause or contribute to air pollution that may reasonably be 
anticipated to endanger public health or welfare. But that discretion 
does not extend to redefining ``air pollution'' from the local and 
regional exposure problems understood at the time of enactment and 
addressed throughout the statute to global climate change 
concerns.\134\
---------------------------------------------------------------------------

    \133\ See, e.g., Batterton, 432 U.S. at 417 n.2 (interpreting 
statutory phrase ``by reason of the unemployment (as determined in 
accordance with standards prescribed by the Secretary)''); 42 U.S.C. 
7410(m) (authorizing the application of sanctions under certain 
conditions ``in relation to any plan or plan item (as that term is 
defined by the Administrator)'') (emphasis added), 7411(i) 
(excluding from certain stationary source regulations ``country 
elevators (as defined by the Administrator)'') (emphasis added); 33 
U.S.C. 1311(b)(1)(A) (requiring application of ``the best 
practicable control technology currently available as defined by the 
Administrator'') (emphasis added).
    \134\ In reaching this conclusion, we are mindful that the Sixth 
Circuit recently applied Loper Bright to hold that the FCC exceeded 
its statutory authority in a 2024 order that subjected broadband 
internet service providers to ``net-neutrality principles.'' Ohio 
Telecom Ass'n, 124 F.4th at 997. With respect to mobile broadband, 
the FCC had interpreted ``the public switched network'' to include 
not only the traditional telephone numbers comprising the network at 
the time the statute was enacted, but also public internet protocol 
(``IP'') addresses. Id. at 1011. The court rejected this approach, 
holding as a matter of statutory interpretation that ``delegation is 
not unfettered'' and that ``nothing in the statute . . . permits the 
FCC to effectively change the statute's original meaning of `the 
public switched network' . . . by adding `public IP addresses' to 
adapt to new technology.'' Id. at 1012 (citing Loper Bright, 603 
U.S. at 395).
---------------------------------------------------------------------------

    Indeed, the Endangerment Finding did not even limit the definitions 
selected for ``air pollutant'' or ``air pollution'' to gases emitted by 
new motor vehicles or engines. Rather, the Administrator defined the 
terms to include any ``climate forcer'' that met the identified 
criteria and expressly reserved the right to add to the six ``well-
mixed'' GHGs in future actions. 74 FR 66520-21. Nor were the identified 
criteria--that GHGs are long-lived, directly emitted, and well-mixed--
tied to any statutory language that requires the EPA to retain them or 
prevents the Agency from further expanding the category. Instead, the 
Administrator asserted ``broad discretion to determine appropriate 
combinations of compounds that should be treated as a single air 
pollutant.'' 74 FR 66537. In other words, under this interpretation of 
CAA section 202(a)(1), the only limit on our authority to regulate in 
response to global climate change is the exercise of reasonable 
discretion.\135\ The best reading of the statute, and the reading we 
restore in this final action, avoids this concern by giving the terms 
Congress selected their full and ordinary meaning.\136\
---------------------------------------------------------------------------

    \135\ See Whitman v. Am. Trucking Ass'ns, 531 U.S. 457, 474 
(2001) (``The idea that an agency can cure an unconstitutionally 
standardless delegation of power by declining to exercise some of 
that power seems to us internally contradictory. The very choice of 
which portion of the power to exercise--that is to say, the 
prescription of the standard that Congress had omitted--would itself 
be an exercise of the forbidden legislative authority.'').
    \136\ See Feliciano v. DOT, 605 U.S. 38, 55 n.6 (2025) 
(recognizing that ``considerations of constitutional avoidance might 
counsel in favor of a narrowing construction of certain laws''); 
Crowell v. Benson, 285 U.S. 22, 62 (1932) (summarizing 
constitutional avoidance principles); Hignell-Start v. City of New 
Orleans, 154 F.4th 353, 360 (5th Cir. 2025) (accepting city's 
interpretation of an ordinance that avoided constitutional 
problems).
---------------------------------------------------------------------------

    Under the logic of the Endangerment Finding, water vapor 
(H2O) emissions from vehicles and engines could meet the 
standard for regulation because the presence of additional water from 
all human activities around the world can be said to contribute to 
water-based disasters. See 74 FR 66520. The EPA would have the 
authority, and statutory duty, to prescribe standards for water vapor 
that would then trigger various permitting obligations--indeed, water 
is a recognized GHG, albeit one the EPA declined to regulate on a 
discretionary basis in 2009. Nor does this logic recognize any 
statutory limits to regulating pollutants under the global climate 
change concerns reading of CAA section 202(a)(1) that are addressed 
more specifically by other provisions of the statute, including black 
carbon (a form of the criteria pollutant PM), ground-level ozone 
(formed by the criteria pollutant NOx), and ozone-depleting 
substances (including those specifically addressed by Title VI and the 
Montreal Protocol). The Administrator declined to include these matters 
in the six ``well-mixed'' GHGs encompassed within the Endangerment 
Finding but remained open to future actions treating them as a climate 
issue. Because that reading effectively converts CAA section 202(a)(1) 
into a roaming license to ``prescribe . . . standards,'' the reading 
finalized in this action is more faithful to the governing principles 
of statutory interpretation.
    The EPA is also finalizing that the futility of GHG emission 
standards in addressing the adverse health and welfare impacts 
predicted in the Endangerment Finding support this interpretation of 
CAA section 202(a)(1). At proposal, we sought comment on whether the 
EPA must consider the potential impact of regulation when applying CAA 
section 202(a)(1) and, if so, how this interpretation should inform any 
final action. We received significant comments on the efficacy of the 
EPA's GHG emission standards to date, particularly with respect to 
their limited impact on projected trends in GMST and GSLR and the 
relevance of the impacts of regulation on the interpretation of CAA 
section 202(a)(1). As discussed further in section V.C of this 
preamble, we conclude that even the complete elimination of GHG 
emissions from all new and existing LD, MD, and HD vehicles would have 
a de minimis impact on these values as a proxy for adverse health and 
welfare impacts. When accounting for the emissions reduction potential 
of GHG emission standards and their application only to new vehicles 
and engines, the de minimis nature of these impacts becomes even 
clearer. The trivial impacts of eliminating GHG emissions on trends in 
GMST and GSLR--which are less than one percent of the projected changes 
through 2050 and 2100 once the nature of the GHG emission standards are 
taken into account--are squarely in line with regulatory and judicial 
precedents treating values of approximately one percent or more as de 
minimis.
    Courts have long recognized the ``background'' legal principle 
``against

[[Page 7717]]

which all enactments are adopted'' that general language does not 
encompass de minimis concerns. Wis. Dep't of Rev. v. William Wrigley 
Jr., Co., 505 U.S. 214, 231 (1992); see UARG, 573 U.S. at 309 n.1. 
Unless the statute provides otherwise, agencies have implied authority 
to exempt de minimis concerns ``when the burdens of regulation yield a 
gain of trivial or no value.'' Ala. Power Co. v. Costle, 636 F.2d 323, 
360-61 (D.C. Cir. 1979). This conclusion informs our interpretation of 
CAA section 202(a)(1) by suggesting that the provision does not 
encompass the attenuated chain of causation required to invoke the 
authority to regulate GHG emissions where regulations cannot have more 
than a trivial impact on the identified dangers to health and welfare. 
Nothing in the statutory language suggests that Congress intended to 
overcome this background principle, and the both the Supreme Court and 
the D.C. Circuit have recognized its applicability in comparable 
environmental contexts.\137\ Put another way, the inability of new 
motor vehicle and engine GHG emission standards to have any material 
impact on the global climate change concerns relied upon by the Agency 
in the 2009 Endangerment Finding suggests that it is unreasonable to 
conclude that GHG emissions from new motor vehicles and engines cause 
or contribute to air pollution which may reasonably be anticipated to 
endanger public health or welfare. For further discussion, see section 
V.C of this preamble and the Response to Comments document.
---------------------------------------------------------------------------

    \137\ See UARG, 573 U.S. at 309 n.1; Ala. Power, 636 F.2d at 
360-61; see also EPA v. EME Homer City Generation, L.P., 572 U.S. 
489 (2014) (approving of approach that did not require additional 
emissions reductions from States that contributed trivially to 
nonattainment in other States); Ohio v. EPA, 997 F.2d 1520, 1534-35 
(D.C. Cir. 1993) (accepting de minimis approach to CERCLA five-year 
risk reviews because the statute did not clearly prohibit the 
approach and anything less would be contrary to legislative design).
---------------------------------------------------------------------------

    Finalizing this interpretation effectively returns the EPA to its 
longstanding practice prior to 2009 of applying CAA section 202(a)(1) 
and related statutory endangerment provisions to air pollution that 
adversely impacts public health and welfare through local or regional 
exposure. As discussed further in sections III.A and V.B of this 
preamble, we historically utilized this authority on a relatively 
infrequent basis to prescribe standards for pollutants identified in 
the CAA itself, including NOX, PM, HCs and other VOCs, and 
CO, and then only as a backstop when more specific CAA section 202 
authorities were unavailable. The distinction between air pollution 
that harms public health and welfare through local and regional 
exposure and global ``air pollution'' consisting of GHG concentrations 
without any such direct impacts also played a role in our evaluation of 
waiver requests under CAA section 209.\138\ Even in the Endangerment 
Finding, the Administrator recognized that ``[n]one'' of the identified 
health impacts were ``associated with direct exposure'' and that we had 
previously applied CAA section 202(a)(1) to the ``more typical local or 
regional air pollution problem.'' 74 FR 66527, 66538 (emphases added); 
see 74 FR 66531 (explaining that the Agency considered the same causal 
``pathways'' in assessing public health and welfare impacts). In 
adopting a novel analytical approach in the Endangerment Finding, we 
failed to adequately address this prior practice and improperly relied 
on the Supreme Court's decision in Massachusetts for the proposition 
that CAA section 202(a)(1) authorizes emission standards in response to 
air pollution raising global climate change concerns. As discussed 
below, Massachusetts did not separately construe the scope of the EPA's 
authority to regulate under CAA section 202(a)(1), and the Court has 
since made clear in UARG and West Virginia that our authority to 
regulate an ``air pollutant'' encompassed within the Act-wide 
definition must be evaluated in the context of the particular statutory 
provision that confers authority to regulate.
---------------------------------------------------------------------------

    \138\ See, e.g., ``California State Motor Vehicle Pollution 
Control Standards; Notice of Decision Denying a Waiver of Clean Air 
Act Preemption for California's 2009 and Subsequent Model Year 
Greenhouse Gas Emission Standards for New Motor Vehicles,'' 73 FR 
12156, 12161 (Mar. 6, 2008) (denying California's waiver request for 
GHG emission standards on the ground that ``the different, and 
global, nature of the pollution at issue'' requires a different 
conceptual approach); see also ``The Safer Affordable Fuel-Efficient 
(SAFE) Vehicles Rule Part One: One National Program,'' 84 FR 51310, 
51328-52 (Sept. 27, 2019) (summarizing and applying this 
interpretation).
---------------------------------------------------------------------------

    In Massachusetts, the Supreme Court rejected the argument that GHGs 
are not ``air pollutants'' under the Act-wide definition, reasoning 
that CAA section 302(g)'s use of the word ``any'' in connection with 
``air pollutant agent or combination of such agents, including any 
physical [or] chemical . . . substance'' was sufficiently broad to 
encapsulate the combination of GHGs at issue. 549 U.S. at 530. On this 
basis, the Court stated that the EPA ``has the statutory authority to 
regulate the emission of such gases from new motor vehicles.'' Id. at 
532. The Court did not, however, separately decide whether including 
GHGs within the definition of ``air pollutant'' meant that we must find 
that GHGs meet the statutory standard for regulation under CAA section 
202(a) because they cause or contribute to air pollution which 
endangers the public health or welfare. Rather, the Court emphasized 
that its review of the denial of the rulemaking petition was 
``extremely limited'' and concluded its opinion by clarifying that it 
``need not and do[es] not reach the question whether on remand EPA must 
make an endangerment finding.'' Id. at 527, 534.
    Consistent with Massachusetts, and reading that decision in harmony 
with UARG, we interpret the CAA as setting out a broad, threshold 
definition of ``air pollutant'' on an Act-wide basis that must be 
interpreted in the context of each applicable, particular provision 
granting regulatory authority in order to determine whether that 
provision authorizes the EPA to regulate an air pollutant under that 
particular authority. For purposes of CAA section 202(a)(1), that means 
that even if GHGs are ``air pollutant[s]'' as defined on an Act-wide 
basis, they must meet the statutory standard for regulating emissions 
from new motor vehicles and engines before we may invoke our regulatory 
authority. Put simply, regardless whether GHGs are ``air pollutants'' 
as defined in CAA section 302(g), they must satisfy the same standard 
as any other emitted ``air pollutant'' by causing or contributing to 
``air pollution which may reasonably be anticipated to endanger public 
health or welfare.''
    This understanding is necessary to account for UARG, in which the 
Supreme Court distinguished between ``the Act-wide definition'' of air 
pollutant and the application of that definition to the Act's 
regulatory provisions. 573 U.S. at 320. The Court specifically 
addressed the holding in Massachusetts, adopting the argument that 
``while Massachusetts rejected EPA's categorical contention that [GHGs] 
could not be air pollutants for any purposes of the Act, it did not 
embrace EPA's [then] current, equally categorical position that [GHGs] 
must be air pollutants for all purposes regardless of the statutory 
context.'' Id. (cleaned up).
    In sum, CAA section 202(a)(1) does not provide authority to 
regulate GHGs based on global climate change concerns because that 
provision authorizes regulating only emissions that ``cause, or 
contribute to, air pollution which may reasonably be anticipated to 
endanger public health or welfare.'' The EPA must ``ground its reasons 
for action or inaction in the statute,'' Massachusetts, 549 U.S. at 
535, and

[[Page 7718]]

``possess[es] only the authority that Congress has provided,'' NFIB v. 
DOL, 595 U.S. 109, 117 (2022). In finalizing this interpretation, we 
note that our actions must be consistent with ``the single, best 
meaning'' of the statute, `` `fixed at the time of enactment''' and 
resolved through application of ``all relevant interpretive tools,'' 
and cannot expand our authority in response to pressing concerns based 
on statutory silence or ambiguity. Loper Bright, 603 U.S. at 400, 411 
(quoting Wis. Cent., 585 U.S. at 284). Properly interpreted, the 
statute confers ``regulatory flexibility'' to respond to ``changing 
circumstances and scientific developments,'' Massachusetts, 549 U.S. at 
532, while bounding the scope of the EPA's authority to ``air 
pollution'' as that term was understood at the time of enactment.
    Findings and Standards. The EPA is also finalizing as proposed that 
CAA section 202(a)(1) requires issuing emission standards together with 
the findings necessary to invoke our regulatory authority, rather than 
severing the regulatory action into separate endangerment and 
standards-setting proceedings. The statute begins by providing that the 
Administrator ``shall prescribe . . . standards applicable to the 
emission of any air pollutant from any class or classes of new motor 
vehicles or new motor vehicle engines,'' and follows this requirement 
by describing the scope of the duty to regulate air pollutant emissions 
``which, in his judgment cause, or contribute to, air pollution which 
may reasonably be anticipated to endanger public health or welfare.'' 
The best reading of the statute requires the Administrator, when 
prescribing any emission standard for new motor vehicles or engines, to 
find that the air pollutant or air pollutants emitted by the class or 
classes of new motor vehicles or engines subject to the standard cause 
or contribute to air pollution that may reasonably be anticipated to 
endanger public health or welfare.
    The Endangerment Finding severed this statutory language by finding 
endangerment and contribution in the abstract for all potential CAA 
section 202 sources with respect to GHGs. In so doing, the 
Administrator vastly increased the Agency's authority by removing the 
restrictions Congress placed on the issuance of emission standards. As 
a result of this new conception of authority, the EPA may issue a 
single endangerment finding in the abstract with respect to emissions 
from all sources potentially subject to CAA section 202 (and their 
existing-source counterparts) without addressing the danger posed by 
any particular source category or the causal role of that particular 
source category in any identified danger. The EPA relied on the 
Endangerment Finding to prescribe emission standards for various 
classes of new motor vehicles and engines, as well as a variety of 
other sources under distinct statutory authorities, without making the 
requisite findings or assessment of factors necessary to regulate the 
sources in question.\139\ Congress enacted CAA section 202(a)(1) as an 
integrated regulatory provision for a reason, and giving effect to the 
language of the statute requires the issuance of emission standards 
only when the Administrator has made an integrated finding of both 
endangerment and cause or contribution. Put another way, it is 
impermissible for the Administrator to make findings that trigger a 
duty to regulate without prescribing the emission standards required in 
response to such a finding, just as the Administrator may not prescribe 
emission standards without making the findings required by the statute.
---------------------------------------------------------------------------

    \139\ See sections III.D and VII of this preamble for a summary 
of the EPA's rulemaking activities in response to the Endangerment 
Finding.
---------------------------------------------------------------------------

    This interpretation is consistent with the EPA's implementation of 
CAA section 202(a)(1) and similar provisions of the CAA prior to 2009. 
In the Endangerment Finding, the Administrator acknowledged that 
``typically endangerment and cause or contribute findings have been 
proposed concurrently with proposed standards under various sections of 
the CAA, including CAA section 201(a).'' 74 FR 66501. That has also 
been our approach to other similarly worded provisions in the statute, 
including in response to petitions seeking findings and action under 
CAA section 115.\140\ We believe that our historical practice under CAA 
section 202(a)(1) reflects the better reading of the statute and is 
entitled to greater weight. As the Supreme Court explained in Loper 
Bright, such weight is ``especially warranted when an Executive Branch 
interpretation was issued roughly contemporaneously with enactment of 
the statute and remained consistent over time.'' 603 U.S. at 386.
---------------------------------------------------------------------------

    \140\ 42 U.S.C. 7415(a); see Her Majesty the Queen v. EPA, 912 
F.2d 1525, 1533-34 (D.C. Cir. 1990) (deferring to the EPA's 
interpretation of CAA section 115(a) as requiring an integrated 
action because the statute's text and structure ``creates a specific 
linkage between the endangerment finding and the remedial 
procedures'').
---------------------------------------------------------------------------

    In departing from the EPA's historical practice in the Endangerment 
Finding, the Administrator reasoned that ``[t]he text of CAA section 
202(a) is silent on this issue'' and ``invoked the procedural 
discretion that is provided by CAA section 202(a)'s lack of specific 
direction.'' 74 FR 66501. We no longer maintain that CAA section 
202(a)(1) is silent on the issue, as the statute sets out an integrated 
process that requires the EPA to prescribe standards when the 
Administrator finds certain conditions are met. When Congress intends a 
multi-step inquiry in the environmental context, it typically says so 
expressly. In the NAAQS program, for example, the CAA separates our 
authority to establish air quality criteria under CAA section 108 from 
our obligation to promulgate and revise NAAQS based on the criteria 
under CAA section 109, in addition to separating both of these 
regulatory steps from our duties to implement the NAAQS by reviewing 
State Implementation Plans (SIPs) or promulgating Federal 
Implementation Plans (FIPs) under CAA section 110 and related statutory 
provisions.\141\ A particularly relevant analogy is Clean Water Act 
section 303(c)(4), which pairs the Administrator's authority to 
``determin[e] that a revised or new [water quality standard] is 
necessary to meet the requirements of this chapter'' with the 
requirement that the Administrator ``shall promptly prepare and publish 
proposed regulations'' after making such a determination and 
``promulgate any revised or new standard . . . not later than ninety 
days after he publishes such proposed standards.'' \142\ Even if CAA 
section 202(a)(1) were ambiguous or silent in this respect, agencies 
may no longer assert delegated discretionary authority when the statute 
is amenable to a single, best reading under ordinary tools of statutory 
interpretation. As the Supreme Court held in Loper Bright, ``statutory 
ambiguity . . . is not a reliable indicator of actual delegation of 
discretionary authority to agencies.'' 603 U.S. at 411.
---------------------------------------------------------------------------

    \141\ See 42 U.S.C. 7408, 7409, 7410.
    \142\ 33 U.S.C. 1313(c)(4), (c)(4)(B). Various provisions of the 
SDWA and the Toxic Substances Control Act (TSCA) similarly 
articulate multi-step processes for determining risk and addressing 
risk through regulation using language that Congress did not include 
in CAA section 202. See, e.g., NRDC, 67 F.4th at 398-402 (discussing 
the two-step process for promulgating national primary drinking 
water regulations under SDWA section 1412).
---------------------------------------------------------------------------

    Severing the EPA's standards-setting authority from the findings 
that trigger a duty to exercise that authority shaped the analysis in 
the Endangerment Finding in a manner that ran counter to the statute. 
The Endangerment Finding first projected adverse public health and 
welfare impacts of global climate change and attributed those adverse 
impacts to

[[Page 7719]]

all manmade sources of GHG emission around the world and then, 
separately, used data from existing CAA section 202(a) sources in the 
United States to find that new motor vehicles and engines in the United 
States contributed to global GHG air pollution. The Administrator 
treated adaptation (adjustments to the effect of climate change that 
lessen impacts) and mitigation (reductions in emissions and global GHG 
concentrations unrelated to CAA section 202(a)(1) regulation) as 
outside the scope. 74 FR 66512. Moreover, the Administrator declined to 
consider cost, asserting that the Endangerment Finding imposed no 
regulatory requirements as a standalone action and relying on the 
Supreme Court's decision in Whitman v. American Trucking Associations, 
531 U.S. 457 (2001), that the EPA cannot consider cost in setting the 
NAAQS under CAA section 109(b)(1). 74 FR 66515. Nor did the 
Administrator consider potential beneficial impacts from climate change 
with respect to whether and which standards would be appropriate. See 
74 FR 66524 (purporting to compare ``risks and benefits'' only with 
respect to endangerment).
    Severance also shaped all subsequent standards prescribed and 
revised in reliance on the Endangerment Finding in a manner we now 
conclude was unlawful. The EPA asserted in subsequent rulemakings that 
there was no need to make particularized findings for the relevant 
source category because the Endangerment Finding identified public 
health and welfare dangers and contribution for all CAA section 202 
source categories. Nor did we consider the impacts of adaptation or 
mitigation when prescribing standards--considerations that the 
Endangerment Finding also treated as out of scope. As a result, the 
decision to sever meant that the EPA has never meaningfully considered 
or invited public comments on the cost, effectiveness, and continued 
propriety of its GHG regulatory program.
    These considerations should have been taken into account when the 
EPA triggered a duty to regulate in the Endangerment Finding by 
invoking our CAA section 202(a)(1) authority. CAA section 202(a)(2) 
expressly provides that ``[a]ny regulation prescribed under paragraph 
(1) of this subsection . . . shall'' provide adequate time for ``the 
development and application of the requisite technology, giving 
appropriate consideration to the cost of compliance within such 
period.'' \143\ CAA section 202(a)(1) authorizes the Administrator to 
``by regulation prescribe'' standards ``in accordance with the 
provisions of this section'' and does not separately authorize 
standalone findings, meaning any action taken ``under paragraph (1) of 
this subsection'' is subject to the considerations in paragraph (2). In 
addition, the Supreme Court explained in Michigan that ``agency action 
is lawful only if it rests `on a consideration of the relevant 
factors,' '' 576 U.S. at 750 (quoting State Farm, 463 U.S. at 43), 
including ``at least some attention to cost,'' id. at 752.
---------------------------------------------------------------------------

    \143\ 42 U.S.C. 7521(a)(2).
---------------------------------------------------------------------------

    Accordingly, we now conclude that the Administrator erred in 
analogizing the NAAQS program and the Supreme Court's decision in 
Whitman to avoid considering costs in the Endangerment Finding. Unlike 
CAA section 202(a)(1), the language in CAA section 109(b)(1) makes no 
reference to cost or implementation and focuses solely on the 
protection of public health. Nor does CAA section 109(b) include the 
lead time and technical feasibility concepts embedded in CAA section 
202(a). And whereas CAA section 202(a)(1) sets out an integrated 
authority to prescribe emission standards when the provision's 
triggering condition is satisfied, CAA section 109(b)(1) uses mandatory 
language requiring the EPA to establish certain standards, the content 
and implementation of which are specified in various provisions 
throughout Title I of the Act. We further note that the Supreme Court's 
decision in Massachusetts did not address the question whether the EPA 
could issue standalone findings or bar the Administrator from taking 
cost and implementation concerns into account when exercising CAA 
section 202(a) authority. Rather, Massachusetts must be read together 
with Michigan, and the language of CAA section 202(a)(1) must be read 
in context to ``produc[e] a substantive effect that is compatible with 
the rest of the law.'' UARG, 573 U.S. at 321 (quoting United Sav. Ass'n 
of Tex. v. Timbers of Inwood Forest Assocs., 484 U.S. 365, 371 (1988)).
    Endangerment and Cause or Contribute. The EPA is also finalizing as 
proposed that CAA section 202(a)(1) requires the Agency to evaluate 
whether source emissions cause or contribute to air pollution and 
whether that air pollution poses endangerment in a single causal chain, 
rather than considering these issues in isolation by severing the 
inquiries. The relevant inquiry is whether ``the emission of any air 
pollutant from any class or classes of new motor vehicles or new motor 
vehicle engines,'' in the judgment of the Administrator, ``cause, or 
contribute to, air pollution which may reasonably be anticipated to 
endanger public health or welfare.'' As explained in this section, the 
emission must cause or contribute to the danger posed by the air 
pollution to a sufficient extent to satisfy the standard for 
regulation.
    In the Endangerment Finding, the Administrator made two distinct 
findings based on two distinct sets of assumptions. In the first, the 
Administrator found that the ``air pollution,'' defined as the combined 
global concentrations in the upper atmosphere of six ``well-mixed 
GHGs,'' CO2, methane, N2O, HFCs, PFCs, and 
SF6, endangered public health or welfare by playing a causal 
role in global temperature increases, sea level rise, and other 
phenomena (including ocean pH changes), which, in turn, were then 
asserted to play a causal role in environmental phenomena with adverse 
impacts on public health and welfare. 74 FR 66516. In the second, the 
Administrator found that the quantity of the ``air pollutant'' (defined 
as the combination of same six ``well-mixed GHGs'') emitted by new 
motor vehicles and engines annually contributed to the ``air 
pollution.'' 74 FR 66536. The Administrator did not consider the extent 
to which emissions from CAA section 202(a)(1) sources have a more than 
de minimis effect on the danger identified with respect to elevated 
concentrations of GHGs in the upper atmosphere--let alone whether 
emissions from any particular class or classes of sources that the EPA 
intended to regulate had such an effect. Nor did the Administrator 
recognize the mismatch between ``air pollution'' consisting of global 
concentrations formed by GHG emissions past, present, and future and 
``air pollutant'' emissions from new motor vehicles and engines on an 
annual basis, or the problems associated with measuring domestic 
contribution against an air pollution problem that necessarily requires 
global emissions to result in the identified danger.
    Upon review, we no longer believe that the approach taken in the 
Endangerment Finding was consistent with the language of CAA section 
202(a)(1) and the structure of the CAA, which requires making distinct 
findings for regulating distinct types of emission sources and 
authorizing different regulatory tools when such standards are met. For 
example, CAA section 111(b)(1)(A) authorizes the EPA to regulate 
emissions from listed categories of stationary sources if the 
Administrator determines those sources emit air pollutants that 
``significantly contribute'' to air pollution that

[[Page 7720]]

endangers public health or welfare.\144\ When that standard is met, CAA 
section 111(b)(1)(B) requires the EPA to regulate such emissions from 
such sources by setting standards of performance that, among other 
things, reflect the best system of emission reduction that has been 
adequately demonstrated in practice.\145\ The CAA similarly sets out 
distinct standards for regulating and distinct modes of regulation for 
additional major source categories, including vehicles in use, aircraft 
engines, and separately addresses when and how to respond to 
international emissions that impact the United States. The Endangerment 
Finding effectively attributed the total GHG emissions coming from all 
of these various distinct sources within the United States, as well as 
from all international sources, to the mobile sources regulated under 
CAA section 202 without having made the requisite determinations for 
any of those sources and without considering the different regulatory 
tools Congress authorized for those sources as compared to CAA section 
202(a) sources. Although the statute anticipates that ``air pollution'' 
may reflect contributions from multiple source categories, application 
of the global climate change concerns reading of CAA section 202(a)(1) 
leads to impermissible gaps between the contribution and endangerment 
analyses that the Endangerment Finding failed to address.
---------------------------------------------------------------------------

    \144\ 42 U.S.C. 7411(b)(1)(A).
    \145\ 42 U.S.C. 7411(a)(1), (b)(1)(B). CAA section 111 also 
differentiates between new and existing stationary sources in a 
listed source category and limits the EPA's role with respect to 
existing sources by authorizing only emission guidelines implemented 
by the States. See id. 7411(d).
---------------------------------------------------------------------------

    Whereas the identified ``air pollution'' leads to endangerment 
because of the sum total of all emissions, past, current, and 
projected, from all source categories foreign and domestic, the 
identified contribution of ``air pollutant emissions'' from new motor 
vehicles and engines was measured in annual terms. In other words, the 
Endangerment Finding compared the wrong figures in tying contribution 
to endangerment. The Administrator found contribution based on the 
conclusion that existing vehicles and engines constituted 4.3 percent 
of annual global GHG emissions. But the Administrator found 
endangerment based on the theory that ``air pollution'' consisting of 
total global concentrations of the six ``well-mixed'' GHGs endangered 
public health and welfare. This mismatch is not presented when 
analyzing the air pollution addressed expressly by the CAA because the 
mechanism of harm does not depend on centuries-long time horizons. 
Annual emissions of airborne lead, for example, are readily measurable 
against the total annual concentrations of airborne lead in areas of 
concern, and the health and welfare impacts of air pollution in the 
form of airborne lead can be analyzed on the same scale. By completely 
severing the contribution and endangerment analyses for the six ``well-
mixed'' GHGs, the Endangerment Finding avoided grappling with this 
disconnect. The difficulties in analyzing the nexus between 
contribution and endangerment was not a problem to be avoided, but a 
further reason to conclude that CAA section 202(a)(1) was not designed 
to address global climate change concerns.
    The Administrator also defined the relevant ``air pollution'' as 
the combined global concentration of six ``well-mixed GHGs'' but found 
that CAA section 202(a) sources emitted only four of them: 
CO2, methane, NOX, and HFCs. 74 FR 66538. As a 
result, the ``air pollution'' identified as endangering public health 
or welfare included PFCs and SF6, and the ``air pollution'' 
used to conclude that CAA section 202(a) sources satisfy the regulatory 
standard did not. Contrary to the EPA's conclusion at the time, 74 FR 
66541, that difference is material, as PFCs and SF6 are 
asserted to have many times the global warming potential of 
CO2.\146\ Severing the endangerment and cause-or-contribute 
analysis allowed the Agency to compare apples and oranges in a manner 
inconsistent with the best reading of the statute.
---------------------------------------------------------------------------

    \146\ U.S. Environmental Protection Agency. (Last updated Jan. 
16, 2025). Understanding Global Warming Potentials: https://www.epa.gov/ghgemissions/understanding-global-warming-potentials.
---------------------------------------------------------------------------

    The Endangerment Finding also did not limit the analysis of 
contribution to ``new motor vehicles or new motor vehicle engines'' in 
the United States, which are the only sources covered by the EPA's CAA 
section 202(a) authority.\147\ Because the Administrator considered all 
sources in analyzing the danger posed by elevated concentrations of 
GHGs in the upper atmosphere, the endangerment analysis necessarily 
included emissions from foreign and domestic vehicles that had been in 
use for years or decades and were not ``new.'' Even when analyzing 
contribution, the Administrator used emission estimates from ``the 
entire fleet of motor vehicles in the United States for a certain 
calendar year'' rather than projecting emissions from new motor 
vehicles and engines over time. 74 FR 66543. That decision increased 
the absolute contribution figure by orders of magnitude, including 
because newer vehicles and engines tend to be more efficient and emit 
less.\148\ Difficulties in disaggregating emission data from emission 
sources, however reasonable, do not license us to read the term ``new'' 
out of the statutory text.
---------------------------------------------------------------------------

    \147\ 42 U.S.C. 7521(a)(1) (emphases added); see, e.g., City of 
New York v. Chevron Corp., 993 F.3d 81, 101 (2d Cir. 2021) 
(``Together, the statute's silence on the issue of extraterritorial 
reach, the fact that the Act contemplates the need for reciprocal 
protections from foreign nations, and the State Department's lead 
role in setting foreign policy on environmental matters, all plainly 
demonstrate that the Clean Air Act regulates only domestic 
emissions.'').
    \148\ For additional discussion of improvements in new motor 
vehicles and engines relative to older vehicles and engines, see 
section VI.D of the preamble to the proposed rule.
---------------------------------------------------------------------------

    We further conclude that severing the endangerment and cause or 
contribution findings leads to untenable results and lacks any limiting 
principle. To illustrate the problem, the same logic would allow the 
EPA to issue emission standards for water vapor (H2O), 
another substance emitted by new motor vehicles and engines that is 
also considered a GHG. Considered in isolation, increased 
H2O concentrations in the atmosphere from all human 
activities can be said to endanger public health or welfare by 
resulting in rain that leads to slip-and-fall injuries, drownings, and 
damage to crops, livestock, and property, including through pools, 
rivers, and floodwater, although water vapor is not itself harmful and 
is necessary to sustain life. Also considered in isolation, CAA section 
202 sources can be said to ``contribute'' to elevated H2O 
concentrations in the atmosphere from all anthropogenic sources, and 
these emissions of water vapor would thereby assertedly ``contribute'' 
to global climate effects similar to those attributed to other GHGs. 
CAA section 202(a)(1) does not contemplate prescribing emission 
standards for such an omnipresent, naturally occurring, and essential 
component of the ambient air because the text requires a unified 
analysis that ensures a nexus between the extent of contribution and 
the resulting danger. The logic of regulating water vapor appears 
absurd, but it is the same logic required to regulate GHGs under CAA 
section 202(a)(1). And the Administrator acknowledged in the 
Endangerment Finding that the statutory interpretation adopted in that 
action could support adding water vapor to the defined regulatory for 
``climate forcing'' GHGs.
    The decision to sever the analysis of endangerment from the 
analysis of contribution, combined with the decision to sever the 
Administrator's

[[Page 7721]]

findings from any standards prescribed as a result, produced an 
analysis that is incompatible with the statute. In the Endangerment 
Finding, the Administrator concluded that anything more than a trivial 
or de minimis contribution to elevated global GHG concentrations by CAA 
section 202(a) sources was sufficient to trigger regulation because the 
``unique, global aspects of the climate change problem tend to support 
contribution at lower percentage levels of emissions than might 
otherwise be considered appropriate when addressing a more typical 
local or regional air pollution problem.'' 74 FR 66538. Because the 
Endangerment Finding did not consider the standards that the statute 
requires when the Administrator makes such a finding, we did not 
consider whether emission standards for new motor vehicles would be 
futile as a means to address the identified dangers of GHG emissions 
from all anthropogenic sources. As discussed in section V.C of this 
preamble, available modeling indicates that reducing GHG emissions from 
all vehicles and engines in the United States to zero would not have a 
measurable, material impact on trends in global temperature or sea 
level. Because our GHG emission standards apply only to new vehicles 
and engines and have not, to date, mandated the elimination of all 
emissions, their impact is only a fraction of the already de minimis 
impacts identified in the modelled scenario. It was foreseeable at the 
time that issuing the Endangerment Finding would trigger a duty to 
regulate and that stringent measures would be necessary under all of 
the EPA's separate statutory authorities, and not just CAA section 
202(a), to have any potentially material impact on the identified harm. 
Refusing to consider these foreseeable consequences was inconsistent 
with the statutory scheme and, as explained further below, an 
unreasonable exercise of the authority we asserted.
    Finally, the Administrator did not adequately consider the meaning 
in context of the statutory term ``endanger'' and failed to identify 
with sufficient rigor the purported danger linked to GHG emissions from 
new motor vehicles and engines. As used in CAA section 202(a)(1), 
``endanger'' is not best read as meaning any predicted negative impact 
to any public health or welfare value, as that interpretation would 
render the constraint placed on the EPA's authority to prescribe 
standards essentially meaningless, thereby violating ordinary 
principles of statutory interpretation and raising constitutional 
nondelegation concerns. Severing the endangerment and contribution 
inquiries improperly allowed the Administrator to avoid this concern by 
concluding that new motor vehicle and engine emissions included more 
than de minimis GHG emissions, even if those emissions did not 
themselves contribute to a danger in any meaningful sense. See 74 FR 
66543 (asserting that ``contributors must do their part even if their 
contributions to the global problem, measured in terms of percentage, 
are smaller than typically encountered'').
2. Summary of Comments and Updates Since Proposal
    The EPA received comments from a variety of stakeholders supporting 
and criticizing the legal rationale set out in the proposed rule. 
Commenters supporting the rescission and repeals pointed to the Supreme 
Court's decisions in West Virginia, UARG, and Loper Bright as strongly 
supportive of what we proposed to be the best reading of CAA section 
202(a)(1) and generally agreed that the Endangerment Finding erred in 
severing the statutory analysis in various ways. Commenters opposing 
the rescission and repeals generally argued that the Supreme Court's 
decision in Massachusetts and several subsequent precedents must be 
read as requiring the EPA to regulate GHG emissions and that the 
statute must be interpreted broadly to accomplish what they described 
as the preventative purposes of the statute. The final rationale set 
out in the preceding section of this preamble reflects this input by 
including certain interpretive evidence identified by commenters and 
additional analysis developed in response to arguments raised during 
the public comment period. In this subsection, we summarize major 
themes presented in the comments received along with our high-level 
responses. For detailed comment summaries and our full responses 
thereto, please see the Response to Comments document in the docket for 
this rulemaking.
    Comment: Commenters supportive of the proposal generally agreed 
that the EPA exceeded its statutory authority under CAA section 
202(a)(1) by issuing the Endangerment Finding and resulting standards. 
Some of these commenters emphasized agreement with our proposed 
interpretation of the term ``air pollution'' and the role that term 
plays in the provision, while others further agreed with our proposed 
understanding of the nature of the statutory analysis and the ways in 
which the Endangerment Finding erred in severing the analysis.
    With respect to ``air pollution,'' commenters offered additional 
legislative history, regulatory history, or other support for 
interpreting the term as referring to pollution that adversely impacts 
health or welfare through local or regional exposure, such as smog. 
Several commenters recounted the air pollution concerns leading up to 
the 1965, 1970, and 1977 enactments in particular and emphasized that 
Congress and the public understood the problem in terms of increased 
urbanization, including in cities that crossed over State lines and 
made pollution control strategies by individual States and localities 
difficult with respect to mobile sources. These commenters provided 
further evidence in contemporary legislative history and other public 
materials that Congress understood the national air pollution problem 
being addressed in legislation as one related to criteria pollutants 
that lead to smog, primarily in urban areas, as well as air toxics. 
Several also pointed to additional provisions of the CAA, including 
general statements of purpose and the structure of the statute as a 
whole, to argue that Congress designed a regulatory scheme for 
regulating domestic emissions and domestic impacts in a manner that 
does not contemplate or authorize regulation in response to global 
climate change concerns. Several commenters also cited case law to 
argue that the CAA does not regulate extraterritorially. With respect 
to the ways in which the Endangerment Finding severed the statutory 
analysis, several commenters agreed that these considerations were 
relevant to statutory interpretation and authority as well as the 
quality or validity of the underlying analysis in the Endangerment 
Finding.
    Response: The EPA agrees with these comments and is finalizing, as 
proposed, that the Endangerment Finding exceeded the Agency's statutory 
authority under CAA section 202(a)(1) in multiple respects. In addition 
to the further discussion incorporated into section V.A.1 of this 
preamble, we agree that viewed as a whole, the legislative history and 
other materials contemporary to the 1965, 1970, and 1977 enactments 
most relevant to interpreting the key statutory language in CAA section 
202(a)(1) tend to undermine the interpretation adopted in the 
Endangerment Finding and support the interpretation we are finalizing 
in this action. While legislative history cannot trump the statutory 
text, widely publicized materials and evidence of common understanding 
at the time of enactment can be relevant to the

[[Page 7722]]

ordinary meaning of undefined terms. Here, that material supports the 
conclusion that ``air pollution'' as used in CAA section 202(a)(1) 
meant pollution that harms public health or welfare through local or 
regional exposure, rather than gases that are not harmful in that sense 
but may contribute to global phenomena on a far more attenuated chain 
of causation. We further agree that other provisions of the statute, 
including the findings and declarations of purpose in CAA section 101, 
support the interpretation finalized in this action by indicating that 
while Congress referenced and addressed local and regional problems, it 
did not reference global climate change concerns at all through the 
1970s and even today uses express terms in the relatively few 
provisions that address GHGs, such as in the RFS and provisions 
authorizing certain grants and financial or technical assistance.
    Comment: Adverse commenters argued that the EPA's proposed 
interpretation of CAA section 202(a)(1) is foreclosed in whole or in 
part by precedent. Many of those commenters argued that the Supreme 
Court's decision in Massachusetts unambiguously held that the EPA has 
authority to prescribe GHG emission standards for new motor vehicles 
and engines in response to global climate change concerns. Others also 
cited to subsequent cases, including the Supreme Court's decisions in 
American Electric Power Co. v. Connecticut, 564 U.S. 410, 426 (2011), 
UARG, and West Virginia, as well as the D.C. Circuit's decisions in 
Coalition for Responsible Regulation and American Lung Association, as 
individually or collectively precluding the EPA from evaluating and 
applying the best reading of CAA section 202(a)(1) and related 
provisions.
    Response: The EPA disagrees with these comments, many of which 
significantly overread relevant precedent and misunderstand principles 
governing the scope of judicial decisions and statutory interpretation. 
Fundamentally, commenters' arguments stem from the flawed proposition 
that the Supreme Court held in Massachusetts that the EPA can or must 
regulate GHG emissions from new motor vehicles and engines in response 
to global climate change concerns. As detailed in section V.A.1 of this 
preamble, we no longer believe that this reading is accurate on its own 
terms, nor does it reflect the Court's subsequent holdings and 
rationale in UARG, West Virginia, and, more generally, Michigan and 
Loper Bright. The Court in Massachusetts rejected the policy reasons 
the Agency offered for declining to regulate and the interpretation of 
the statutory definition of ``air pollutant'' in CAA section 302(g) 
that the Agency relied upon to deny petitions for rulemaking in 2003. 
Contrary to the framing presented by some commenters, the Court found 
that the statute ``foreclose[d]'' the Agency's reading and is 
``unambiguous'' only with respect to the ``air pollutant'' definition, 
holding that ``the definition embraces all airborne compounds of 
whatever stripe.'' 549 U.S. at 529 (citing 42 U.S.C. 7602(g)). Nor do 
commenters offer persuasive reasons to conclude that the Court's 
subsequent decision in UARG, which held that the term ``air pollutant'' 
as defined in the statute and construed in Massachusetts must be read 
in context of the regulatory provision in which it appears, applies to 
the entirety of the CAA except for CAA section 202(a)(1). 573 U.S. at 
318-20 (``[Massachusetts] did not hold that EPA must always regulate 
[GHGs] as an `air pollutant' everywhere that term appears in the 
statute, but only that EPA must `ground its reasons for action or 
inaction in the statute,' rather than on `reasoning divorced from the 
statutory text.' '' (quoting 549 U.S. at 532, 535)).
    Similarly, we disagree with commenters' suggestions that additional 
precedents since Massachusetts purported to decide the interpretive 
issues addressed in this final action. In American Electric Power, for 
example, the Supreme Court held that federal common law was not the 
appropriate avenue for deciding ``whether and how to regulate carbon-
dioxide emissions from powerplants.'' 564 U.S. at 426. Indeed, the 
Court has since confirmed in West Virginia that it ``said nothing about 
the ways in which Congress intended EPA to exercise its power'' under 
the CAA, particularly with respect to the regulation of stationary 
sources under CAA section 111(d). 597 U.S. at 730. Commenters' attempt 
to repeat similar arguments for UARG and West Virginia lack credibility 
given the questions presented in those cases and the reasoning adopted 
by the Court with respect to the questions presented. These comments 
largely did not engage with the interpretation of ``air pollution'' 
presented at proposal and finalized in this action, and the relatively 
small number that did failed to offer persuasive evidence that rebuts 
the ordinary meaning of the term or relevant contextual or structural 
indicators in the statutory text. For additional discussion of these 
cases, the D.C. Circuit's decisions in Coalition for Responsible 
Regulation and American Lung Association, and other issues bearing on 
statutory interpretation, see the Response to Comments document.
    In this final action, the EPA is acting consistently with 
Massachusetts by ``ground[ing] its reasons for action or inaction in 
the statute'' and concluding that, given the best reading of the 
language in CAA section 202(a)(1), we lack authority to issue an 
affirmative finding that triggers our regulatory authority in response 
to global climate change concerns. 549 U.S. at 535.
    Comment: Adverse commenters also asserted that the EPA's proposed 
interpretation gave inadequate weight to the statutory terms ``public 
health'' and ``welfare.'' These commenters generally argued that 
Congress delegated broad authority to the EPA to regulate any air 
pollutant emissions in response to any air pollution that may arise in 
the future, so long as we conclude such regulation further public 
health or welfare. Several of these commenters focused particularly on 
the statutory definition of welfare in CAA section 302(g), and 
particularly on the term ``climate,'' to argue that Congress wrote 
these concepts into the statute to give the Agency such broad 
authority.
    Response: The EPA disagrees that the references in CAA section 
202(a)(1) to ``public health'' and ``welfare'' confer discretion broad 
enough to identify and regulate any form of air pollution, including in 
the form of global climate change concerns. As discussed in section 
V.A.1 of this preamble, that interpretation, which we acknowledge is 
consistent with the interpretation adopted in the Endangerment Finding, 
is inconsistent with ordinary principles of statutory interpretation 
and would needlessly give rise to absurdity and nondelegation concerns 
that the statute itself does not create, properly interpreted. With 
respect to the statutory definition of ``welfare,'' we note that the 
ordinary meaning of the term ``climate'' at the time of enactment is 
nowhere near as broad as commenters suggest and that the term, as well 
as additional terms in the definition such as ``weather'' and 
``visibility,'' must be read in the context of a much broader list that 
consists of terms having the physical property of being local or 
regional. For additional discussion, see the detailed explanation of 
the term ``welfare'' and additional statutory terms informed by 
proximate cause principles, including ``cause,'' ``contribute,'' and 
``reasonably be anticipated to endanger,'' in the Response to Comments 
document.

[[Page 7723]]

B. Lack of Clear Congressional Authorization

    The EPA is also finalizing as proposed that, in addition to the 
basis set out above, we lack the ``clear congressional authorization'' 
required under the major questions doctrine to decide the Nation's 
response to global climate change concerns. West Virginia, 597 U.S. at 
723 (quoting UARG, 573 U.S. at 324). In this subsection, we conclude 
that the major questions doctrine applies to the Endangerment Finding 
because the global climate change concerns addressed in that action, 
and the mandatory duty to regulate triggered by that action, present a 
major question of undeniable political and economic significance. Until 
2009, we had never used CAA section 202(a)(1) to assert authority over 
an entirely new subject, instead hewing closely to the air pollution 
problems that Congress identified in CAA section 202. To break with 
this longstanding practice, we developed a ``unique'' framework that 
broadened our statutory authority to prescribe emission standards in 
response to air pollution far enough to encompass global climate change 
concerns. The result was a new policy direction for the United States--
one that Congress had repeatedly and recently declined to adopt--in 
which the EPA declared that every source and every nation must be 
required to ``do their part'' to combat global climate change. 
Implementation of the Endangerment Finding since 2009 has shown the 
extraordinary consequences of this assertion of authority, including an 
increasing trend toward forcing a shift from internal combustion engine 
(ICE) vehicles to EVs for virtually all classes of LD, MD, and HD 
vehicles.
    Next, we conclude that Congress did not clearly authorize the EPA 
to decide this question when it empowered the Administrator to 
``prescribe . . . standards'' for new motor vehicle and engine 
emissions under CAA section 202(a)(1). The general nature of the 
statutory text and the more specific authorities and commands 
throughout CAA section 202, as well as additional provisions throughout 
the CAA, leave no room for doubt that Congress knew how to, and did 
not, expressly authorize the regulation of vehicle and engine GHG 
emissions. On that basis, we determine that the Endangerment Finding 
and resulting GHG emission standards exceeded our statutory authority 
and must be rescinded. That conclusion follows from the Supreme Court's 
decisions in UARG and West Virginia and is consistent with 
Massachusetts, which held that GHGs fell within the definition of ``air 
pollutant'' but did not interpret the scope of our authority to 
regulate air pollutants that cause, or contribute to, air pollution 
which may reasonably be anticipated to endanger public health or 
welfare.
1. Final Rationale
    Applicability of the Major Questions Doctrine. In recent decisions 
construing the scope of the EPA's statutory authority to regulate GHGs, 
the Supreme Court has emphasized that the `` `history and breadth of 
the authority' '' asserted by an agency and ``the `economic and 
political significance' of that assertion'' provide `` `a reason to 
hesitate before concluding that Congress' meant to confer such 
authority.'' West Virginia, 597 U.S. at 721 (quoting Brown & 
Williamson, 529 U.S. at 159-60); accord UARG, 573 U.S. at 324. Whether 
viewed as an ordinary tool of statutory interpretation that looks to 
the structure of the regulatory scheme \149\ or a clear statement rule 
that implements nondelegation and separation of power principles,\150\ 
the major questions doctrine requires us to identify ``more than a 
merely plausible textual basis'' when asserting authority to decide a 
significant policy issue on Congress' behalf. Id. at 723.
---------------------------------------------------------------------------

    \149\ Biden v. Nebraska, 600 U.S. 477, 507-21 (2023) (Barrett, 
J., concurring).
    \150\ West Virginia, 597 U.S. at 735-51 (Gorsuch, J., 
concurring).
---------------------------------------------------------------------------

    In UARG, the Supreme Court applied the major questions doctrine to 
reject our attempt to expand the number of stationary sources subject 
to the CAA's PSD and Title V permitting requirements based on their GHG 
emissions. 573 U.S. at 310-13.\151\ The Court held that the EPA had 
``exceeded its statutory authority when it interpreted the Clean Air 
Act to require PSD and Title V permitting for stationary sources based 
on their greenhouse gas emissions'' and ``may not treat greenhouse 
gases as a pollutant'' in this PSD and Title V contexts. Id. at 333. In 
reaching this conclusion, the Court found that our interpretation of 
the statute and related ``tailoring rule'' that exempted many sources 
to address workability concerns was ``unreasonable because it would 
bring about an enormous and transformative expansion in EPA's 
regulatory authority without clear congressional authorization.'' Id. 
at 324. Citing earlier major questions doctrine precedents, the Court 
noted that ``a measure of skepticism'' is required when ``an agency 
claims to discover in a long-extant statute an unheralded power to 
regulate `a significant portion of the American economy,' '' id. 
(quoting Brown & Williamson, 529 U.S. at 159), and that ``[w]e expect 
Congress to speak clearly if it wishes to assign to an agency decisions 
of vast `economic and political significance,' '' id. (quoting Brown & 
Williamson, 529 U.S. at 160).
---------------------------------------------------------------------------

    \151\ See 42 U.S.C. 7470-92, 7661 et seq.
---------------------------------------------------------------------------

    In West Virginia, the Supreme Court again applied the major 
questions doctrine to reject our attempt to shift the power grid away 
from using fossil fuels through GHG emission guidelines for existing 
power plants under CAA section 111(d). 597 U.S. at 711-15.\152\ The 
Court noted that when interpreting a grant of regulatory authority, the 
inquiry includes the question ``whether Congress in fact meant to 
confer the power the agency has asserted.'' Id. at 721. The Court 
explained that the major questions doctrine applies when ``the `history 
and breadth of the authority that [the agency] has asserted,' and the 
`economic and political significance' of that assertion, provide `a 
reason to hesitate before concluding that Congress' meant to confer 
such authority.'' Id. (quoting Brown & Williamson, 529 U.S. at 159-60). 
In such cases, ``both separation of powers principles and a practical 
understanding of legislative intent make us `reluctant to read into 
ambiguous statutory text' the delegation claimed to be lurking there,'' 
and ``[t]he agency instead must point to `clear congressional 
authorization' for the power it claims.'' Id. at 723 (quoting UARG, 573 
U.S. at 324). Applying that standard, the Court held that our statutory 
authority to establish emission limits under CAA section 111(a)(1) and 
(d) ``is not close to the sort of clear authorization required by our 
precedents.'' Id. at 732.
---------------------------------------------------------------------------

    \152\ See 42 U.S.C. 7411(d). The EPA had also issued GHG 
performance standards for new and modified fossil fuel-fired power 
plants under CAA section 111(b) that triggered the Agency's 
authority to issue guidelines for existing sources under CAA section 
111(d). The new source standards were not before the Supreme Court 
in West Virginia.
---------------------------------------------------------------------------

    The Endangerment Finding implicates the major questions doctrine 
for many of the same reasons the Supreme Court applied it in UARG and 
West Virginia. By asserting authority to regulate in response to global 
climate change concerns, the EPA `` `claim[ed] to discover in a long-
extant statute an unheralded power' representing a `transformative 
expansion in [its] regulatory authority.' '' West Virginia, 597 U.S. at 
724 (quoting UARG, 573 U.S. at 324). From 1965 to 2009, we invoked CAA 
section 202(a)(1) consistent with the more specific direction provided 
elsewhere in section 202 regarding the

[[Page 7724]]

air pollution Congress intended the EPA to address under this 
authority. As noted in section III.A of this preamble, the 15 final 
rules we identified as invoking CAA section 202(a)(1) prescribed 
standards for air pollution problems enumerated in the statute, 
including HC and other VOCs, NOX, PM, and certain air 
toxics. Critically, Congress repeatedly amended the statute to instruct 
the EPA what, when, and how to regulate with respect to vehicle and 
engine emissions. For example, the 1970 CAA included instructions to 
regulate CO, HCs, and NOX under CAA section 202(a) now 
codified as amended in CAA section 202(b).\153\ The 1990 CAA amendments 
included additional instructions to regulate CO, certain HCs, 
NOX, and PM.\154\ These final rules carried out Congress' 
instruction to use CAA section 202 in particular ways and did not 
purport to use CAA section 202(a)(1) as a blanket authorization to 
explore new vistas on a discretionary basis.
---------------------------------------------------------------------------

    \153\ Public Law 91-604, section 6, 84 Stat. 1676, 1691.
    \154\ Public Law 101-549, section 203, 104 Stat. 2399, 2474.
---------------------------------------------------------------------------

    Given this history, the novel use of CAA section 202(a)(1) in the 
Endangerment Finding is similar to the use of CAA section 111(d) 
addressed in West Virginia. There, the Supreme Court found that the 
EPA's use of the provision in a more limited fashion prior to the Clean 
Power Plan counseled in favor of applying the major questions doctrine, 
noting that `` `just as established practice may shed light on the 
extent of power conveyed by general statutory language, so the want of 
assertion of power by those who presumably would be alert to exercise 
it, is equally significant in determining whether such power was 
actually conferred.' '' 597 U.S. at 725 (quoting FTC v. Bunte Bros., 
Inc., 312 U.S. 349, 352 (1941)). We further note that the regulatory 
actions reviewed in UARG and West Virginia were predicated in part on 
the Endangerment Finding, and the PSD and Title V rules in UARG and 
existing source emission guidelines in West Virginia are similar in 
scope, approach, and economic impact as the GHG emission standards for 
new motor vehicles and engines promulgated to fulfill the mandatory 
duty triggered by the Endangerment Finding.
    Moreover, as a consequence of the novel approach taken in the 
Endangerment Finding to endangerment and contribution, our GHG emission 
standards reflect an increasing trend toward mandating a shift from 
gasoline- and diesel-fueled vehicles to EVs on the theory that a 
substantial reduction in GHG emissions is necessary to address global 
climate change concerns.\155\ This trend was evident in our earliest 
GHG emission standards rulemakings and became increasingly clear over 
time as the standards increased in stringency to the point where 
alternative compliance options were increasingly infeasible or 
unattractive for regulated parties. The underlying policy of forcing 
such a transition is also evident from the Agency's statements and 
actions on related issues. For further discussion of relevant 
regulatory history and implementation details, both of which generated 
significant public input during the comment period, see the Response to 
Comments document in the docket for this rulemaking.
---------------------------------------------------------------------------

    \155\ 89 FR 27842, 27844 (Apr. 18, 2024).
---------------------------------------------------------------------------

    Mandating a shift in the national vehicle fleet from one type of 
vehicle to another is indistinguishable from the emission guidelines at 
issue in West Virginia, which were calculated to force a shift from one 
means of electricity generation to another. This increasing regulatory 
trend has borne out over time given the limits of using GHG emission 
control technologies applicable to new motor vehicles and engines that 
comport with the magnitude of the problem identified in the 
Endangerment Finding. As discussed later in this preamble, even 
eliminating all GHG emissions from all U.S. vehicles and engines would 
have only a de minimis impact on GMST and GSLR trends as a proxy for 
adverse health and welfare impacts. See section V.C of this preamble 
and the Response to Comments document for further discussion.
    It is `` `highly unlikely that Congress would leave' to `agency 
discretion' the decision'' whether and how many consumers and 
manufacturers in the United States may use the ICE in their vehicles. 
West Virginia, 597 U.S. at 729 (quoting MCI Telecomms. Corp. v. AT&T 
Co., 512 U.S. 218, 231 (1994)). As the Supreme Court noted with respect 
to coal-based electricity generation, such a policy decision involves 
``basic and consequential tradeoffs,'' and ``Congress certainly has not 
conferred a like authority upon EPA anywhere else in the Clean Air 
Act.'' Id. Until the Endangerment Finding, we had never invoked CAA 
section 202(a)(1) to regulate in response to global climate change 
concerns, whether through a fuel-shifting strategy or any other means. 
That history is telling because although CAA section 202(a)(1) has 
existed in substantially similar form since 1967, ``the EPA had never 
regulated in that manner, despite having issued many prior rules 
governing'' vehicle and engine emissions. Id. When Congress intended 
the EPA to regulate the type of fuels that propel vehicles, it provided 
express and detailed authority to do so in other provisions. CAA 
section 211 authorizes the Agency to regulate fuel and fuel additives, 
including by requiring registration and controlling or prohibiting the 
manufacture, distribution, or sale of fuel or fuel additives if the 
Administrator determines that ``any emission product of such fuel or 
fuel additive causes, or contributes, to air pollution or water 
pollution . . . that may reasonably be anticipated to endanger the 
public health or welfare'' or significantly impair the performance of 
any generally used emission control device.\156\ Moreover, CAA section 
211(o) sets out detailed requirements for the Agency's RFS program, 
which involves setting annual renewable fuel volume requirements 
applicable to refiners, blenders, distributors, and importers of 
transportation fuel.\157\ Both of these provisions, with respect to the 
Nation's policy approach to GHGs generally and transportation fuel 
specifically, indicate that Congress knows how to establish policy on 
the subject and has declined to empower the EPA to decide for itself 
whether and how to respond to global climate change concerns.
---------------------------------------------------------------------------

    \156\ 42 U.S.C. 7545(a)-(c).
    \157\ 42 U.S.C. 7545(o).
---------------------------------------------------------------------------

    Both before and since the Endangerment Finding, `` `Congress 
considered and rejected' multiple times'' legislation that would have 
authorized or required the EPA to regulate GHG emissions from vehicles, 
engines, and additional sources. West Virginia, 597 U.S. at 731 
(quoting Brown & Williamson, 529 U.S. at 144). This history is 
particularly relevant because of the established pattern through the 
1990 CAA amendments of Congress adding additional emissions control 
authority and obligations to CAA section 202. From 2007 to 2009, 
Congress considered legislation--supported by the President and 
Administrator in office at the time of the Endangerment Finding--that 
would have authorized or required the EPA to prescribe emissions 
regulations for GHGs. For example, the Safe Climate Act of 2007 would 
have adopted findings and policies with respect to limiting global 
temperature increase, required various forms of international 
cooperation, and added a new Title VII to the CAA instructing the EPA 
to achieve phased GHG emission reduction targets and regulate GHG 
emissions

[[Page 7725]]

under CAA section 202.\158\ Similarly, the American Clean Energy and 
Security Act of 2009 would have required international cooperation and 
added new titles to the CAA requiring the EPA to, among other things, 
regulate GHG emissions under CAA section 202.\159\ Neither bill was 
enacted through the legislative process, and Congress has since 
declined to adopt similar legislation.\160\
---------------------------------------------------------------------------

    \158\ H.R. 1590, 110th Cong. (2007). This bill was presented in 
the House of Representatives and never received a vote.
    \159\ H.R. 2454, 111th Cong. (2009). This bill, introduced on 
May 15, 2009--a month after the EPA proposed the Endangerment 
Finding--passed the House of Representatives on June 26, 2009, by a 
219-212 margin but never received a vote in the Senate. The 
President and Administrator at the time expressed a strong 
preference for legislation but also a willingness to resolve 
legislative inaction by administrative means, and the Agency 
ultimately finalized the Endangerment Finding on December 7, 2009.
    \160\ Congress's pattern of not providing the EPA such authority 
extends long before the 2009 Endangerment Finding as well. See Coal. 
for Responsible Regulation, 2012 U.S. App. LEXIS 25997, at * 36-37 
(Brown, J., dissenting from denial of rh'g en banc) (noting Congress 
expressly rejected proposals offered during the drafting of the 1990 
CAA Amendments that would have authorized the EPA to regulate GHGs).
---------------------------------------------------------------------------

    When Congress has addressed GHGs individually or collectively, it 
has not granted the EPA broad regulatory authority to ``prescribe . . . 
standards'' under CAA section 202(a)(1). As noted above, Congress 
enacted the RFS program to promote energy independence while reducing 
GHG emissions through a detailed regulatory scheme. With respect to 
HFCs, Congress enacted a comprehensive phaseout scheme in the 2020 
American Innovation and Manufacturing (AIM) Act, which includes 
detailed instructions, timelines, and requirements for implementation 
and allows some uses to continue under certain conditions.\161\ With 
respect to CO2, Congress opted for a carrot rather than a 
stick by authorizing a tax credit to incentivize underground 
sequestration that mitigates emissions.\162\ With respect to methane, 
Congress amended the CAA in 2021 through the Inflation Reduction Act of 
2022 (IRA) to require us to establish a waste emissions charge for 
certain sources structured to incentivize emissions reductions over 
time.\163\ When addressing GHGs and global climate change concerns more 
generally, Congress has used non-regulatory tools that incentivize, 
rather than mandate, changes in manufacturing and consumer choice, 
including through additional funding provisions in the IRA.\164\ 
Multiple instances of recent legislation addressing GHGs individually 
and through distinct regulatory approaches suggests that Congress views 
such policy decisions as economically and politically significant and 
not adequately addressed by general statutory authorities enacted in 
response to different problems.
---------------------------------------------------------------------------

    \161\ Public Law 116-260, Div. S, 134 Stat. 1182, 2255-71 
(codified at 42 U.S.C. 7675 et seq.).
    \162\ 26 U.S.C. 45Q. In 2020, Congress also instructed us to 
recommend improvements to SDWA permitting procedures for injection 
wells used in carbon sequestration and appropriated additional 
fundings for the ``Class VI'' permitting process. Public Law 116-
260, Div. G, Title II, 134 Stat. 1182, 1507-16.
    \163\ Public Law 117-169, section 60113, 136 Stat. 1818, 2074 
(codified at 42 U.S.C. 7436).
    \164\ See, e.g., Public Law 117-169, sections 60101-03, 60107, 
60114, 60201, 136 Stat. 1818, 2063-66, 2069, 2076, 2078 (codified at 
42 U.S.C. 7432-35, 7437-38).
---------------------------------------------------------------------------

    The EPA notes that Congress has continued to revise these air 
pollutant-specific measures and nonregulatory tools as part of an 
ongoing national debate over the appropriate response to global climate 
change concerns. On July 4, 2025, President Trump signed into law 
significant new legislation enacted by Congress, the One Big Beautiful 
Bill Act (OBBB),\165\ which repealed several relevant measures adopted 
in the IRA and rescinded the EPA's appropriations to carry out several 
funding programs related to GHG emissions. Among other things, Congress 
prohibited the Agency from collecting the waste emission charge for 
methane for ten years beyond the original statutory collection date, 
rescinded funding to administer grant programs in CAA sections 132 and 
135-38, and repealed CAA section 134, which had included a section-
specific definition of ``greenhouse gas'' applicable to the grant 
program set out in that section.\166\ This legislation, which was the 
product of substantial national debate and revised and rescinding 
funding for provisions of the IRA that were themselves the product of 
substantial national debate, indicates that the EPA erred in attempting 
to resolve significant policy issues on its own accord in the 
Endangerment Finding.
---------------------------------------------------------------------------

    \165\ Public Law 119-21.
    \166\ 42 U.S.C. 7434(c)(2) (2022).
---------------------------------------------------------------------------

    Congress has also recently disapproved several actions taken by the 
EPA with respect to GHG emissions. On May 19, 2025, President Trump 
signed into law a resolution adopted by Congress under the 
Congressional Review Act (CRA) to void our final rule implementing the 
waste emission charge added to the CAA in 2021.\167\ And on June 12, 
2025, President Trump signed into law three resolutions adopted by 
Congress under the CRA \168\ to void waivers we granted under CAA 
section 209 that allowed California and participating States to enforce 
GHG emission regulations for motor vehicles and engines, up to and 
including zero-emission standards that mandated a shift to electric 
vehicles.\169\ These disapproval resolutions further demonstrate the 
economic and political significance of the EPA's GHG emission 
regulations and reinforce the understanding that Congress intends to 
reserve such major questions of policy for itself. See West Virginia, 
597 U.S. at 731-32.
---------------------------------------------------------------------------

    \167\ Public Law 119-2; see 90 FR 21225 (May 19, 2025).
    \168\ H.J. Res. 87; H.J. Res. 88; H.J. Res. 89; see also Diamond 
Alt. Energy, LLC v. EPA, 606 U.S. 100, 107 n.1 (2025); Statement by 
the President (June 12, 2025): https://www.whitehouse.gov/briefings-statements/2025/06/statement-by-the-president/.
    \169\ For example, California's Advanced Clean Cars II required 
an increasing amount of EVs to be sold so that by 2035 100 percent 
of new cars and light trucks sold in California would be zero-
emission vehicles, including PHEV. See California Air Resources 
Board, California moves to accelerate to 100% new zero-emission 
vehicle sales by 2035, available at https://ww2.arb.ca.gov/news/california-moves-accelerate-100-new-zero-emission-vehicle-sales-2035.
---------------------------------------------------------------------------

    Conclusion. Under the major questions doctrine, we conclude that 
the EPA lacks the ``clear congressional authorization'' required for 
the novel approach taken in the Endangerment Finding and resulting GHG 
emission standards and must rescind these actions. West Virginia, 597 
U.S. at 723 (quoting UARG, 573 U.S. at 324). Our statutory authority 
under CAA section 202(a)(1) to ``prescribe . . . standards'' does not 
clearly authorize the EPA to regulate in response to global climate 
change concerns or, in issuing such regulations, to trend toward 
mandating a shift from gas- and diesel-fueled vehicles to EVs. This 
conclusion follows whether the major questions doctrine is viewed as an 
ordinary interpretive principle or a protection against violations of 
the separation of powers. As discussed previously in section V.A.1 of 
this preamble, an interpretation of CAA section 202(a)(1) that permits 
the EPA to define and regulate any ``air pollution'' the Agency 
believes may harm public health or welfare, broadly defined, would 
raise serious absurdity and nondelegation concerns. Properly 
interpreted, the statute does not and need not raise such concerns 
given the best reading of the statute or application of the major 
questions doctrine.
    In West Virginia, the Supreme Court held that our authority under 
CAA section 111 ``to establish emission caps at a level reflecting `the 
application of the best system of emission reduction . . . adequately 
demonstrated' '' did not

[[Page 7726]]

clearly authorize the EPA to issue emission guidelines that addressed 
global climate change concerns by mandating a shift away from coal-
generated electricity. 597 U.S. at 732. Similarly, in UARG, the Court 
held that our PSD and Title V authorities could not fully be extended 
to GHG emissions because those provisions ``are designed to apply to, 
and cannot rationally be extended beyond, a relative handful of large 
sources capable of shouldering heavy substantive and procedural 
burdens.'' 573 U.S. at 303. In these and other recent precedents, the 
Court has made clear that the express statutory authority required by 
major questions doctrine requires more than general language conferring 
``a merely plausible textual basis for the agency action.'' West 
Virginia, 597 U.S. at 723.\170\
---------------------------------------------------------------------------

    \170\ See, e.g., Nebraska, 600 U.S. at 506-07 (Department of 
Education lacked clear authority to forgive student loans under 
statutory language authorizing the Secretary to ``waive or modify 
any statutory or regulatory provision applicable to the student 
financial assistance programs . . . deem[ed] necessary in connection 
with a war or other military operation or national emergency''); 
Ala. Ass'n of Realtors v. HHS, 594 U.S. 758 (2021) (CDC lacked clear 
authority to impose eviction moratorium during the COVID-19 pandemic 
under language permitting ``such regulations as in [the Surgeon 
General's] judgment are necessary to prevent the introduction, 
transmission, or spread of communicable diseases'').
---------------------------------------------------------------------------

    These cases control the analysis of our authority under CAA section 
202(a). As in West Virginia, our statutory authority and the findings 
required to invoke that authority do not clearly authorize the approach 
taken in the Endangerment Finding and subsequent regulations. And as in 
UARG, our statutory authority to ``prescribe . . . standards'' for 
emissions of certain air pollutants does not clearly authorize using 
the CAA's vehicle-emission control scheme to address global climate 
change concerns. As discussed above, the Endangerment Finding did not 
limit itself to considering the impacts of GHG emissions from new motor 
vehicles and engines. Rather, the Endangerment Finding reviewed the 
totality of adverse impacts from climate change attributed to all 
anthropogenic sources of GHG emissions worldwide and asserted 
jurisdiction over CAA section 202(a) sources by finding they 
contributed to such impacts by emitting more than de minimis quantities 
of GHGs. That understanding has permeated our GHG emission rulemakings 
since 2009, and we have attempted to apply that framework to our 
distinct regulatory authorities across the rest of the CAA.
    In Massachusetts, the Supreme Court disagreed with the EPA's 
argument that GHGs were not ``air pollutants'' because Congress had not 
revisited CAA section 202(a) in amending the CAA in 1990. 549 U.S. at 
512-13. The Court found that our reliance on Brown & Williamson to 
support that argument was misplaced because unlike the ban on tobacco 
products at issue in that case, ``EPA jurisdiction would lead to no 
such extreme measures.'' Id. at 531. The Court also found that unlike 
the FDA's earlier statements on tobacco products, the ``EPA had never 
disavowed the authority to regulate greenhouse gases'' and had issued a 
memorandum in 1998 suggesting that we had such authority. Id.
    Massachusetts did not consider or have reason to interpret the 
scope of the EPA's authority under CAA section 202(a) given our 
position in the 2003 Denial that GHGs are not ``air pollutant[s]'' 
under any provision of the statute. Rather, Massachusetts rejected our 
position that GHGs are ``categorically'' excluded from the CAA and 
remanded for the Administrator to determine whether four GHGs met the 
standard in CAA section 202(a). UARG, 573 U.S. at 320. Further, 
Massachusetts must be read together with the Supreme Court's decisions 
in West Virginia and UARG, which applied the major questions doctrine 
to statutory provisions similar to CAA section 202(a), as well as other 
relevant precedents decided since 2007.\171\ The decision in 
Massachusetts necessarily does not reflect consideration of these 
precedents or additional legislative and regulatory developments since 
that time. As noted above, the EPA's rulemakings have not been limited 
to emission standards as anticipated in Massachusetts, but instead 
reflect an increasing trend toward mandating a transition toward EVs 
for virtually all classes of LD, MD, and HD vehicles.
---------------------------------------------------------------------------

    \171\ We note that recent Supreme Court decisions have not cited 
Massachusetts as a precedent applying, or declining to apply, the 
major questions doctrine. See, e.g., Nebraska, 600 U.S. 477; West 
Virginia, 597 U.S. 697.
---------------------------------------------------------------------------

2. Summary of Comments and Updates Since Proposal
    The EPA received comments from a variety of stakeholders supporting 
and criticizing the legal rationale set out in the proposed rule. 
Commenters supporting the rescission and repeals pointed to West 
Virginia as virtually conclusive with respect to the applicability and 
outcome of the major questions doctrine analysis. These commenters 
generally agreed that the Endangerment Finding itself runs afoul of the 
doctrine by launching the EPA into a policy field that Congress has not 
decided whether and how to enter as a regulatory matter and, 
separately, that the EPA's increasing trend in GHG emission standard 
rulemakings toward forcing a shift toward EVs also runs afoul of the 
doctrine. Some commenters argued that the doctrine applied to the GHG 
emission standards but not the Endangerment Finding, including because 
the standards have increasingly trended toward forcing a shift to EVs. 
Commenters opposing the rescission and repeals generally argued that 
the Supreme Court's decision in Massachusetts must be read as shielding 
CAA section 202(a) from the major questions analysis. Some of these 
commenters also insisted that the regulation of GHG emissions from new 
motor vehicles and engines is not economically or politically 
significant, or that CAA section 202(a)(1) expressly authorizes the EPA 
to assert such authority by using broad language intended to achieve 
what they assert is the statute's precautionary purpose. The final 
rationale set out in the preceding section of the preamble reflects 
this input by including certain contentions raised by commenters and 
additional analysis developed in response to criticisms raised during 
the public comment period. In this subsection, we summarize major 
themes presented in the comments received along with our high-level 
responses. For detailed comment summaries and our full responses 
thereto, please see the Response to Comments document in the docket for 
this rulemaking.
    Comment: Commenters supportive of the proposal agreed that 
prescribing GHG emission standards in response to global climate change 
concerns is a major question of social, economic, and political 
importance and that the EPA lacked clear congressional authorization to 
issue the Endangerment Finding and associated GHG emission standards 
authorized by that invocation of authority. These commenters argued 
that by purporting to resolve significant aspects of the climate change 
debate by deciding the Nation's policy response for itself in the first 
instance, the EPA asserted an unheralded authority that infringed on 
Congress's prerogatives. Several of these commenters argued that the 
Endangerment Finding preempted Congress by purporting to resolve an 
issue that was being actively debated and negotiated on the House and 
Senate floors in 2009 and identified additional instances in which 
Congress considered but declined to adopt legislation that would have 
granted the very authority that the EPA asserted in the Endangerment 
Finding. Such commenters also argued that congressional inaction means 
that we

[[Page 7727]]

never had authority to regulate GHGs in this manner, and that authority 
cannot be manufactured by placing the burden on Congress in the 
aftermath of the Endangerment Finding to affirmatively intervene to 
override the Agency's actions.
    Response: The EPA agrees with the commenters that the major 
questions doctrine applies to the authority we asserted under CAA 
section 202(a)(1) for the first time in the 2009 Endangerment Finding. 
In that standalone action, the EPA established the legal foundation to 
regulate GHG emissions under CAA section 202(a)(1) and knowingly 
triggered a statutory obligation to regulate GHG emissions not only in 
the transportation sector, but in other respects as well, including the 
stationary source permitting context. The importance and extraordinary 
consequences of that decision were both foreseeable and foreseen by the 
EPA at the time, as evidenced by the 2008 ANPRM and statements made and 
actions taken by the EPA in 2009 and 2010. See, e.g., 73 FR 44355 
(``[I]f EPA were to regulate [GHG] emissions from motor vehicles under 
the Clean Air Act, then regulation of smaller stationary sources that 
also emit GHGs--such as apartment buildings, large homes, schools, and 
hospitals--could also be triggered. . . . The potential regulation of 
greenhouse gases under any portion of the [CAA] could result in an 
unprecedented expansion of EPA authority that would have a profound 
effect on virtually every sector of the economy and touch every 
household in the land.''); 74 FR 66502 (``Once the final affirmative 
contribution and endangerment findings are made, EPA has the authority 
to issue the final emission standards for new light-duty motor 
vehicles.''). Intervening events, including those addressed in UARG and 
West Virginia, have further demonstrated what was widely understood in 
2009--the Endangerment Finding launched an entirely new field of 
regulation in which the EPA has applied, or attempted to apply, 
significant and costly regulations on virtually all major sectors of 
the American economy.
    In this way, the EPA's invocation of authority in the Endangerment 
Finding followed by the mandatory issuance of regulations operates 
similarly to the assertion of authority to which the Supreme Court 
applied the major questions doctrine in West Virginia. The Agency's 
emission guidelines for existing power plants under CAA section 111(d) 
also imposed costs and forced generation shifting in an indirect 
manner. First, we issued regulations determining the amount of 
pollution reduction to be achieved; second, States were required to 
submit plans containing the emissions restrictions they intended to 
implement and enforce to achieve those reductions; and third, we would 
review those State plans for consistency with CAA requirements and 
allow them to enter into force through an approval or substitute State 
plans for a Federal plan in the event of disapproval. Similarly here, 
the EPA asserted authority in the Endangerment Finding that, by 
operation of law, triggered an obligation to prescribe GHG emission 
standards under CAA section 202(a)(1), triggered stationary source 
permitting requirements, and served as the basis for extending the 
reach of GHG emission regulations to additional sources, all as 
predicted in the 2008 ANPRM.
    Further, the new motor vehicle standards issued by the EPA 
separately and independently trigger the major questions doctrine by 
forcing a transition toward the use of EVs rather than the ICE in a 
manner similar to the generation shifting at issue in West Virginia. As 
early as the EPA's first light-duty vehicle rule in 2010, the Agency 
relied on and knew its regulations would lead to increased EV 
production. See 75 FR 25324, 25332 (May 7, 2010) (noting that the 
``commercialization of [EVs] and plug-in hybrids,'' as well as 
``increased use of start-stop technology,'' were available avenues for 
compliance).
    Comment: Adverse commenters asserted that the major questions 
doctrine does not apply to CAA section 202(a)(1) because of what they 
describe as a holding in Massachusetts that the regulation of GHGs 
under that provision is permissible and/or not a major question. These 
commenters cited to the Supreme Court's discussion of Brown & 
Williamson in that decision, along with statements made by the Agency 
in prior GHG emission standards rulemakings, to support the contention 
that the major questions analysis is inapplicable or that precedent 
establishes the requisite clear authorization.
    Response: The EPA disagrees with these comments. As explained in 
section V.B.1 of this preamble and discussed further in the Response to 
Comments document, the Supreme Court drew no such distinctions in West 
Virginia when it held that the major questions doctrine applies to 
``all corners of the administrative state,'' even if the ``regulatory 
assertions had a colorable textual basis.'' 597 U.S. at 721-23 
(citation omitted). The Court did not appear to understand itself to be 
applying the major questions doctrine in Massachusetts, and has not, in 
subsequent cases, treated Massachusetts as an example of applying or 
declining to apply the doctrine. Rather, the Court in Massachusetts 
distinguished Brown & Williamson on its facts. That discussion does not 
stand for the proposition that CAA section 202(a)(1) is immune from 
major questions scrutiny, and many of the distinctions drawn in 
Massachusetts as to Brown & Williamson are now themselves 
distinguishable given the EPA's subsequent reasoning in the 
Endangerment Finding and actions taken to implement the Endangerment 
Finding since 2009.
    Comment: Adverse commenters asserted that if major questions 
doctrine is relevant here, its principles cut against what they 
described as the EPA's novel interpretation of CAA section 202(a)(1). 
These commenters argued that for nearly 20 years, Congress has declined 
to overturn what commenters described as the judicial decisions 
upholding the EPA's authority to regulate GHG emissions or to amend CAA 
section 202 to restrict the Agency's authority in this respect. 
Commenters asserted that rescinding the Endangerment Finding would 
itself create an abrupt reordering in an area of economic and political 
significance and is an assertion of authority that would be both novel 
and dubious and potentially threaten the separation of powers.
    Commenters asserted that under the major questions doctrine, the 
EPA is not able to reverse what they described as the Agency's 
longstanding interpretation dating back to the Endangerment Finding 
without being given authority by Congress to do so. Commenters stated 
that Congress has enacted numerous laws that have recognized GHGs are 
air pollutants subject to regulation under the CAA. Commenters argued 
that Massachusetts and the Endangerment Finding have been established 
law since 2009 and that Congress has known about and enacted 
legislation on numerous occasions that recognize and affirm the legal 
interpretations made by the Supreme Court in Massachusetts and by the 
Agency in the Endangerment Finding.
    Response: The EPA disagrees with commenters and concludes the major 
questions doctrine supports the rescission of the Endangerment Finding 
and repeal of associated GHG emission standards. The EPA's 
interpretation of CAA section 202(a)(1) is not novel. As explained in 
sections III.A and IV.A of this preamble, it reflects the Agency's 
longstanding practice in applying CAA section 202(a)(1) for the four 
decades

[[Page 7728]]

prior to 2009. Moreover, rescinding the Endangerment Finding and 
repealing the associated GHG emission standards does not trigger the 
major questions doctrine because an agency's ability to reconsider, 
revise, and repeal prior actions is not an unheralded assertion of 
authority. As explained in section IV.A of this preamble, it is well 
established that an agency may reconsider, revise, and repeal prior 
actions unless the relevant statute provides otherwise, which is not 
the case here.
    In addition, the EPA disagrees with commenters' representations of 
the scope of the Supreme Court's decision in Massachusetts and 
characterizations of congressional actions since 2009. Tellingly, 
commenters point to no occasion in which Congress has adopted 
legislation that expands the scope of the EPA's authority to regulate 
GHG emissions from mobile or stationary sources. As noted elsewhere in 
this preamble, Congress considered between 2007 and 2009 draft 
legislation--emphatically supported by President Obama and the 
Administrator who issued the Endangerment Finding--that would have 
substantially revised the CAA to give the EPA express authority to 
regulate GHG emissions, including under Title II. That legislation 
failed to pass, and the relatively limited number of non-regulatory 
provisions Congress has enacted since that time relate either to non-
regulatory contexts or support our conclusion with respect to CAA 
section 202(a)(1) by indicating that Congress has adopted more 
detailed, particular solutions when it sought to address global 
problems, as with amendments to the RFS program and the AIM Act. This 
history falls well short of the standard courts have applied for 
inferring legislative acquiescence to either commenters' reading of 
Massachusetts or the EPA's assertion of authority in the 2009 
Endangerment Finding. Ultimately, commenters appear to be asserting 
what is more properly understood as reliance interests on prior actions 
taken by the Agency. Because the EPA concludes that we lack statutory 
authority to regulate in response to global climate change concerns 
under CAA section 202(a)(1), we cannot respond to such asserted 
reliance interests by retaining the Endangerment Finding and associated 
GHG emission standards on that basis.
    Indeed, commenters inadvertently reinforce why the major questions 
doctrine applies to the Endangerment Finding and necessitates its 
rescission. If rescission of the Endangerment Finding is significant 
enough to trigger the major questions doctrine, there is no persuasive 
reason to conclude that issuing the Endangerment Finding to initiate 
the resulting GHG regulatory program does not similarly trigger major 
questions scrutiny. Were commenters correct that only rescission 
triggers the doctrine, the result would be an untenable rule by which 
an Agency can expand its statutory authority through attrition even if 
application of the doctrine would otherwise require a different result.
    Comment: Some commenters said that they support the EPA's 
application of the major questions doctrine to the vehicle standards 
that effectively mandated EVs as a purported emissions control measure 
for motor vehicles powered by ICEs. They stated that as the EPA points 
out in the proposed rule, effectively mandating a shift away from ICE 
vehicles under CAA section 202(a)(1) is conceptually indistinguishable 
from the EPA's failed attempt to mandate generation shifting by reduced 
utilization of coal-fired power plants under CAA section 111(d). 
Commenters argued that both actions involve claims of novel and 
expansive regulatory authority under longstanding law, both have 
fundamental effects on key national industries and on the national 
economy, Congress has grappled repeatedly over time with whether and 
how GHG emissions from these industries should be regulated, and 
neither action is grounded in a clear statutory mandate.
    Commenters also said that the EPA's 2024 HD GHG Emission Standards 
Rule, without question, meet all the criteria for rescission under the 
major questions doctrine. These commenters argued that the Supreme 
Court in West Virginia held open the door for the rescission of what 
commenters described as sweeping EV truck mandates that impact broad 
segments of the national economy. Commenters argued that these 
standards are a direct analogue to the regulations invalidated in West 
Virginia.
    Conversely, other commenters argued that the major questions 
doctrine does not apply to the 2024 GHG Emission Standards Rules and 
that the EPA did not explain or show awareness of its change in 
position from what these commenters described as the Agency's detailed 
consideration and rejection of major questions doctrine arguments in 
responding to comments on the 2024 GHG Emission Standards Rules.
    Response: The EPA concludes that the major questions doctrine 
applies to the GHG emissions standards for LD, MD, and HD vehicles that 
the Agency promulgated in 2024, as discussed in the final rule preamble 
and with the Response to Comments document. We acknowledge that the 
Agency previously asserted that the 2024 GHG Emission Standards Rules 
did not violate the major questions doctrine. As explained in this 
final action, however, we now conclude that the arc of regulation since 
2009 evinces a clear march toward requiring widespread adoption of EVs 
by manufactures and American consumers, such that the major questions 
doctrine applies in this respect as well. Accelerating the transition 
to EVs is realistically the only way for many regulated parties to 
comply with the stringent emission standards adopted in 2024. At least 
two auto manufacturers noted the compliance challenges with the current 
standards and cast doubt on their attainability, particularly in light 
of reduced EV demand. As demonstrated by the manufacturers' comments, 
the EPA's GHG emissions standards are difficult to achieve without 
increasing EV production.
    Further, certain events have overtaken aspects of the EPA's 
analysis in its prior rulemakings. For example, the IRA was largely 
overtaken by the OBBB, and Congress has disapproved of the EPA's 
approval of the California waiver under the CRA. The market has also 
changed since the 2024 GHG Emission Standards Rules: EV demand is down, 
gas prices are generally down, and EV prices are generally higher than 
the EPA anticipated.
    In effect, the main compliance option for the 2024 GHG Emission 
Standards Rules was for manufacturers to increase EV production. As 
discussed in greater detail in the Response to Comments document, the 
EPA first incentivized EV production in 2010 and projected that 
compliance with many of its standards in the years since then would 
include surpassing the amount of EVs that manufacturers would have 
produced based on market forces alone. The totality of the EPA's 
actions, when viewed holistically, show a clear path towards a changed 
reality on the ground of more EVs.

C. Eliminating GHG Emissions From Motor Vehicles and Engines Would Be 
Futile

    The EPA is also finalizing as proposed that the Agency should not 
and need not make an endangerment finding under CAA section 202(a)(1) 
when exercising the regulatory authority conferred by that provision 
would have no meaningful impact on the identified dangers. The comments 
and data received in response to the proposed rule, as well as the 
modeling analysis we performed to evaluate these submissions, indicates 
that GHG

[[Page 7729]]

emission standards under CAA section 202(a)(1) have no more than a 
trivial effect on the key changes that the Endangerment Finding 
identified as causing adverse health and welfare impacts. The 
Endangerment Finding avoided confronting this question by severing the 
findings from consideration of the resulting regulations, and we 
focused in subsequent rulemakings on the emissions reductions potential 
of the standards rather than the impacts on health and welfare. Upon 
further review, we conclude that this approach is not consistent with 
the best reading of the statute or the requirement that regulations be 
reasonable and reasonably explained. CAA section 202(a)(1) instructs 
the EPA to regulate in furtherance of public health and welfare, not to 
reduce emissions regardless whether such reductions have any material 
health and welfare impact.
    Specifically, we are finalizing that the potential for emission 
standards to yield more than de minimis gains for health or welfare are 
relevant and should be considered when applying CAA section 202(a)(1). 
We recognized in the Endangerment Finding that the relative 
contribution of GHG emissions to global concentrations from new motor 
vehicles and engines in the U.S. must be more than de minimis to invoke 
our authority but failed to carry this logic through to the remainder 
of the analysis. Background legal principles instruct that de minimis 
concerns are not encompassed within the scope of general statutory 
language, and the ability of regulation to address identified dangers 
is relevant to whether it can be said that that the emissions 
contribute to air pollution that endangers public health or welfare in 
the first instance. As discussed in this subsection, comments and our 
own analysis in response to comments provides that any potential impact 
is de minimis. Even a complete elimination of all GHG emissions from 
new motor vehicles and engines would not address the risks attributed 
to elevated global concentrations of GHGs. We are finalizing that this 
futility further demonstrates that CAA section 202(a)(1) does not, as a 
matter of text and structure, authorize or require the EPA to prescribe 
emission standards for GHG emissions from new motor vehicles and 
engines.
1. Final Rationale
    As discussed in section VI.A of this preamble, the EPA recognizes 
that there are significant uncertainties related to climate modeling 
and recognizes that there is still significant dispute regarding 
climate science and modeling. However, the EPA is utilizing the climate 
modeling provided within this section to help illustrate that, even 
applying the assumptions of these climate models and uncertainties 
contained therein, that removing all GHG emissions from new and 
existing LD, MD, and HD vehicles and engines would not materially 
address the health and welfare dangers attributed to global climate 
change concerns in the Endangerment Finding.
    The EPA utilized the EPA Optimization Model for reducing Emissions 
of GHGs from Automobiles (OMEGA model) to estimate the global GHG 
contributions from U.S. light- and medium duty vehicle engines, and the 
EPA's MOtor Vehicle Emission Simulator (MOVES model) to estimate the 
global contribution from U.S. heavy-duty vehicle engines (Table 
1).\172\ The baseline global emission scenario used for this analysis 
was Shared socioeconomic pathway 2 with a radiative forcing of 4.5 
watts per square meter by 2100 (SSP2-4.5) (Table 1).
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    \172\ Note that these scenarios did not include additional GHG 
emissions from upstream refinery or energy generation processes, nor 
additional emissions of hydrofluorocarbons (HFCs) from vehicle air 
conditioners. The EPA separately regulates emissions from stationary 
sources under statutory authorities outside the scope of this 
rulemaking and, pursuant to separately enacted legislation requiring 
a phase out of HFCs, regulates permissible uses of HFCs.
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    The EPA used the Finite amplitude Impulse Response (v2.2.3) climate 
emulator model (FaIR model) to quantify changes in global 
CO2 concentration and global surface temperature associated 
with the marginal change in emissions from each vehicle scenario 
relative to the baseline. The FaIR model is an open-source emulator 
that reasonably reflects the best available information and science but 
does not include all possible Earth system processes. In FaIR, 
greenhouse gas lifetimes are based on a four-box decay model that is 
also a function of atmospheric and ocean temperatures and emissions of 
other gases. The model accounts for radiative forcing from greenhouse 
gases, aerosols, albedo changes due to land use, solar cycles, and 
volcanic eruptions, given an externally defined time path for each. 
FaIR uses three layers for the ocean component, as heat uptake by the 
ocean controls how fast atmospheric temperature changes after a change 
in radiative forcing. FaIRv2 includes uncertainty estimates that are 
based on a calibration to global climate models, historical 
observations, and parameter uncertainty ranges from the 
Intergovernmental Panel on Climate Change. Uncertainties in climate 
model parameters considered in FaIR, include the sensitivity of climate 
to increases in atmospheric CO2 concentrations, forcing from 
aerosol interactions with radiation and clouds, forcing from black 
carbon on snow, and carbon cycle parameters. All simulations were run 
with historical volcanic and solar cycle forcing, with values held 
constant (solar) after 2022.
    The EPA also used the Building Blocks for Relevant Ice and Climate 
Knowledge (BRICK) model to quantify changes in GSLR associated with the 
marginal temperature changes from each vehicle emissions scenario. 
BRICK is a semi-empirical, open-source model, with four sub-components 
that each model the physical changes in the four major contributors to 
GSLR--glaciers and ice caps, land water storage, and ice sheets, and 
thermal expansion--in response to changes in temperature. Similar to 
FaIR, the BRICK model is also designed with uncertain parameters 
intended to encompass the range of possible GSLR responses to a given 
input of temperature and ocean heat content. Uncertainties in GSLR 
parameters considered in BRICK include contributions from glaciers and 
ice caps and the Antarctic and Greenland ice sheets, as well as ocean 
thermal expansion, and were calibrated through a coupled physical-
statistical framework, using an adaptive Markov chain Monte Carlo 
approach. Reduced complexity models like BRICK and FaIR allow for the 
flexibility to analyze custom scenarios, quantitatively discern changes 
between any scenarios, and characterize uncertainties surrounding 
global change. The National Academies of Sciences, Engineering and 
Medicine (NASEM) in a 2017 report endorsed the use of the FaIR model in 
a 2017 report, and the BRICK model was developed in response to 
recommendation 4-3 from the 2017 NASEM report.\173\
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    \173\ National Academies of Sciences, Engineering, and Medicine. 
2017. Valuing Climate Damages: Updating Estimation of the Social 
Cost of Carbon Dioxide. Washington, DC: The National Academies 
Press. A copy of this report is available in the docket for the 
rulemaking. Available online: https://doi.org/10.17226/24651.
---------------------------------------------------------------------------

    The EPA modeling described above projects that global atmospheric 
concentrations of CO2 will be 420.5 parts per million by 
volume (ppmv) (with an associated 95 percent confidence interval (95 
percent CI) of 419.1-422.1 ppmv) in 2027 and are projected to increase 
in the baseline scenario to a median of 475.4 ppmv by 2050 and 533.6 
ppmv by 2100. The 95 percent CI reflects the uncertainty in the FaIR 
model input parameters and ranges from 461.8-484.3 ppmv in 2050 to

[[Page 7730]]

482.5-565.4 ppmv in the year 2100. Relative to 2027, concentrations of 
CO2 are projected to increase in 2050 and 2100, by 55.0 ppmv 
and 113.3 ppmv, respectively (Table 3). GHG emissions from on-road 
vehicle exhaust in the United States are projected to contribute 2.8 
ppmv (or 5 percent) and 7.4 ppmv (or 7 percent) to this global increase 
by 2050 and 2100, respectively (Table 3).
    The modeled GMST in 2027 is projected to be 1.35 [deg]C above pre-
industrial temperatures, defined as the average between 1850 and 1900 
(Table 4). GMST in the baseline scenario is estimated to increase to 
1.89 [deg]C (95 percent CI: 1.44-2.37 [deg]C) and 2.66 [deg]C (95 
percent CI: 1.86-3.87 [deg]C) above preindustrial temperatures by the 
years 2050 and 2100, respectively. These changes are +0.53 [deg]C (95 
percent CI: 0.32-0.84 [deg]C) and +1.28 [deg]C (95 percent CI: 0.67-
2.42 [deg]C) above 2027 temperatures (Table 5). GHG emissions from on-
road vehicle exhaust in the United States are projected to contribute 
to 0.013 [deg]C (95 percent CI: 0.009-0.017 [deg]C) (or 2 percent) of 
this increase in GMST by 2050 and 0.037 [deg]C (95 percent CI: 0.024-
0.054 [deg]C) (or 3 percent) of this increase by 2100.
    The modeled GSLR is estimated to be 25.8 cm higher in 2027 than 
during the preindustrial era (1850-1900). GSLR in the baseline scenario 
is projected to be 38.9 cm (95 percent CI: 28.0-49.1 cm) by 2050 and 
94.3 cm (95 percent CI: 59.9-157.9 cm) by 2100 relative to 
preindustrial (Table 6). These increases are roughly 12.4 cm (95 
percent CI: 9.4-20.3 cm) and 69.5 cm (95 percent CI: 35.2-132.7 cm) 
higher than 2027 levels (Table 7). GHG emissions from on-road vehicle 
exhaust in the United States contribute to roughly 0.09 cm (0.06-1.06 
cm) (or ~1 percent) of this global increase in 2050 and 1.4 cm (0.39-
4.77 cm) (or 2 percent) of this global increase by 2100.
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    As shown above, the changes in GHG emissions and global GHG 
concentrations by 2050 and 2100 resulting from the complete elimination 
of all GHG emissions from new and existing LD, MD, and HD vehicles in 
the United States would be relatively minor. Importantly, however, 
changes in global emissions rates and global concentrations are not the 
focus of the statutory standard for regulation in CAA section 
202(a)(1). Rather, the statute instructs that the ultimate regulatory 
concern is impacts from air pollution on ``health or welfare.'' The 
appropriate indicator of impact is not emissions or concentrations, but 
health and welfare impacts. Given the speculative, multi-faceted, and 
multi-causal nature of the impacts cited in the Endangerment Finding 
(e.g., hurricanes, floods, heat waves, ocean acidification, etc.), we 
used for purposes of this analysis the projected impacts of the 
elimination of U.S. LD, MD, and HD vehicle emissions on trends in GMST 
and GSLR.
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    \174\ Average annual observed CO2 concentrations in 
2024 were 423 ppmv. Source: Trends in Atmospheric Carbon Dioxide 
(CO2) from: https://gml.noaa.gov/ccgg/trends/global.html.
    \175\ Note that observed data do not exactly correspond with 
that modeled estimates, as the FaIR and BRICK modeling start in 1750 
(or 1850) for estimation of both historical and future projected GHG 
concentrations, temperatures, and GSLR.
    \176\ Uncertainties in GSLR parameters considered in BRICK, 
include but are not limited to sea level rise contributions from 
glaciers and ice caps and the Antarctica and Greenland ice sheets, 
as well as ocean thermal expansion. The calibration of the 10,000 
parameter sets is described in: Rennert, K., Errickson, F., Prest, 
B.C. et al. Comprehensive evidence implies a higher social cost of 
CO2. Nature 610, 687-692 (2022). https://doi.org/10.1038/s41586-022-05224-9.
    \177\ GMST observations in 2024 were 1.55 (1.42-1.68) [deg]C 
relative to 1850-1900 to present from https://wmo.int/publication-series/state-of-global-climate-2024. The uncertainty in observed 
temperatures is due to the uncertainty in temperature before 1900, 
due to the sparsity of observations during that period.
    \178\ Observations of GSLR in 2024 are 22.5 cm relative to pre-
industrial. Source: https://www.climate.gov/news-features/understanding-climate/climate-change-global-sea-level.
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    In this analysis, we reviewed the projected impact on GMST and GSLR 
by applying two important qualifications. First, the projected impacts 
on GMST and GSLR are not themselves the adverse impacts on health and 
welfare relevant for purposes of the analysis. Rather, they are 
imperfect proxies for such adverse impacts, which we are assuming 
without accepting play a causal role in such adverse impacts. We did 
not apply a quantitative discount when analyzing the modeling performed 
for purposes of this final action. Nevertheless, it bears emphasis that 
the projected impacts on GMST and GSLR trends do not translate directly 
to adverse health and welfare impacts and do not account for additional 
factors, including adaptation and mitigation factors, that would 
necessarily inform such impacts. As discussed in section V.A of this 
preamble, the analytical difficulties, uncertainties, and multiple 
causal leaps involved in this exercise are themselves a reason to 
conclude that CAA section 202(a)(1) does not encompass emissions that 
can be said to lead to adverse health and welfare impacts only by 
constructing a global air pollution framework.
    Second, the elimination of GHG emissions from all new and existing 
U.S. LD, MD, and HD vehicles substantially overestimates the impacts of 
the EPA's GHG emission standards. The standards apply only to ``new'' 
vehicles and engines, and fleet turnover (i.e., the transition from 
existing vehicles to new vehicles covered by the standards) generally 
takes more than 20 years.\179\ The most recent GHG emission standards 
finalized in 2024 phased in beginning in MY 2026 and increased in 
stringency through MY 2032 and beyond, meaning the full emissions 
reductions attributable to the standards would not be expected until 
well after 2052. Moreover, despite being the most stringent to date, 
the 2024 standards were projected to reduce GHG emissions by 
approximately 50 percent as compared to the preexisting standards for 
MY 2026 and beyond.\180\ The appropriate discount between the modeled 
scenario (the elimination of all GHG emissions from vehicles) and the 
reductions achieved in practice by EPA GHG emission standards (i.e., 
the difference between the scenario and the likely real-world scenario) 
turns on a variety of factors that are difficult to predict, including 
our regulatory decisions for MY 2032 and beyond, separate regulatory 
influences, and changes to the underlying economics, technologies, and 
consumer preferences. For illustrative purposes, we present below a 
scenario in which EPA GHG emission standards would eliminate an 
additional 50 percent of GHG emissions from LD, MD, and HD vehicles as 
compared to the baseline.
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    \179\ U.S. EPA. ``Population and Activity of Onroad Vehicles in 
MOVES5'' EPA-420-R-24-019, November 2024.
    \180\ For MY 2032 and beyond new motor vehicles, the EPA 
projected that the 2024 GHG emission standards final rules would 
result in a 50 percent reduction in new LD vehicle CO2 
emissions, a 41 percent reduction in new MD vehicle CO2 
emissions, and a 25-60 percent reduction in new HD vehicle 
CO2 emissions (dependent on vehicle category). See 89 FR 
27842, 27908-09 (Apr. 18, 2024); 89 FR 29440, 29451-52 (Apr. 22, 
2024); 89 CFR 27914-915.
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    Under the 50 percent reduction scenario, retaining a GHG emission 
standards program for vehicles and engines would result in a 0.007 
(0.005-0.009) [deg]C impact on projected GMST through 2050 and 0.019 
(0.012-0.027) [deg]C impact on projected GMST through 2100. Retention 
would result in a 0.05 (0.03-0.053) cm impact on projected GSLR from 
2027 to 2050 and 0.7 (0.20-2.39) cm impact on projected GSLR from 2027 
to 2100. Again, this is an illustrative scenario and a rough estimate 
that pairs some analytic tools not intended for this purpose with other 
tools in the literature. As such, it cannot be assumed to translate 
with precision directly to specific adverse health or welfare impacts. 
Note, however, that these figures are themselves likely an 
overestimation of the actual predicted impact of GHG emission standards 
over the relevant time horizon because this illustrative 50 percent 
reduction scenario does not reflect what such standards would 
realistically achieve given technical and statutory constraints.
    Whether viewed in terms of the complete elimination scenario or the 
illustrative 50 percent reduction scenario, these projections lead the 
EPA to determine that GHG emission standards under CAA section 
202(a)(1) have no material impact (i.e., beyond a de minimis level) on 
the global climate change concerns relied upon in the Endangerment 
Finding to justify regulation. This determination leads us to two 
independent conclusions. First, as discussed in section V.A of this 
preamble, the futility of GHG emission standards under CAA section 
202(a)(1) further supports that the best reading of the statute does 
not encompass global climate change concerns within the scope of the 
``air pollution'' that Congress authorized and required the EPA to 
address. And second, as discussed in this section below, the futility 
of GHG emission standards under CAA section 202(a)(1) renders retaining 
such standards unreasonable given the certain and immense costs and 
other direct adverse impacts of the standards.
    Under any reasonable understanding, the predicted impacts of 
eliminating all U.S. GHG emissions from vehicles and engines on GMST 
and GSLR are de minimis. Even without accounting for the difference 
between total elimination under the modeled scenario and emission 
control using GHG standards under the discounted scenario, the 
predicted impacts through 2100 (0.013 [deg]C as shown in Table 5) are 
below the

[[Page 7733]]

range of measurability for GMST and likewise for GSLR (1.4 cm as shown 
in Table 7).\181\ Additionally, as stated previously, GMST variability 
from 2016-2025 was 0.14 [deg]C, which is almost four times greater than 
the GMST change estimated in 2100 from eliminating all U.S. vehicle and 
engine GHG emissions.\182\
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    \181\ See National Oceanic and Atmospheric Administration 
(NOAA), National Centers for Environmental Information, Global 
Surface Temperature Anomalies-Methodology and Uncertainty, 
estimating uncertainty in annual global mean surface temperature of 
approximately 0.05 [deg]C since 1950, increasing to 
0.1-0.2 [deg]C in the late 19th Century. Available at 
https://www.ncei.noaa.gov/access/monitoring/global-temperature-anomalies.
    \182\ National Centers for Environmental Information, Climate at 
a Glance. NOAAGlobalTemp. Available at https://ncei.noaa.gov/access/monitoring/climate-at-a-glance/global/time-series/globe/land_ocean/tavg/ytd/12/1950-2025.
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    Once the figures are reduced to reflect the potential impact of EPA 
GHG emission standards, which only reduce, rather than eliminate, all 
GHG emissions from vehicles and engines for the reasons discussed 
above, the de minimis nature of the impact is even clearer. The reduced 
impact is approximately one percent of the model-projected change in 
GMST for 2050 and 2100.\183\ The reduced impact is much less than one 
percent of the change in GSLR modeled for 2050 and 2100. As discussed 
in section V.A of this preamble, Congress does not include de minimis 
concerns in general statutory language, and agencies need not address 
de minimis concerns where doing so would yield trivial value under the 
statutory scheme.\184\ The general instruction in CAA section 202(a)(1) 
to ``prescribe . . . standards'' for emissions that contribute to air 
pollution which may reasonably be anticipated to endanger public health 
or welfare does not override this background principle, and regulatory 
agencies and courts have consistently viewed impacts of one percent as 
de minimis and therefore not encompassed within general statutory 
language.\185\
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    \183\ For context, the Administrator relied in the Endangerment 
Finding on predictions that global temperature would increase from 
1990 to 2100 between 1.8 to 4.0 [deg]C. 74 FR 66519.
    \184\ See, e.g., UARG, 573 U.S. at 333; Ala. Power, 636 F.2d at 
360-61.
    \185\ See, e.g., UARG, 573 U.S. at 333 (suggesting that an 
appropriate de minimis level of stationary source GHG emissions 
could be substantial in an absolute sense); EME Homer, 572 U.S. 489 
(approving rule that did not require additional emissions reductions 
from States that contributed less than one percent to nonattainment 
in other States); In re Rail Freight Fuel Surcharge Antitrust 
Litig., 934 F.3d 619, 625 (D.C. Cir. 2019) (applying benchmark of 
five-to-six percent for the number of uninjured class members that 
destroy predominance in class certification context); CareFirst of 
Md., Inc. v. First Care, P.C., 434 F.3d 263, 268 (4th Cir. 2006) 
(survey showing two percent consumer confusion de minimis in the 
trademark context); Arent v. Shalala, 70 F.3d 610, 617 (D.C. Cir. 
1995) (accepting 10 percent de minimis threshold in FDA compliance 
regulation).
---------------------------------------------------------------------------

    Relevance to the best reading of CAA section 202(a)(1). In reaching 
this determination, we recognize that CAA section 202(a)(1) authorizes 
preventative regulation that need not fully ameliorate the identified 
harms. But in discussing the statute's preventative nature, the EPA and 
reviewing courts consistently understood that regulation must be 
capable of having at least a material impact on the identified 
danger.\186\ The background legal principles discussed in section V.A 
of this preamble support this reading of the statutory standard.
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    \186\ See, e.g., Ethyl Corp. v. EPA, 541 F.2d 1, 29-32 (D.C. 
Cir. 1976) (en banc) (approving standards for lead content in 
gasoline supported by finding that lead emissions from gasoline were 
a ``significant source'' of total environmental exposure ``that was 
particularly suited to ready reduction'').
---------------------------------------------------------------------------

    The futility determination reached in this final action is 
different in kind from the policy arguments previously addressed in 
Massachusetts and Coalition for Responsible Regulation, which focused 
on the cost-benefit balance of potential regulatory responses and 
general concerns about the most efficient way to regulate in response 
to global climate change concerns. Rather, we conclude that CAA section 
202(a)(1) requires that emission standards be capable of having a 
material impact on the identified danger for the Administrator to 
conclude that the emissions ``contribute'' to air pollution that may 
``reasonably be anticipated'' to endanger public health and welfare. If 
controlling or eliminating the emissions would not materially impact 
the identified danger, the emissions do not ``contribute'' to the air 
pollution. And because the emitted ``air pollutant'' and the ``air 
pollution'' are defined in this context as the ``six well-mixed GHGs,'' 
the air pollution cannot ``reasonably be anticipated'' as endangering 
health or welfare in the CAA section 202(a) context if controlling or 
eliminating all vehicle and engine emissions would have no impact. Put 
another way, the inability of GHG emission standards to have any 
material impact demonstrates that GHG emissions from new vehicles and 
engines do not contribute to air pollution that endangers public health 
or welfare. That determination is relevant to the findings required by 
CAA section 202(a)(1).
    The EPA recognized in the Endangerment Finding that CAA section 
202(a) incorporates de minimis principles, stating that the 
contribution of motor vehicle and engine GHG emissions to the ``air 
pollution'' must be more than trivial. See 74 FR 66506, 66509, 66542-
43. But we avoided consideration of this limitation in the remainder of 
the analysis by severing the endangerment and contribution findings 
from the analysis of responsive regulation. We asserted that requiring 
the Agency to show that control measures ``would prevent at least a 
substantial part of the danger'' would ``be an unworkable 
interpretation, calling for EPA to project out the result of perhaps 
not one, but even several, future rulemakings stretching over perhaps a 
decade or decades.'' 74 FR 66507-08. We further asserted that 
effectiveness would turn not only on CAA section 202(a) regulations, 
but also on ``the larger context of the CAA and perhaps even the global 
context'' based on our belief that all sources must ``do their part'' 
to avoid a collective action problem. 74 FR 66508. In this way, we 
deferred to future agency action any consideration whether regulation 
would have more than a de minimis impact. Upon reviewing multiple 
rounds of CAA section 202(a)(1) GHG emission standard rulemakings 
predicated on the Endangerment Finding, however, we acknowledge that 
the EPA never meaningfully returned to the question. Rather, we focused 
on estimates of GHG emission reductions and, in RIAs not relied upon to 
justify the standards, attempts to monetize such reductions using SCC 
methodology.\187\ That was not consistent with the best reading of the 
statute, which provides that the proper focus is not on the emissions 
themselves, but on the possible dangers to health or welfare.
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    \187\ See, e.g., 89 FR 29440, 29675 (Apr. 22, 2024) (2024 HD GHG 
Emission Standards Rule); 75 FR 25324 (May 7, 2010) (Tailpipe Rule).
---------------------------------------------------------------------------

    Emission standards for criteria pollutants and air toxics have 
markedly different impacts, and a comparison to the GHG emission 
standards is illustrative.\188\ Unlike the GHG emission standards, the 
EPA's criteria pollutant and air toxic standards protect health and 
welfare by reducing emissions of air pollutants that have direct 
effects from local and regional exposure. Moreover, the standards 
achieve health and welfare benefits without relying on further action 
with respect to other sources (i.e., stationary sources) or

[[Page 7734]]

actions by other countries. Whether the EPA regulates criteria 
pollutant and air toxic emissions from power plants, for example, the 
CAA section 202(a) standards materially reduce the health and welfare 
impacts. Importantly, the risk-reduction benefits of those standards 
are material regardless whether other countries reduce emissions of the 
same pollutants.\189\
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    \188\ For example, approximately 45 percent of NOX, 
less than 10 percent of VOCs, and less than 10 percent of 
PM2.5 and PM10 in the United States come from 
the transportation sector. See https://www.epa.gov/transportation-air-pollution-and-climate-change/smog-soot-and-other-air-pollution-transportation.
    \189\ To note, we acknowledge that criteria air pollution does 
come from other countries into the United States and the CAA allows 
for discounting those emissions when determining compliance with the 
NAAQS.
---------------------------------------------------------------------------

    Independent basis for repealing GHG emission standards. Separate 
from the rescission of the Endangerment Finding, the EPA is finalizing 
the futility rationale as a standalone basis for repealing the GHG 
emission standards. Even if the CAA section 202(a)(1) authorized the 
Endangerment Finding as a standalone decision, it would be unreasonable 
and impermissible to retain a regulatory program that imposes immense 
costs while providing no material value in furtherance of a legitimate 
statutory objective. This alternative basis turns on the statutory 
language in CAA section 202(a) more generally, including the cost 
consideration requirements of CAA section 202(a)(2). As the Supreme 
Court explained in Michigan, agencies are bound to consider cost unless 
the statute expressly provides otherwise. Here, where the costs or 
regulation are certain and immense but the health and welfare value of 
regulation are uncertain and de minimis, it is unreasonable to maintain 
the GHG emissions program. For further discussion, see additional 
discussion in the sections of the preamble that follow and the Response 
to Comments document.
2. Summary of Comments and Responses and Updates to the Final Action
    In response to the proposal, the Agency received a number of 
technical comments regarding the proposed futility basis, including 
comments on the impacts of total U.S. GHG emissions and U.S. motor 
vehicle GHG emissions to climate change effects. Multiple commenters 
provided projected changes in global CO2 concentrations and 
global surface temperature changes for the years 2050 and 2100 for a 
range of modeled scenarios. These scenarios included modeled changes 
from the elimination of all U.S. CO2, or elimination of all 
U.S. power sector CO2 emissions (which the commenter 
indicated was of similar magnitude to the emissions from motor 
vehicles), or the elimination of all U.S. motor vehicle GHG emissions. 
Other commenters cited to climate modeling the EPA included in the 
light-duty vehicle GHG 2010 standard setting final rule. In general, 
the commenters utilized the Model for the Assessment of Greenhouse Gas 
Induced Climate Change (MAGICC) model, a model the EPA has used in the 
past. While the scenarios were not identical to the modeling described 
in section V.C.1 of this preamble which the EPA performed for this 
final action,\190\ the EPA finds that in general commenters who 
performed climate modeling projected changes in global surface 
temperature impacts similar to the EPA's modeling. As discussed in 
detail in section V.C.1 of this preamble, the EPA finds the modeled 
projected impacts from the complete elimination of GHG emissions from 
US on-road vehicles to be de minimis, and the impacts from potential 
EPA GHG standards for U.S on-road vehicles, which would not result in a 
complete elimination of GHG emissions, to be even smaller and thus also 
de minimis. The Response to Comments document summarizes the comments 
we received regarding climate modeling projections and our detailed 
responses.
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    \190\ See Memorandum to Docket EPA-HQ-OAR-2025-0194. ``Technical 
Memo on: Temperature, CO2 Concentration, and Sea Level 
Rise Impacts of Greenhouse Gas Emissions from U.S. Motor Vehicles.''
---------------------------------------------------------------------------

VI. Additional Proposed Bases for Rescission of the Endangerment 
Finding and Repeal of GHG Emission Standards the Agency Is Not 
Finalizing at This Time

    In this section, the EPA discusses the alternative bases for 
rescinding the 2009 Endangerment Finding and repealing associated new 
motor vehicle and engine GHG emission standards that we presented for 
comment at proposal but are not finalizing at this time. The discussion 
below is provided in the interests of transparency and public 
engagement and should not be understood as presenting any views or 
conclusions related to the bases for this final action set out in 
section V of this preamble. As explained below and noted where 
appropriate in the Response to Comments document, the comments received 
on these alternative proposed bases are out of scope of this final 
action given our predicate conclusions that we lacked statutory 
authority to issue the Endangerment Finding and cannot retain or 
prescribe GHG emission standards for new motor vehicles and engines in 
response to global climate change concerns under CAA section 202(a)(1) 
and, separately, that the futility of GHG emission standards in 
addressing global climate change concerns renders it unreasonable to 
retain the standards.

A. Climate Science Alternative Basis

    In the proposal, the EPA described an alternative rationale for 
rescinding the 2009 Endangerment Finding and repealing associated GHG 
emission standards for new motor vehicles and engines. Under that 
alternative proposed basis, the EPA stated that even if CAA section 
202(a)(1) could be read to authorize regulation of GHG emissions from 
new motor vehicles and engines in response to global climate change 
concerns, the Administrator would exercise his judgement differently 
today in light of intervening scientific developments and limitations 
and uncertainties in the record for the Endangerment Finding. Although 
the Administrator continues to harbor concerns regarding the scientific 
determinations underlying the Endangerment Finding, the EPA has decided 
not to finalize this scientific alternative rationale at this time. As 
explained in section V of this preamble, the EPA is rescinding the 
Endangerment Finding based on the best reading of CAA section 
202(a)(1), under which the EPA concludes that Congress did not 
authorize the Agency to regulate GHG emissions from new motor vehicles 
and engines in response to global climate change, and, separately, is 
repealing the GHG emission standards for the additional reason that 
futility renders it unreasonable to retain the standards. These legal 
conclusions are sufficient to support rescission of the Endangerment 
Finding and repeal of the related GHG emission standards without the 
additional scientific basis set out at proposal.
    As the EPA does not adopt or rely on the proposed scientific 
alternative rationale in this final action, the Agency does not need 
to, and is not legally required to, respond to comments that address 
that unfinalized alternative. Nevertheless, in the interest of 
transparency and to assist the public in understanding the outcome of 
this rulemaking, the EPA provides the following summary of major themes 
raised by commenters regarding the proposed scientific alternative 
rationale. The EPA offers this summary for informational purposes only. 
The EPA does not (and, given the bases on which it finalizes this 
action, cannot) in this rulemaking resolve the underlying scientific 
debates described below, does not issue a new or revised scientific 
determination under CAA section 202(a)(1), and does not adopt or 
endorse any particular assessment, study, or

[[Page 7735]]

comment as a statement of the Administrator's scientific judgement. The 
descriptions and responses that follow explain how the EPA has 
considered the comments in deciding not to finalize the scientific 
alternative rationale, but they are not necessary to, and do not form 
an independent basis for, the legal conclusions on which this final 
action rests. In light of the conclusions adopted in this final action 
with respect to the best reading of CAA section 202(a)(1) and the EPA's 
authority thereunder, we cannot resolve remaining uncertainty regarding 
these issues in this regulatory context.
    Comments Asking the EPA to Characterize Whether the Science of 
Climate Change is ``Settled'': Several commenters asked the EPA to 
state more clearly whether the Agency views the science of climate 
change as settled or unsettled. Some commenters urged the EPA to state 
that climate science remains unsettled, and that significant 
disagreement persists on key issues related to climate sensitivity, 
extreme events, and projected impacts. Others urged the EPA to state 
that the science is settled to the extent relevant to the Endangerment 
Finding and pointed to statements by scientific organizations and 
assessments that describe strong or ``overwhelming'' consensus 
regarding the reality of climate change and the influence of human 
activities.
    Response: The Administrator continues to harbor concerns regarding 
the scientific analysis underpinning the Endangerment Finding. A core 
tenet of empirical science is that it is falsifiable--that it can 
always be updated or changed in light of new evidence. The scientific 
record contains analyses that regularly reveal new uncertainties, 
challenge old assumptions, propose new interpretations of evidence, and 
reach differing conclusions. Analyses also explicitly question the 
weight that policymakers should place on particular projections or 
impact estimates, due in part to this uncertainty. Commenters generally 
recognized that relevant data is being collected on a continuing basis 
and analyzed against prior projections but drew very different 
conclusions from such data. Similarly, commenters drew very different 
conclusions from statements by scientific organizations that the 
consensus on these issues is strong or ``overwhelming,'' which certain 
commenters took as evidence of certainty and others took as reason to 
question the underlying data and analyses. We recognize the importance 
of these issues and the importance placed on them by many commenters. 
In light of the bases adopted for this final action, however, the EPA 
lacks authority to resolve these issues here for regulatory purposes 
under CAA section 202(a)(1).
    Comments Asserting That Intervening Science No Longer Supports the 
2009 Endangerment Finding: Some commenters supported the proposal's 
description of scientific uncertainty and agreed that the current 
record does not support the assumptions and conclusions of the 
Endangerment Finding. These commenters argued that experience since 
2009 revealed limitations in global and regional climate models, 
including differences between model projections and certain 
observational records and reanalysis in specific regions or time 
periods. These commenters stated that projections of temperature 
change, sea level rise, and some categories of extreme events span wide 
ranges, and they contend that those ranges reduce confidence in the 
magnitude and timing of risks that the Endangerment Finding associated 
with anthropogenic GHG emissions.
    Additionally, one commenter, for example, provides that there is 
significant bias in climate methodology that was relied upon in the 
Endangerment Finding. That commenter specifically provides that 
``mainstream climate research'' has relied on a triply biased 
methodology that runs overheated models with inflated emission 
scenarios and ignores or minimized adaptation. The result, according to 
that commenter, is exaggerating the physical impacts of GHG emissions 
and harmfulness of such impacts.
    Commenters also focused on causation and scale. These commenters 
emphasized that climate change is a global phenomenon and argued that 
GHG emissions from U.S. mobile sources represent a de minimis share of 
global GHG emissions. In their view, the available science does not 
support a sufficiently direct and quantifiable link between incremental 
changes in GHG emissions from U.S. vehicles and specific public health 
or welfare harms in the U.S. These commenters claimed that the 
Endangerment Finding relied too heavily on modeled scenarios and 
synthesis reports and did not fully account for natural variability, 
observational uncertainty, and adaptive capacity.
    Response: The EPA acknowledges that some commenters view 
intervening scientific literature and observational experience as 
weakening the basis they believe underlay the Endangerment Finding. We 
also acknowledge that questions related to model performance, regional 
patterns of change, internal variability, and the magnitude of 
projected impacts will continue to be examined. As provided in this 
section, the existence of these differing approaches and viewpoints 
confirms that climate science, including climate-impact assessments, 
remains an active field of research and assessment rather than a closed 
or static record. Researchers continue to refine observational 
datasets, develop and evaluate models, improve methods for detecting 
and attributing observed changes, and explore alternative ways to 
characterize uncertainty and risk. Assessment bodies periodically 
revisit and synthesize this evolving literature, and authors continue 
to publish analyses that emphasize different aspects of the evidence. 
The EPA therefore views the scientific record as dynamic and subject to 
ongoing refinement, and the Agency does not, in this final action, 
attempt to resolve the scientific or methodological debates reflected 
in that record. In light of the bases adopted for this final action, 
the EPA lacks authority to resolve these issues here for regulatory 
purposes under CAA section 202(a)(1).
    Comments Asserting That Scientific Assessments Since 2009 Have 
Strengthened the Basis for the 2009 Endangerment Finding: Other 
commenters disagreed with the scientific discussion in the proposal and 
with the claim that intervening science no longer supports the 
Endangerment Finding. These commenters emphasized that, in their view, 
major assessment reports completed since 2009, including the 
Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment 
Report and the Fifth National Climate Assessment (NCA5), describe that 
the climate system has warmed; that human activities, particularly GHG 
emissions, have contributed substantially to observed warming since the 
mid-twentieth century; and that climate change already affects a wide 
range of physical, ecological, social, and economic outcomes. 
Commenters pointed to NCA5's finding that climate change is affecting 
every U.S. region and multiple sectors, including health, agriculture, 
infrastructure, and ecosystems, and that risks increase with additional 
emissions. Commenters also cited reports from the National Academies of 
Sciences (NAS), such as Climate Change: Evidence and Causes, and a 2025 
review of GHG emissions and U.S. climate, health, and welfare which 
they describe as concluding that multiple lines of evidence link 
anthropogenic GHG emissions to observed warming and associated risks.

[[Page 7736]]

These commenters argued that, taken together, these assessments 
indicate that the scientific basis for concluding that GHG emissions 
may reasonably be anticipated to endanger public health and welfare has 
strengthened since 2009, not weakened. These commenters contended that 
the proposal downplayed or mischaracterized these assessments by 
emphasizing selected uncertainties without giving sufficient weight to 
their central conclusions.
    Response: The EPA acknowledges that many commenters relied on IPCC, 
NCA5, and NAS reports to argue that mainstream scientific assessments 
continue to support and, in their view, reinforce the types of 
conclusions that informed the Endangerment Finding. The EPA further 
acknowledges that these assessments describe several conclusions, 
including that human influence has warmed the climate system and that 
climate change poses a range of risks to people and the environment.
    At the same time, the EPA recognizes that the scientific record 
does not consist of a single set of results, but instead reflects a 
range of analyses that place different weight on particular datasets, 
models, and impact estimates. Some studies and assessments rely more 
heavily on global climate model ensembles and long-term series of 
surface temperature, ocean heat content, and sea level, while others 
emphasize satellite records, reanalysis products, and shorter-term 
regional observations. Different authors make different methodological 
choices about how to treat internal climate variability, combine 
observational datasets, and evaluate model performance at global, 
regional, or local scales.
    The literature includes a range of results with varied degrees of 
confidence regarding probabilistic outcomes, which in turn may affect 
the weight decision makers should place in particular projections and 
in the quantification of specific climate-related risks. Similarly, 
impact analyses and integrated assessments apply different assumptions 
when translating projected physical changes into estimates of effects 
on health, agriculture, infrastructure, ecosystems, and the broader 
economy. Those analyses vary in their assumptions about population, 
economic growth, land use, technical change, adaptation, and behavioral 
responses. Some studies emphasize the potential for adaptation and 
innovation to reduce harms; others highlight the potential for 
compounding effects, distributional consequences, or low-probability, 
high-impact outcomes. These choices can lead to different estimates of 
the magnitude, timing, and regional distribution of impacts, even when 
starting from similar underlying physical projections.
    Comments on Scientific Uncertainty, Assumptions, and What Remains 
Unknown: Commenters on both sides discussed the nature and implications 
of scientific uncertainty. Commenters who supported rescission on 
scientific grounds highlighted uncertainty in estimates of climate 
sensitivity, the representation of cloud and aerosol processes, 
regional precipitation changes, and how the frequency and intensity of 
specific extreme events may change in particular locations. These 
commenters argued that differences among observational datasets and 
model ensembles at certain scales make it difficult, in their view, to 
quantify reliably the magnitude of future climate change and associated 
impacts.
    Other commenters agreed that uncertainties exist but emphasized 
that major assessments explicitly acknowledge and characterize these 
uncertainties while still reaching robust conclusions about several 
aspects of climate change. These commenters noted that the Global 
Change Research Act directs national assessments to discuss both 
scientific findings and scientific uncertainties, and argued that 
uncertainty often relates to the size, timing, or regional distribution 
of projected changes rather than the direction of change or the 
fundamental influence of GHG emissions on the climate system.
    Commenters from multiple perspectives also discussed uncertainties 
and assumptions in the translation of physical climate changes to 
quantified health and welfare outcomes. These commenters observed that 
impact assessments must make assumptions about future population and 
economic growth, land use, technology, adaptation measures, and human 
behavior. Some commenters argued that such assumptions may overstate 
risks by underestimated adaptation and innovation. Others argued that 
the same assumptions may understate risks because they may not fully 
capture low-probability, high-impact outcomes, compounding effects, or 
distributional consequences.
    Response: The EPA agrees that significant uncertain assumptions 
remain in the scientific record related to climate change and its 
impacts. Climate and impact modeling necessarily involve choices about 
emissions scenarios, socioeconomic pathways, and adaptation responses, 
as well as assumptions about processes within the climate system 
itself. The EPA also recognizes that different scientific bodies and 
authors may draw different inferences from the same underlying data 
when weighing these uncertainties. Major assessments, such as IPCC and 
NCA5, describe many of these uncertainties and present ranges of 
projected outcomes, while still expressing confidence in certain broad 
findings. Other analyses highlighted by commenters place relatively 
greater emphasis on the limits of current models and on the difficulty 
of quantifying net impacts.
    Comments on Ongoing Scientific Debate and Future Assessments, 
Including a Possible 6th National Climate Assessment (NCA6): Several 
commenters asked the EPA to recognize explicitly that scientific 
research and debate about climate change will continue, regardless of 
the outcome of this rulemaking. These commenters pointed to ongoing 
work in universities, Federal and state agencies, and international 
institutions, and noted that the U.S. has historically produced 
periodic NCAs under the Global Change Research Act.
    Some commenters referenced recent developments affecting Federal 
climate assessment activities, including actions that have affected 
contributors and online access to materials related to a future NCA6. 
These commenters argued that even if institutional arrangements change, 
scientific work on climate change will continue in peer reviewed 
literature and independent synthesis efforts. Some commenters urged the 
EPA to defer any change to the Endangerment Finding until after any new 
national or international assessment, while others argued that the 
existence of continuing debate and evolving research supports a 
decision not to rely on the Endangerment Finding.
    In response, the EPA understands that scientific research and 
debate about climate change will continue during and after this 
Administration. Researchers will continue to publish new observations, 
attribution studies, model evaluations, and impact assessments. 
Domestic and international bodies may undertake additional synthesis 
efforts, including any future work related to a NCA6 or comparable 
report.
    Comments on the EPA's use of the Proposed Scientific Alternative: 
Some commenters who opposed the proposed scientific alternative 
requested that if the EPA decides not to finalize that rationale, the 
Agency should make clear that the Agency is not relying on specific 
scientific critiques as a necessary or independent basis for rescinding 
the Endangerment Finding or

[[Page 7737]]

repealing vehicle GHG standards. These commenters expressed concern 
that references in the proposal could be misinterpreted as a new 
negative scientific judgement about climate change and its impacts. 
These commenters asked the EPA to clarify that the Agency is not 
issuing a new scientific determination under CAA section 202(a). Other 
commenters, including some who supported rescission on scientific 
grounds, urged the EPA to retain a version of the scientific 
alternative rationale in the final action to signal ongoing concerns 
about the treatment of uncertainty, model performance, and global 
versus domestic contributions to climate risk. These commenters argued 
that such a discussion would provide context for any future Agency 
considerations of climate-related issues, even if the EPA based this 
particular decision primarily on legal grounds.
    Response: The EPA has considered these comments and, in this final 
action, is not finalizing the alternative climate science rationale and 
is not finalizing new findings by the Administrator with respect to 
global climate change concerns under CAA section 202(a)(1). The EPA 
does not rely on any specific critique of climate science as a 
necessary justification for this action. Given our conclusion that we 
lack legal authority to regulate in response to global climate change 
concerns under CAA section 202(a)(1), it would be unnecessary and 
inappropriate to resolve such questions in this regulatory context. The 
EPA includes this section to summarize major scientific themes 
commenters raised and to acknowledge that scientific research and 
debate about climate change will continue. This discussion does not 
endorse or reject any particular assessment, study, or comment letter 
in the docket with respect to assertions regarding global climate 
change science and has limited its responses to the bases being 
finalized in this final action. The EPA's conclusion in this final 
action is limited to the legal determination that CAA section 202(a) 
does not provide the authority to regulate GHG emissions from new motor 
vehicles or new motor vehicle engines for the purpose of addressing 
global climate change concerns, irrespective of how ongoing scientific 
debates are ultimately resolved.

B. There Is No Requisite Technology for Light- and Medium-Duty Vehicles 
That Meaningfully Addresses the Identified Dangers of the Six ``Well-
Mixed'' GHGs

    As stated in section V.C of this preamble, even if all GHG 
emissions were eliminated from all LD, MD and HD vehicles and engines, 
it would have a de minimis impact on public health or welfare. 
Therefore, there is no requisite control technology for LD and MD 
vehicles and engines that would meaningfully address the potential 
public health or welfare impacts since there is no technology that 
would completely eliminate all GHG emissions from vehicles.
    However, due to the EPA's lack of authority under CAA section 
202(a), the EPA does not believe that it is necessary to finalize this 
alternative basis for repeal. To note, as it relates to setting 
standards under CAA section 202(a)(2), the EPA must take into account 
requisite technology, giving appropriate consideration to the cost of 
compliance.
    We therefore believe it is more appropriate to consider whether 
there is any ``requisite technology'' that could meet the statutory 
requirements when establishing standards than under this regulatory 
action.

C. There Is No Requisite Technology for Heavy-Duty Vehicles That 
Addresses the Identified Dangers of the Six ``Well-Mixed'' GHGs

    As stated in section V.C of this preamble, even if all GHG 
emissions were eliminated from all LD, MD and HD vehicles and engines, 
it would have a de minimis impact on public health or welfare. 
Therefore, there is no requisite control technology for HD vehicles and 
engines that would meaningfully address the potential public health or 
welfare impacts since there is no technology that would completely 
eliminate all GHG emissions from vehicles.
    However, due to the EPA's lack of authority under CAA section 
202(a), the EPA does not believe that it is necessary to finalize this 
alternative basis for repeal. We therefore believe it is more 
appropriate to consider whether there is any ``requisite technology'' 
that could meet the statutory requirements when establishing standards 
than under this regulatory action.

D. More Expensive New Vehicles Prevent Americans From Purchasing New 
Vehicles That Are More Efficient, Safer, and Emit Fewer GHGs

    In the proposal, the Agency described alternative bases that the 
Administrator could consider as rationale for the proposed repeal of 
the GHG standards. One of them was the negative impact that higher 
vehicle prices (from the GHG standards) may have on delaying the 
purchase of safer and lower emitting vehicles. In the proposal, the 
Agency noted that complying with GHG emission standards often requires 
manufacturers to design and install new and more expensive 
technologies, thereby increasing the price of new vehicles and reducing 
consumer demand. More expensive new vehicles are cost prohibitive for 
some consumers, and those consumers are likely to turn to the used 
vehicle market or continue using an older vehicle rather than purchase 
a new vehicle. The Agency stated in the proposal that all other things 
being equal, an increase in the price of new vehicles can result in 
consumers keeping their vehicles for longer periods, delaying the 
purchase of new vehicles, and decreasing the rate at which old vehicles 
in the national fleet are replaced by new vehicles (i.e., fleet 
turnover). Contrary to the goals of the EPA's GHG emission standards 
and the intended purpose of CAA section 202(a), a delay in fleet 
turnover can negatively impact air quality because older vehicles tend 
to emit higher levels of air pollutants, including criteria pollutants 
and hazardous air pollutants, regulated by the EPA.\191\ Slowing fleet 
turnover is of particular concern with respect to the EPA's 2024 GHG 
Emission Standards Rules because of the large increase in vehicle 
technology costs which will likely lead to large increases in purchase 
prices, and the impact battery electric and fuel cell vehicle 
technologies will have on purchasing decisions of consumers (for light-
, medium-, and heavy-duty vehicle buyers). Increased prices and some 
consumers rejecting battery electric and fuel cell vehicle technologies 
may lead consumers to hold on to their existing vehicles longer. 
Vehicles are more likely to emit less air pollution with each 
subsequent model year because of improvements in technology, ordinary 
wear and tear that decreases the effectiveness of installed technology, 
and greater stringency in more recent regulations for criteria 
pollutants and hazardous air pollutants.\192\ The Agency requested 
comment on this proposed alternative basis for the repeal of the 
vehicle and engine GHG standards.
---------------------------------------------------------------------------

    \191\ A discussion of the impact of higher vehicle prices on 
slowing fleet turnover and thus increasing emissions can be found at 
85 FR 24186 and 25039.
    \192\ See 90 FR 36313.
---------------------------------------------------------------------------

    The Agency notes that since the publication of the EPA proposal, 
NHTSA issued a proposal to change the CAFE standards for certain model 
years of vehicles after determining that previous rulemakings 
inappropriately considered alternative fuel technologies and the 
availability of compliance credits, which is prohibited pursuant to 49 
U.S.C. 32902(h). In their proposal,

[[Page 7738]]

NHTSA evaluated its statutory factors in light of current circumstances 
and tentatively concluded that the existing standards exceed those that 
are maximum feasible. In addition, NHTSA conducted detailed modeling of 
the impact of various levels of fuel economy standards on new vehicle 
purchases and the impact on the in-use vehicle fleet.\193\ NHTSA's 
proposal finds that more stringent fuel economy standards lead to 
higher vehicle prices, which in turn reduce vehicle fleet 
turnover.\194\ NHTSA also finds that newer vehicles are safer than 
older vehicles (both for the driver/occupants of the newer vehicles and 
for safety of the in-use fleet overall). NHTSA also finds that newer 
vehicles generally emit lower emissions of certain criteria pollutants, 
depending upon the model year of the vehicle. In addition, in their 
proposal, NHTSA evaluated its statutory factors in light of current 
circumstances and tentatively concluded that the existing standards 
exceed those that are maximum feasible. The Agency received substantial 
supportive and adverse comments on this proposed alternative rationale 
for repeal of the GHG standards. Several comments included technical 
assessments and modeling to support the commenters' views.
---------------------------------------------------------------------------

    \193\ National Highway Traffic Safety Administration. ``Draft 
Technical Support Document The Safer Affordable Fuel-Efficient 
(SAFE) Vehicles Rule III for Model Years 2022 to 2031 Passenger Cars 
and Light Trucks.'' December 2025. Chapter 4.3.
    \194\ A discussion of the impact of higher vehicle prices on 
slowing fleet turnover can be found at 85 FR 24626 (Apr. 30, 2020).
---------------------------------------------------------------------------

    As discussed elsewhere in this preamble, the Agency is repealing 
the GHG standards because we do not have authority to establish such 
standards under the CAA. The EPA is not basing the repeal on the 
proposed alternative rationale described in this section (section VI.D 
of this preamble). For this reason, the Agency has not responded to the 
comments received on this alternative rationale from the proposal.
    Nevertheless, the Agency does believe that when establishing or 
revising emission standards under CAA section 202(a), the Administrator 
may consider the impacts of emission standards on safety, and in some 
cases is required to do so, such as standards established under CAA 
section 202(a)(3)(A).

VII. Repeal of New Motor Vehicle and Engine GHG Emission Standards

    As discussed in sections III, IV, and VI of this preamble, the EPA 
is repealing all GHG emission standards for LD vehicles, MD vehicles, 
HD vehicles, and HD engines. This includes emission standards for the 
subset of four of the six ``well-mixed GHGs'' whose elevated 
concentrations in the upper atmosphere the Endangerment Finding 
identified as the ``air pollution'' in question that are actually 
emitted by such vehicles and engines--CO2, N2O, 
methane, and HFCs--as well as the compliance provisions for the GHG 
standards. These changes apply to all MYs of vehicles and engines, 
including MYs that have completed manufacture prior to the effective 
date of the final action.
    This final action increases flexibility for vehicle manufacturers. 
Manufacturers will have no vehicle technology-mix constraints that 
arise from the EPA GHG standards and will be free to produce a range of 
technologies, including gasoline, diesel, alternative fuels, and plug-
in electric vehicles. Thus, we do not anticipate material compliance 
difficulties on the part of manufacturers in response to this final 
action.
    In section VII.A of this preamble, we discuss the anticipated 
impacts of repealing GHG emission standards under CAA section 202(a)(1) 
on the overall regulatory scheme for parties currently subject to the 
standards. As explained in this preamble section and elsewhere in this 
preamble, we did not reopen for comment or substantively revise any 
emission standards for criteria pollutants or hazardous air pollutants, 
nor did we reopen or substantively revise any regulatory provisions 
related to NHTSA's CAFE standards or the EPA's role in administering 
EPCA and EISA. This final action also does not impact Federal 
preemption for motor vehicle and engine emission standards under CAA 
section 209(a) or under EPCA and EISA, including with respect to GHGs. 
Regardless, whether we prescribe standards for GHG emissions from new 
motor vehicles or engines, CAA section 209(a) continues to apply by its 
own force to preempt State laws, regulations, and causes of action that 
adopt or attempt to enforce any standard relating to the control of 
emissions from new motor vehicles or engines.
    In section VII.B of this preamble, we describe regulatory 
amendments related to the LD and MD vehicle program. In section VII.C 
of this preamble, we describe regulatory amendments related to the HD 
engine and vehicle program. A memorandum submitted to the docket 
includes redline text highlighting changes to the regulations.\195\
---------------------------------------------------------------------------

    \195\ Memorandum to Docket EPA-HQ-OAR-2025-0194, ``Redline 
Version of EPA's Final Regulations for the Rescission of the 
Greenhouse Gas Endangerment Finding and Motor Vehicle Greenhouse Gas 
Emission Standards Under the Clean Air Act.'' February 2026.
---------------------------------------------------------------------------

    The EPA's engine and vehicle programs are codified in Title 40 of 
the CFR. Specifically, the standard-setting parts for light- and 
medium-duty vehicles are located in 40 CFR part 85 and 86. The 
standard-setting part for HD engines is located in 40 CFR part 1036 and 
the standard-setting part for HD vehicles is 40 CFR part 1037. Each 
standard-setting part includes regulations describing emission 
standards and related requirements and compliance provisions for 
certifying engines or vehicles. Consistent with the proposed rule and 
explained in this preamble section and elsewhere in this preamble, the 
EPA is retaining measurement procedures, reporting requirements, and 
credit provisions for the LD program necessary for demonstrating 
compliance with NHTSA's CAFE standards and the EPA's fuel economy 
labeling program to meet our statutory obligations under EPCA and EISA. 
In response to comments on the proposed rule, we are revising the 
proposed approach for HD engines and vehicles subject to NHTSA's fuel-
consumption standards to similarly retain measurement procedures and 
reporting requirements that are necessary for demonstrating compliance 
with NHTSA's standards.
    Further, as explained in this section and elsewhere in this 
preamble, we did not reopen for comment and are not substantively 
revising emission standards or compliance provisions related to 
criteria pollutant exhaust emissions (i.e., NOX, HC, PM, and 
CO), air toxic emissions, or evaporative and refueling emissions.\196\ 
We may consider those issues, as appropriate, in future rulemakings.
---------------------------------------------------------------------------

    \196\ In this rulemaking, NOX, HC, PM, and CO are 
sometimes described collectively as ``criteria pollutants'' because 
they are either criteria pollutants under the CAA or precursors to 
the criteria pollutants ozone and PM.
---------------------------------------------------------------------------

A. Scope and Impacts of Repealing the GHG Emission Standards

    The repeal in this final action is limited to the regulatory 
provisions for GHG emission standards found in 40 CFR parts 85, 86, 
1036, and 1037, with minor conforming adjustments to unrelated emission 
standards for new motor vehicles and engines in 40 CFR parts 600 and 
1039. As detailed in sections VII.B and VII.C of this preamble, this 
final action does not revise emission standards for criteria pollutants 
or air toxics. The EPA may reconsider and propose to revise the 
regulatory provisions for those programs in a separate rulemaking 
action.

[[Page 7739]]

Similarly, we did not reopen for comment or propose to revise 
regulatory provisions necessary for NHTSA's CAFE standards or the EPA's 
co-administration of EPCA and EISA.
    For this reason, the repealed provisions in this final action do 
not impact Federal preemption under EPCA, as amended by EISA, related 
to fuel economy standards. EPCA provides that when ``an average fuel 
economy standard prescribed under this chapter is in effect, a state or 
a political subdivision of a state may not adopt or enforce a law or 
regulation related to fuel economy standards or average fuel economy 
standards for automobiles covered by an average fuel economy standard 
under this chapter'' \197\ unless the standards are identical or apply 
only to vehicles obtained for the use of the state or political 
subdivision.\198\ We reiterate that the EPA did not reopen this issue 
in this rulemaking, as we did not propose to revise regulatory 
provisions necessary for NHTSA's CAFE standards or the EPA's co-
administration of EPCA and EISA. In providing this information for 
better clarity on the scope of the final action, the EPA notes that we 
are not here ``undertak[ing] a serious, substantive reconsideration of 
the existing'' position. Growth Energy v. EPA, 5 F.4th 1, 21 (D.C. Cir. 
2021).
---------------------------------------------------------------------------

    \197\ 49 U.S.C. 32919(a).
    \198\ 49 U.S.C. 32919(b)-(c).
---------------------------------------------------------------------------

    The repealed provisions in this final action also do not impact 
Federal preemption under CAA section 209(a), which provides that ``[n]o 
State or any political subdivision thereof shall adopt or attempt to 
enforce any standard relating to the control of emissions from new 
motor vehicles or new motor vehicle engines subject to this part,'' 
including ``certification,'' ``inspection'' or ``approval'' 
requirements ``relating to the control of emissions from'' such 
vehicles or engines.\199\ Because new motor vehicles and engines that 
have been subject to GHG emission standards remain subject to Title II 
of the CAA, the statute would by its own force continue to preempt 
``any'' State or local law, regulation, or cause of action that adopts 
or attempts to enforce ``any standard relating to the control of 
emissions.'' Relatedly, the CAA continues to preempt Federal common-law 
claims for vehicle and engine emissions because Congress adopted a 
standard for when such emissions rise to the level of regulatory 
concern and ``delegated to EPA the decision whether and how to 
regulate'' such emissions. Am. Elec. Power, 564 U.S. at 426. The CAA 
also continues to preempt state common-law claims and statutes that 
seek to regulate out-of-state emissions, independently of CAA section 
209(a)'s express preemption provision for mobile-source emissions. See 
City of New York v. Chevron Corp., 993 F.3d 81, 98-100 (2d Cir. 2021); 
cf. Int'l Paper Co. v. Ouellette, 479 U.S. 481, 492 (1987). We retain 
our authority to prescribe emission standards for any air pollutant 
that, in the Administrator's judgment, causes or contributes to air 
pollution that may reasonably be anticipated to endanger public health 
or welfare. See the Response to Comments document for more detailed 
comment summaries and responses.
---------------------------------------------------------------------------

    \199\ 42 U.S.C. 7543(a).
---------------------------------------------------------------------------

    The EPA's engine and vehicle programs are codified in Title 40 of 
the CFR. Specifically, the standard-setting parts for light- and 
medium-duty vehicles are located in 40 CFR parts 85 and 86. The 
standard-setting part for HD engines is located in 40 CFR part 1036 and 
the standard-setting part for HD vehicles is 40 CFR part 1037. Each 
standard-setting part includes regulations describing emission 
standards and related requirements and compliance provisions for 
certifying engines or vehicles.

B. Light- and Medium-Duty Vehicle GHG Program

    Section VII.B.1 of this preamble provides background on the EPA's 
LD and MD vehicle GHG emission programs. In general, through a series 
of rulemakings beginning with MY 2010 for LD vehicles and MY 2014 for 
MD vehicles, the EPA increased the stringency of the GHG standards for 
these vehicles over time, in particular the CO2 standard. 
The remainder of section VII.B of this preamble summarizes the comments 
received, and describes the changes to the LD and MD vehicle GHG 
regulations after considering those comments.
1. Background on the Light- and Medium-Duty Vehicle GHG Program
    In 2010, the EPA relied on the Endangerment Finding to adopt the 
first GHG emission standards for passenger cars and light trucks for 
MYs 2012 through 2016 in a joint rulemaking with NHTSA.\200\ In 2012, 
the EPA and NHTSA adopted another set of GHG standards (issued by the 
EPA) and fuel economy standards (issued by NHTSA) for passenger cars 
and light trucks for MYs 2017 and later in a joint rulemaking.\201\ In 
2020, the EPA and NHTSA revised the standards that had previously been 
adopted and extended them for MYs 2021 through 2026.\202\ In 2021, we 
further revised GHG standards for passenger cars and light trucks for 
MYs 2023 through 2026.\203\ For MD vehicles, we initially adopted GHG 
standards as part of the Phase 1 and Phase 2 HD GHG standards. In 2024, 
we adopted new standards for passenger cars, light trucks, and MD 
vehicles starting in MY 2027, effectively combining standards that had 
previously been maintained separately.\204\
---------------------------------------------------------------------------

    \200\ 75 FR 25324 (May 7, 2010).
    \201\ 77 FR 62624 (Oct. 15, 2012).
    \202\ 85 FR 24174 (Apr. 30, 2020).
    \203\ 86 FR 74434 (Dec. 30, 2021).
    \204\ 89 FR 27842 (Apr. 18, 2024).
---------------------------------------------------------------------------

    The EPA has also taken various actions to comply with statutory 
obligations under EPCA and EISA. Enacted in 1975, EPCA requires NHTSA 
to establish a regulatory program for motor vehicle fuel economy (now 
known as CAFE standards) and requires the EPA to establish measurement 
procedures, data collection procedures, and rules for calculating 
average fuel economy values in support of NHTSA's CAFE standards. In 
2007, Congress amended EPCA by enacting EISA, which required continuing 
increases in the stringency of CAFE standards for passenger cars and 
light trucks through MY 2020. EISA also authorized new fuel consumption 
standards for MD vehicles and HD engines and vehicles.\205\ Those 
standards, and the EPA's HD engine and vehicle GHG programs, are 
detailed in section VII.C of this preamble.
---------------------------------------------------------------------------

    \205\ 49 U.S.C. 32902(k).
---------------------------------------------------------------------------

    To comply with EPCA and EISA, the EPA adopted regulations for fuel 
economy measurements, calculations, and reporting under 40 CFR part 
600. The regulation at 40 CFR part 600 now includes additional 
provisions for measuring, calculating, and reporting fuel consumption 
values for MD vehicles. This regulatory structure was designed to 
maximize efficiency within the Federal government and minimize the 
burden on the engine and vehicle manufacturers by centralizing data 
submission. We share information with NHTSA as needed to support 
implementation of NHTSA's fuel economy and consumption standards.
2. Summary of Comments and Updates to the Light- and Medium-Duty 
Programs
    Most comments related to GHG standards for LD and MD vehicles were 
focused on the proposed rescission of the Endangerment Finding and 
repeal of the GHG standards. Manufacturers suggested in comments that 
the EPA establish or determine that the model

[[Page 7740]]

year 2027 and later GHG standards in 40 CFR 86.1818-12 and 86.1819-14 
are not appropriate, even if those standards are removed in this final 
action. The commenters suggested making such a determination to prevent 
future rulemaking action that would simply restore the standards as 
originally adopted. The EPA is removing the GHG emission standards for 
the reasons described in sections II, IV, and VI of this preamble. 
Because we are finalizing the conclusion that the EPA lacks authority 
to prescribe GHG emission standards in response to global climate 
change concerns under CAA section 202(a)(1), we are not putting in 
place alternative GHG emission standards.
    Commenters also correctly identified several additional amendments 
to remove detailed regulatory provisions that become obsolete in the 
absence of GHG standards. We have amended the regulation to incorporate 
the suggested amendments as noted in the following section VII.B.3 of 
this preamble. See the Response to Comments document for more detailed 
summaries of and responses to comments related to specific LD and MD 
vehicle GHG regulations.
3. Changes to the Light- and Medium-Duty Vehicle GHG Regulations
    The EPA's LD and MD vehicle emission regulations are spread across 
three CFR parts. 40 CFR part 85 includes various general compliance 
provisions for both criteria pollutant and GHG emissions. Many of those 
criteria pollutant provisions apply equally to highway motorcycles (but 
not for GHG emissions, as there are no EPA GHG requirements under 40 
CFR part 85 for motorcycles). 40 CFR part 86 includes emission 
standards and certification provisions for both criteria pollutant and 
GHG emissions. 40 CFR part 600 includes measurement and reporting 
procedures related to fuel economy and GHG standards and to fuel 
economy labeling.
    In the following preamble subsections, we describe the changes in 
this final action to remove and amend specific portions of each of 
these regulatory parts. The general approach is to remove the MY 2012 
and later GHG emission standards for passenger cars and light trucks 
and the MY 2014 and later GHG emission standards for MD vehicles. We 
are also removing the testing and reporting requirements associated 
with the GHG emission standards. In keeping with our obligations under 
EPCA, as noted in section VII.B.1 of this preamble, we are not removing 
the testing and reporting requirements related to CAFE standards for 
passenger cars and light trucks. We are similarly preserving the 
testing and reporting provisions related to NHTSA's fuel-consumption 
standards for MD vehicles.
a. 40 CFR Part 85--Compliance Provisions for Light- and Medium-Duty 
Vehicles
    This final action amends 40 CFR part 85 to remove all references to 
GHG emission standards and related provisions while retaining 
provisions that support our criteria pollutant emission program. In 
this preamble subsection, we describe several amendments that are 
necessary to remove GHG-related provisions from 40 CFR part 85 while 
ensuring that criteria pollutant emission standards are not 
substantively impacted. Table 8 provides a summary of amendments to 40 
CFR part 85.
[GRAPHIC] [TIFF OMITTED] TR18FE26.010

    The regulations at 40 CFR part 85, subpart F, provide an exemption 
from the general tampering prohibition for clean alternative fuel 
conversions. Specifically, the regulations describe how anyone 
modifying an in-use vehicle to run a different fuel can demonstrate 
that the fuel conversion maintains a level of emission control that 
qualifies them for an exemption from the tampering prohibition. This 
exemption generally allows for modifying vehicles already certified to 
emission standards in a way that does not cause the modified vehicle to 
exceed the emission standards that apply for the certified vehicle. The 
demonstration applies for both criteria and GHG emissions. We are 
amending 40 CFR 85.525 by removing the requirement to demonstrate 
compliance with GHG emissions. Program requirements related to criteria 
exhaust, evaporative, and refueling emissions and onboard diagnostics 
remain unchanged.
    The regulation at 40 CFR 85.1515 describes the standards that apply 
for Independent Commercial Importers in their practice of importing 
used vehicles. We are only removing the provision that disallowed 
generation and use of GHG emission credits. We note further that the 
regulation requires Independent Commercial Importers to meet all the 
standards that apply under 40 CFR part 86. With the other changes 
described in this action, the removal of GHG standards from 40 CFR part 
86, subpart S, applies equally to imported vehicles. Imported vehicles 
continue to be subject to criteria exhaust, evaporative, and refueling 
emission standards and requirements for onboard diagnostics as 
specified in 40 CFR part 86, subpart S.
    We are revising the recall-related instructions for remedial plans 
and consumer notification in 40 CFR 85.1803 and 85.1805 to remove a 
reference to 40 CFR 86.1865-12(j)(3), which we are removing in this 
action. The referenced paragraph relates to recall provisions for 
vehicles that do not comply with GHG standards. We are also revising 
definitions of ``Emission-related defect'' and ``Voluntary emissions 
recall'' in 40 CFR 85.1902 where those definitions describe how 
manufacturers must report GHG-related defects differently than defects 
related to criteria pollutant emission standards.

[[Page 7741]]

    Finally, we proposed to amend the warranty provisions for specified 
major emission control components in 40 CFR 85.2103 by removing the 
reference to batteries serving as a Renewable Energy Storage System 
(RESS) for electric vehicles and plug-in hybrid electric vehicles, 
along with all components needed to charge the system, store energy, 
and transmit power to move the vehicle. Some commenters supported this 
proposed change. Other commenters noted that RESS provisions are not 
limited to greenhouse gas emissions and that the Agency specifically 
connected the warranty provisions to its nonmethane organic gases and 
oxides of nitrogen (NMOG+NOX) standards in the 2024 LD and 
MD Multi-Pollutant Emission Standards Rule.\206\ Considering the 
connection to the EPA criteria pollutant program, which is out of scope 
of this rulemaking, we are not taking final action at this time on the 
proposal to remove batteries serving as a RESS for electric vehicles 
and plug-in hybrid electric vehicles from the list of specified major 
emission control components in 40 CFR 85.2103(d)(1). We may consider 
revisions in a future criteria pollutant rule. Note that we are 
nevertheless finalizing the proposed change to remove 40 CFR 
85.2103(d)(3), which established the newly required battery monitor as 
the basis for making battery-related warranty claims; since we are 
removing the requirement to install these dashboard-mounted battery 
monitors in this rulemaking, warranty implementation will necessarily 
proceed without the benefit of information from the battery monitor.
---------------------------------------------------------------------------

    \206\ 89 FR 27965 (Apr. 18, 2024).
---------------------------------------------------------------------------

b. 40 CFR Part 86--Emission Standards and Certification Requirements 
for Light- and Medium-Duty Vehicles
    In general, we are amending 40 CFR part 86 to remove all GHG 
emission standards, references to such standards, and related 
provisions while retaining provisions that support our criteria 
pollutant emission program. In this preamble subsection, we describe 
several amendments that are necessary to remove GHG-related provisions 
from 40 CFR part 86 while ensuring that criteria pollutant emission 
standards are not substantively impacted. Table 9 provides a summary of 
the amendments to 40 CFR part 86.
[GRAPHIC] [TIFF OMITTED] TR18FE26.011

    We are amending the list of materials incorporated by reference in 
40 CFR 86.1 by removing material that is referenced only in regulations 
that we are removing in this final action.
    We are amending the applicability statements in 40 CFR 86.1801-12 
by removing references to GHG standards and related compliance 
provisions. We are also removing the instruction related to work factor 
for vehicles above 14,000 pounds gross vehicle weight rating (GVWR) at 
40 CFR 86.1801-12(a)(3) since that is meaningful only in the context of 
GHG standards. We adopted the work-factor provision in a 2016 final 
rule as a means of limiting the extent to which manufacturers would 
certify those larger HD vehicles in test groups along with chassis-
certified MD vehicles.\207\ Removing the instruction to calculate GHG 
standards based on a work factor appropriate for MD vehicles, without 
other compensating changes, could lead to a greater number of HD 
vehicles certified as MD vehicles. The work-factor provision was 
adopted as a means of addressing competing concerns from different 
manufacturers. As a result, we are limiting this provision to HD 
vehicles with a maximum value of 19,500 pounds GVWR. We believe this 
limitation is the best way to maintain a consistent approach for 
certifying affected vehicles.
---------------------------------------------------------------------------

    \207\ 81 FR 73478 (Oct. 25, 2016).
---------------------------------------------------------------------------

    We are amending the definitions in 40 CFR 86.1803-01 by removing 
several defined terms that are used only in regulatory provisions that 
we are removing in this final action. This includes removing the 
definition of ``configuration''; while this definition is no longer 
needed, we are retaining the slightly different definition of ``vehicle 
configuration,'' since that definition is needed to support standards 
related to criteria pollutants. We are accordingly amending several 
references across 40 CFR part 86, subpart S, to change from a generic 
reference to ``configuration'' and replace it with the specific 
reference to ``vehicle configuration.'' We are also amending 40 CFR 
86.1803-01 by adding a definition for ``work factor'' that is 
consistent with the definition that is embedded in 40 CFR 86.1819-14. 
We adopted the definition of ``work factor'' in 40 CFR 86.1819-14 
primarily as a means of accounting for specific vehicle characteristics 
in establishing GHG emission standards for MD vehicles. We are removing 
all of 40 CFR 86.1819-14 as described below. However, we are keeping 
the definition of work factor to support the definition

[[Page 7742]]

of ``medium-duty passenger vehicle,'' which relies on the work factor 
concept to categorize vehicles for applying criteria pollutant emission 
standards.
    We are amending 40 CFR 86.1803-01 and 86.1809-12 by removing 
references to the air conditioning efficiency test as part of the 
consideration for determining what is a defeat device. We are 
eliminating the air conditioning efficiency test from the EPA 
certification program because it has been used only to generate GHG 
credits. Note that we are not removing the air conditioning efficiency 
credit provisions and measurement procedures from 40 CFR 86.1868-12 and 
1066.845, which are used by manufacturers for compliance with fuel 
economy standards as described in 40 CFR 600.510-12(c)(3). If in the 
future NHTSA changes the fuel economy standards to no longer reference 
air conditioning efficiency credits, we intend to remove those 
provisions from 40 CFR 600.513 if they become obsolete.
    We are amending useful life specifications in 40 CFR 86.1805-12 and 
86.1805-17 by removing references to useful life for GHG standards. 
Useful life for all criteria exhaust, evaporative, and refueling 
emission standards and onboard diagnostics remain unchanged.
    In response to public comments, we are amending 40 CFR 86.1806-27 
to clarify we are excluding certain information items identified in 13 
CCR 1968.2 because they are related to GHG emission standards.
    We are amending labeling requirements in 40 CFR 86.1807-01 by 
removing the requirement for battery electric vehicles (BEVs) and plug-
in hybrid electric vehicles (PHEVs) to identify monitor family and 
battery durability family on the vehicle emission control information 
label. We are removing the battery monitoring and battery durability 
requirements in 40 CFR 86.1815-27 and therefore no longer need to 
include this family information as part of the certification process.
    We are amending 40 CFR 86.1810-09(f)(2) by removing references to 
GHG emission standards. Manufacturer requirements to comply with 
altitude-related demonstration requirements for vehicles subject to the 
cold temperature standards for nonmethane hydrocarbon emissions remain 
unchanged.
    We are amending 40 CFR 86.1810-17(j) by removing references to GHG 
emission standards. Small-volume manufacturers that modify a vehicle 
already certified by a different company must continue to meet other 
requirements as specified, such as those related to criteria exhaust, 
evaporative, and refueling emissions and onboard diagnostics.
    We are amending 40 CFR 86.1811-17, 86.1811-27, and 86.1816-18 by 
removing references to GHG emission standards. We are not otherwise 
changing these sections, which establish criteria exhaust emission 
standards for LD and MD vehicles.
    We are removing 40 CFR 86.1815-27, as proposed. We adopted this 
section to establish battery monitoring and battery durability 
requirements for BEVs and PHEVs. Since the earliest battery monitoring 
and battery durability requirements were scheduled to start in MY 2027, 
removing those requirements involves no immediate transition to 
discontinue compliance for certified vehicles.
    We are removing 40 CFR 86.1818-12 and 86.1819-14. These sections 
described the GHG standards and implementing provisions for MY 2010 and 
later LD vehicles and for MY 2014 and later MD vehicles. We are 
discontinuing the requirement to demonstrate compliance with these GHG 
standards and note that this discontinuation applies as of the 
effective date of the final action. Manufacturers need not amend 
existing certificates for ongoing production for the current MY. 
Manufacturers will in any case not need to submit credit reports at the 
end of the current MY to demonstrate compliance with the fleet average 
CO2 standards.
    We are amending test group specifications in 40 CFR 86.1823-08 by 
removing durability demonstration requirements related to GHG emission 
standards.
    We are amending the provisions for establishing test groups in 40 
CFR 86.1827-01 by removing the reference to CO2 emission 
standards.
    We are amending testing specifications in 40 CFR 86.1829-15 by 
removing references to battery durability requirements and GHG emission 
standards, except where needed to account for emission measurements 
related to fuel economy labeling.
    We are amending the compliance provisions 40 CFR 86.1835-01, 
86.1838-01, 86.1841-01, 86.1848-10, and 86.1854-12 by removing 
references to GHG emission standards.
    We are removing the description of battery monitor families and 
battery durability families and other GHG-related items from the 
reporting requirements in 40 CFR 86.1844-01.
    We are amending carryover testing provisions in 40 CFR 86.1839-01 
by removing references to accuracy requirements for battery monitoring 
for electric vehicles (EVs), which included battery electric vehicles 
and fuel cell electric vehicles, and PHEVs.
    We are amending instructions for the application for certification 
in 40 CFR 86.1844-01 by removing references to refrigerant leakage 
rates and GHG emission standards.
    We are amending in-use testing requirements in 40 CFR 86.1845-04 
and 86.1846-01 by removing references to testing GHG emissions and 
testing related to battery monitor accuracy and battery durability for 
EVs and PHEVs. We are also amending 40 CFR 86.1845-04 by changing the 
nomenclature for the reference brake-specific CO2 emission 
rate needed to perform calculations related to in-use testing for 
engines certified under 40 CFR 1036.635 for use in vehicles with high 
towing capacity.
    We are removing requirements for battery durability testing and 
other GHG-related provisions in 40 CFR 86.1847-01 and 86.1848-10.
    We are amending the credit provisions for criteria exhaust and 
evaporative emissions in 40 CFR 86.1861-17 by referencing the credit 
provisions in 40 CFR part 1036, subpart H, instead of 40 CFR part 1037, 
subpart H. We are removing several credit provisions in 40 CFR part 
1037, subpart H, in this rule because they were needed only in relation 
to the GHG standards in 40 CFR part 1037, which we are removing in this 
rule. The referenced credit provisions in 40 CFR part 1037, subpart H, 
are equivalent to the analogous credit provisions in 40 CFR part 1036, 
subpart H. While the final action preserves some credit-related 
provisions in 40 CFR part 1037 in support of NHTSA's fuel consumption 
standards, we are finalizing as proposed the updated references to 40 
CFR part 1036 to ensure the complete subpart of the EPA averaging, 
banking, and trading provisions can continue to apply under 40 CFR 
86.1861-17. We are also amending 40 CFR 86.1861-17 by removing a 
reference to 40 CFR 86.1865-12(j)(3), which we are removing in this 
action.
    We are removing 40 CFR 86.1865-12, which described the emission 
credit provisions related to the fleet average GHG standards. See the 
discussion related to 40 CFR 86.1818-12 and 86.1819-14 for the 
transition to discontinued GHG standards for the MY currently in 
production for the year when the final action is effective. More 
specifically, we will no longer recognize manufacturers' positive or 
negative GHG credit balances as of the effective date of the final 
action. Note also that we are removing 40 CFR 86.1865-12(j)(3), which 
describes recall provisions for

[[Page 7743]]

vehicles that do not comply with GHG standards. We recognize that a 
credit-based approach to recall is no longer appropriate without a GHG 
credit program. In the context of NMOG+NOX standards, recall 
would involve identifying and correcting a vehicle defect to bring 
vehicles into compliance with standards. Accordingly, we are removing 
the provisions describing a credit-based remedy for noncompliance.
    We are removing 40 CFR 86.1866-12, 86.1867-12, and 86.1867-31. 
These sections describe GHG credit programs for advanced technology and 
air conditioning leakage that served only in relation to the GHG 
standards that we are removing in this action.
    We are amending the credit provisions for air conditioning 
efficiency and for off-cycle technologies in 40 CFR 86.1868-12 and 
86.1869-12 by removing references to the fleet average GHG standards 
and adjusting the description to clarify that these credit provisions 
continue to serve as inputs for calculating fuel consumption 
improvement values and average fuel economy for LD program vehicles 
under 40 CFR 600.510-12. Note that the 2024 LD and MD Multi-Pollutant 
Emission Standards Rule included several changes to narrow the 
availability of air conditioning efficiency and off-cycle credits; 
those changes continue to apply in the context of fuel consumption 
improvement values and average fuel economy.\208\
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    \208\ 89 FR 27842 (Apr. 18, 2024).
---------------------------------------------------------------------------

    We are removing 40 CFR 86.1870-12, which described a GHG credit 
program for full-size pickup trucks with hybrid technology. Those GHG 
credits were also used for calculating fuel consumption improvement 
values and average fuel economy for LD program vehicles under 40 CFR 
600.510-12. However, we amended those credit provisions in the 2021 
final rule to establish MY 2024 as the last year that manufacturers 
could generate those credits.\209\ Because those credits are already 
discontinued for purposes of demonstrating compliance with EPA emission 
standards, manufacturers can no longer use those provisions to create 
fuel consumption improvement values under 40 CFR part 600.
---------------------------------------------------------------------------

    \209\ 86 FR 74434 (Dec. 30, 2021).
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c. 40 CFR part 600--Requirements Related to Fuel Economy for Light- and 
Medium-Duty Vehicles
    In general, we are amending 40 CFR part 600 to remove all 
references to GHG emission standards and related provisions while 
retaining provisions that support compliance with CAFE standards and 
fuel economy labeling for passenger cars and light trucks. In the 
remainder of this preamble subsection, we describe several amendments 
needed to remove GHG-related provisions from 40 CFR part 600 without 
affecting provisions related to CAFE standards and fuel economy 
labeling. Table 10 provides a summary of the regulations we are either 
removing from or amending in 40 CFR part 600.
[GRAPHIC] [TIFF OMITTED] TR18FE26.012

    We are amending the applicability statements in 40 CFR 600.001 by 
removing references to carbon-related exhaust emissions and fleet 
average CO2 standards. We are also revising the reference in 
40 CFR 600.001(a) to MD vehicles because the testing and reporting 
provisions remain only to support fuel-consumption standards that apply 
under 49 CFR part 535. Testing provisions will remain to describe (1) 
how passenger automobiles and light trucks (including MD passenger 
vehicles) must meet fuel economy standards, (2) how manufacturers must 
prepare fuel economy labels for those vehicles, and (3) how MD vehicles 
must meet fuel-consumption standards.
    We are amending the definitions in 40 CFR 600.002 by removing the 
reference to fleet average CO2 standards. We are also 
amending several definitions related to MD vehicles to preserve content 
referenced in 40 CFR 86.1819-14, which we are removing in this final 
action. We are amending these definitions to support NHTSA's 
implementation of fuel-consumption standards for MD vehicles.
    We are amending the definition of Medium-Duty Passenger Vehicle 
(MDPVFE) for purposes of fuel economy testing and reporting 
in 40 CFR 600.002 to align with the clarified definition published by 
NHTSA at 49 CFR 523.2 (89 FR 52945, June 24, 2024). Aligning these 
definitions is necessary to ensure the EPA's test procedures are 
properly applied to vehicles covered by fuel economy standards and 
labeling requirements.
    As described for 40 CFR 86.1803-01, we are amending several 
references across 40 CFR part 600 to change from a generic reference to 
``configuration'' and replace it with the specific reference to 
``vehicle configuration.''
    We are amending the information requirements in 40 CFR 600.006 
through 600.010 by removing references to carbon-related exhaust 
emissions, GHG

[[Page 7744]]

emission standards, and reporting GHG-related information generally.
    We are amending the testing overview in 40 CFR 600.101 and 600.111-
08 by removing references to carbon-related exhaust emissions and fleet 
average CO2 emissions.
    We are amending the emission calculations in 40 CFR 600.113-12 by 
removing references to carbon-related exhaust emissions and other GHG 
emissions.
    We are amending the interim testing provisions in 40 CFR 600.117 by 
removing paragraph (a)(5) since we are discontinuing GHG testing with 
in-use vehicles under 40 CFR 86.1845-04. We are also revising 
paragraphs (a)(6) and (b) to clarify that manufacturers do not adjust 
measured fuel economy values to account for fuel effects, whether they 
test with E0 or E10 gasoline.
    We are amending the testing, calculation, and reporting 
specifications in 40 CFR 600.116-12, 600.507-12, 600.509-12, and 
600.510-12 by removing references to carbon-related exhaust emissions. 
We are also removing GHG-specific utility factors in 40 CFR 600.116-12. 
We note that calculations related to off-cycle credits in 40 CFR 
600.510-12(c)(3)(ii) continue to rely on carbon-related exhaust 
emissions as specified in 40 CFR 86.1869-12.
    We are amending the reporting requirements in 40 CFR 600.512-12 by 
removing references to carbon-related exhaust emissions. This includes 
amending 40 CFR 600.512-12(c)(5)(i) to explain that the purpose for 
performing the calculations in 40 CFR 600.510-12(c)(3) is to support 
credit calculations for fuel economy improvement factors, rather than 
demonstrating compliance with the fleet average standard for carbon-
related exhaust emissions. We are moving the existing reporting 
requirement for emission credits related to fuel consumption 
improvement values from 40 CFR 86.1865-12(l)(2)(iii), which we are 
removing in this final action, to 40 CFR 600.512-12(c)(3) to preserve 
the existing provisions needed for fuel economy reporting. We are also 
removing the reporting requirements in 40 CFR 600.514-12, which are 
solely related to GHG emissions.

C. Heavy-Duty Engine and Vehicle GHG Program

    This section VII.C includes background on the EPA's HD GHG emission 
program and describes changes to the engine-based GHG regulations and 
the vehicle-based GHG regulations we are finalizing after considering 
comments.
1. Background on the Heavy-Duty Engine and Vehicle GHG Program
    The EPA promulgated new GHG emission standards for HD engines and 
vehicles in three separate rulemakings. In 2011, the EPA established 
the first GHG standards for MY 2014 and later HD engines and vehicles 
in an action titled ``Greenhouse Gas Emissions and Fuel Efficiency 
Standards for Medium- and Heavy-Duty Engines and Vehicles'' (HD GHG 
Phase 1).\210\ In 2016, the EPA set new GHG standards for MY 2021 and 
later HD engines and vehicles in an action titled ``Greenhouse Gas 
Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty 
Engines and Vehicles--Phase 2'' (HD GHG Phase 2).\211\ Most recently, 
in 2024, the EPA finalized the 2024 HD GHG Emission Standards Rule, 
which set new CO2 emission standards for MY 2032 and later 
HD vehicles that phase in starting as early MY 2027 for certain vehicle 
categories.\212\ The phase-in revises MY 2027 GHG standards that were 
established previously under the EPA's HD GHG Phase 2 rulemaking.\213\
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    \210\ 76 FR 57106 (Sept. 15, 2011).
    \211\ 81 FR 73478 (Oct. 25, 2016).
    \212\ See 89 FR 29559-61 (Apr. 22, 2024).
    \213\ 89 FR 29440 (Apr. 22, 2024).
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    The EPA and NHTSA jointly issued the HD GHG Phase 1 and HD GHG 
Phase 2 rulemakings covering HD GHG emission and fuel efficiency 
standards. The EPA set GHG emission standards under CAA section 202(a), 
and NHTSA set fuel consumption standards under EISA.\214\ The EPA and 
NHTSA programs were harmonized through MY 2026; however, NHTSA did not 
adopt changes in fuel consumption standards corresponding to the EPA's 
HD GHG Phase 3 standards. As a result, the CO2 emission and 
fuel consumption standards diverged in MY 2027 and later.
---------------------------------------------------------------------------

    \214\ 49 U.S.C. 32902(k).
---------------------------------------------------------------------------

    The EPA's regulations include the test procedures along with a 
certification and compliance program, which is led by the EPA. As noted 
previously, this regulatory structure was designed to maximize 
efficiency within the Federal government and minimize the burden on the 
engine and vehicle manufacturers by centralizing data submission. 
Manufacturers submit data and information to the EPA and the EPA, in 
turn, shares information with NHTSA as needed to support NHTSA's 
implementation of its fuel consumption standards.\215\
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    \215\ See 49 CFR 535.8; 40 CFR 1036.755 and 1037.755.
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2. Summary of Comments and Updates to the Heavy-Duty Engine and Vehicle 
Programs
    Engine and vehicle manufacturers, trade associations for the 
manufacturers and suppliers, and other special interest groups 
commented specifically on the regulatory updates the EPA proposed for 
the HD engine and vehicle GHG programs. Many of these commenters raised 
a common concern that informed the approach we are finalizing for our 
HD engine and vehicle regulations: the HD industry's request to ensure 
no disruption to NHTSA's fuel efficiency program. Section VII.C.2 of 
this preamble summarizes comments related to that concern and describes 
the approach we are broadly applying to the regulations after 
considering those comments. We note that several commenters suggested 
more specific changes to regulatory sections we proposed to revise or 
remove, and some commenters identified additional regulatory sections 
we should consider revising or removing. In section VII.C.3 of this 
preamble, we summarize the comments related to specific regulatory text 
and changes we are finalizing after considering those comments. See the 
Response to Comments document for more detailed summaries of and 
responses to comments related to specific HD engine and vehicle GHG 
regulations.
    Commenters responded to the EPA's request for comment on the 
relationship between the EPA's and NHTSA's regulations. As stated at 
proposal, NHTSA's medium- and heavy-duty fuel efficiency regulations in 
49 CFR part 535 refer to several sections in the EPA's 40 CFR parts 
1036 and 1037 that the EPA proposed to modify or remove. In the 
proposal, we also noted that NHTSA's reporting and recordkeeping 
regulation in 49 CFR 535.8(a)(6) directs manufacturers to submit 
information to the EPA, and 49 CFR 535.8(a)(6) also provides direction 
to manufacturers to send the information directly to NHTSA in instances 
where the EPA does not have an electronic pathway to receive the 
information.\216\ We requested comment on whether any of the EPA's GHG 
test procedure, certification, and compliance program regulations 
should be retained with a CFR notation explaining that they only apply 
to NHTSA's HD fuel efficiency program. Regarding reporting, we also 
requested comment on the time required to transition from manufacturers 
supplying

[[Page 7745]]

data to the EPA to supplying the data directly to NHTSA.
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    \216\ See 49 CFR 535.8(a)(6).
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    Engine and vehicle trade organizations, individual manufacturers, 
and other organizations that commented on this topic expressed concern 
about the proposal to remove the EPA's GHG regulations, indicating that 
it would disrupt near-term certification for engine and vehicle 
manufacturers who would continue to be subject to fuel consumption 
standards under the NHTSA's fuel efficiency program. These commenters 
suggested that the EPA retain some or all of its GHG regulations until 
NHTSA is able to revise 49 CFR part 535 to independently implement 
their fuel efficiency program. In general, we agree with commenters 
that manufacturers should continue to have access to the regulations 
needed for NHTSA to effectively implement their program. At this time, 
NHTSA has not finalized regulations to update their HD fuel efficiency 
program under 49 CFR part 535. Therefore, after considering comments, 
and consistent with our request for comment on whether any of these 
provisions should be retained to support NHTSA's HD fuel efficiency 
program, we are only removing as proposed the EPA GHG standards in 40 
CFR 1036.108, 1037.105, and 1037.106 and other provisions in 40 CFR 
parts 1036 and 1037 that only apply for the EPA. Relatedly, as 
discussed in more detail in section VII.C.3.c of this preamble, we are 
retaining regulatory provisions so that manufacturers will continue to 
submit their data and information to the EPA until NHTSA has updated 
their regulations and is prepared to accept the manufacturers' data and 
information directly.
    To ensure NHTSA's fuel efficiency program remains implementable in 
the near-term, we are retaining the EPA regulations in 40 CFR parts 
1036 and 1037 that NHTSA references. The Response to Comments document 
for this final action describes specific changes we are finalizing to 
remove the EPA's GHG standards and retain the necessary provisions for 
NHTSA's fuel efficiency program. We note here that we have generally 
replaced references to ``CO2 standards'' with ``fuel 
consumption standards'' throughout 40 CFR parts 1036 and 1037. However, 
we have not removed all references to CO2 emissions 
throughout these parts. CO2 emissions remain the basis of 
many of the test procedures and compliance provisions used in NHTSA's 
fuel efficiency program. As such, we are retaining many of the 
requirements to measure and report CO2 emissions in 40 CFR 
parts 1036 and 1037 to support the NHTSA's fuel efficiency program. To 
avoid extensive revisions throughout the parts, we are also amending 
the 40 CFR 1036.801 and 1037.801 definitions of ``we (us, our)'' to 
mean the EPA for issues related to criteria pollutant standards and to 
include NHTSA for testing, compliance, and approvals related to fuel 
consumption standards.
    Another commenter expressed a preference that the EPA also retain 
its current responsibility for certification, noting that the 
Environment and Climate Change Canada (ECCC) currently accepts EPA 
certification and labeling for their greenhouse gas program, which 
simplifies the certification process for manufacturers exporting their 
vehicles to Canada. We will not be continuing to provide EPA 
certifications for GHG emissions because we are removing the GHG 
emission standards in this final action.
    While some manufacturers expressed support for the broad rescission 
of all of the EPA's GHG regulations, other industry commenters focused 
their comments specifically on the HD GHG Phase 3 program, noting that 
the Phase 3 standards are infeasible and that the rule was an ``EV 
mandate'' in violation of the major questions doctrine. More 
consistently, commenters from the HD industry noted their urgent need 
for regulatory certainty regarding the HD GHG Phase 3 standards that 
are currently set to apply for MY 2027. These commenters indicated that 
this final action is likely to be challenged, which could lead to the 
possibility that the final action would be stayed and the existing GHG 
regulations would remain in place, including the more stringent 
standards beginning in MY 2027. One approach suggested by commenters to 
provide near-term certainty was that the EPA rescind the Phase 3 
program separate from the Endangerment Finding rescission and allow 
industry to continue to meet the MY 2024 standards that are currently 
in place under the HD GHG Phase 2 program. Another suggested approach 
was that the EPA add a severability clause to the final action to allow 
for canceling or revising the GHG standards as originally adopted for 
MY 2027 and later vehicles and engines even if the Endangerment Finding 
or the broader GHG emission standards are not rescinded. The EPA is 
removing all GHG emission standards as noted in this preamble because 
we lack authority to set these standards. Therefore, we are not putting 
in place alternative GHG emission standards and are not committing to 
alternative GHG emission standards in a separate action. As stated 
previously, companies are still able to continue producing HD vehicles 
that meet the now non-existent HD engine and vehicle requirements if 
they so choose.
3. Changes to the Heavy-Duty Engine and Vehicle GHG Regulations
    The EPA's HD engine and vehicle emission regulations are contained 
in two standard-setting parts. 40 CFR part 1036 includes the engine-
based emissions regulations for both criteria pollutant and GHG 
emissions.\217\ 40 CFR part 1037 includes the vehicle-based emission 
regulations for criteria pollutant exhaust emissions, evaporative and 
refueling emissions, and GHG emissions.
---------------------------------------------------------------------------

    \217\ Note that HD engine manufacturers are subject to criteria 
pollutant standards in 40 CFR part 86, subpart A, through MY 2026. 
In a recent rulemaking (88 FR 4296, Jan. 24, 2023), the EPA migrated 
criteria pollutant regulations from 40 CFR part 86, subpart A, to 40 
CFR part 1036 with new requirements that apply to MY 2027 and later 
HD engines. See 88 FR 4326.
---------------------------------------------------------------------------

    In the following preamble subsections, we describe the removal and 
amendment of specific portions of each of these regulatory parts. This 
action removes the MY 2014 and later HD GHG emission standards 
promulgated in HD GHG Phase 1, Phase 2, and Phase 3, collectively. As 
noted in section VII.C.2 of this preamble, in general we are retaining 
many provisions for NHTSA's fuel efficiency program under 49 CFR part 
535. If NHTSA updates their regulations, then the EPA would consider a 
separate rulemaking to remove the remaining provisions related to the 
NHTSA fuel efficiency program, including the EPA's data collection 
responsibilities.
a. 40 CFR Part 1036--Emission Standards and Compliance Provisions for 
Heavy-Duty Engines
    40 CFR part 1036 contains regulations related to the final action 
titled ``Control of Emissions from New and In-Use Heavy-Duty Highway 
Engines.'' 40 CFR part 1036 continues to include emission standards and 
compliance provisions for criteria pollutant emissions and evaporative 
and refueling emissions that remain unchanged, but we are removing 
emission standards and compliance provisions for GHG exhaust emissions 
(i.e., CO2, nitrous oxide (N2O), and methane 
(CH4) for HD engines) in this final action, consistent with 
our proposal. 40 CFR part 1036 is divided into nine subparts with three 
appendices. Subpart A defines the applicability of part 1036 and gives 
an overview of regulatory requirements. Subpart B describes the 
emission standards and other requirements that must be met to certify 
engines under

[[Page 7746]]

this part. Subpart C describes how to apply for a certificate of 
conformity for HD engines. Subpart D addresses testing of production 
engines and hybrid powertrains. Subpart E addresses in-use testing, 
while Subpart F describes how to test engines to demonstrate compliance 
with the emission standards. Subpart G describes requirements, 
prohibitions, and other provisions that apply to engine manufacturers, 
vehicle manufacturers, owners, operators, rebuilders, and all others. 
Subpart H describes how manufacturers can optionally generate, bank, 
trade, and use emission credits to certify HD engines. Subpart I 
includes definitions and other reference material. Appendix A includes 
a summary of previous emission standards. Appendix B includes the 
transient duty cycles. Appendix C includes engine fuel maps used in the 
certification of specific vehicles to meet the HD vehicle emission 
standards.
    This preamble subsection includes an overview of the regulations 
related to the HD engine program we are removing or revising. In 
general, we are amending 40 CFR part 1036 to remove all GHG emission 
standards, references to such standards, and certain related 
provisions; however, most of 40 CFR part 1036 is retained as it is for 
the EPA's HD engine criteria pollutant emission program. As described 
in section VII.C.2 of this preamble, after considering comments, we are 
also retaining provisions to which NHTSA specifically refers in their 
fuel efficiency regulations of 49 CFR part 535. In this preamble 
subsection we describe the amendments we are finalizing for 40 CFR part 
1036, which include revising or removing GHG-related provisions and 
clarifying when a provision is retained specifically for NHTSA's fuel 
efficiency program; some amendments are also needed to retain the 
efficacy of the EPA's criteria pollutant emission standards. Table 11 
provides a summary of the regulations we are removing or amending in 40 
CFR part 1036 or have retained specifically for NHTSA's fuel efficiency 
program.
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BILLING CODE 6560-50-C
    In 40 CFR part 1036, subpart A, we added clarification in a new 40 
CFR 1036.1(e) noting that the test procedure and compliance elements 
that previously applied to GHG emission standards, now only apply to 
implement NHTSA's HD fuel efficiency standards in 49 CFR part 535. We 
are finalizing minor changes to 40 CFR 1036.5(a) to differentiate more 
clearly the certification requirements for MD vehicles from those for 
HD engines.
    Within 40 CFR part 1036, subpart B, we are removing as proposed 40 
CFR 1036.108, which included the GHG emission standards for 
CO2, N2O, and CH4. We are retaining 
for NHTSA 40 CFR 1036.115(b) and 1036.130(c), which refer to fuel maps. 
As proposed, we are removing, and reserving to otherwise retain the 
existing section numbering, several paragraphs from 40 CFR 1036.150 
that described interim provisions that have equivalent provisions in 49 
CFR part 535 or only applied for the EPA's GHG program, including: 40 
CFR 1036.150(b), (e), (g)-(j), (l), (p), (w) and (aa). While we did 
propose to remove paragraphs (d), (m), (n), and (q)-(s), these interim 
provisions apply for NHTSA's program, and we are

[[Page 7748]]

retaining them with revisions to remove references to GHG emission 
standards.
    We did not propose changes to the onboard diagnostic (OBD) 
regulations in 40 CFR part 1036, subpart B but we received comments 
that GHG-related requirements are embedded within California's 2022 
OBD-II regulations that the EPA incorporates by reference. Commenters 
requested that the EPA exclude active technology, CO2 
parameters, and reporting CO2 results during an OBD 
demonstration in the same manner as we previously excluded other 
specific California OBD requirements that did not apply for meeting the 
EPA regulations. Since we are removing GHG standards and related 
requirements in this final action, we agree that it is appropriate to 
also remove the requirement to monitor GHG parameters as part of OBD. 
For the final action, to conform with our removal of the EPA GHG 
standards, we are adding new paragraphs 40 CFR 1036.110(b)(14) through 
(18) to exclude the definition of ``Active Technology'' and related 
standardization, data storage, certification documentation, and 
monitoring system demonstration requirements from the EPA OBD 
provisions under 40 CFR 1036.101.
    In 40 CFR part 1036, subpart C, we are retaining for NHTSA 
references to family emission limit (FEL) and family certification 
limit (FCL) that we proposed to remove, and are generally replacing 
references to CO2 FCLs or standards with more generalized 
text to apply for NHTSA. Also, for NHTSA, we are retaining with 
revisions 40 CFR 1036.230(f) and (g) that we proposed to remove. The 
revised 40 CFR 1036.230(f) and (g) now refer to 49 CFR part 535 and 
remove references to GHG standards in the description of how 
manufacturers divide their product lines into engine families. In 40 
CFR 1036.230(f)(5) and throughout 40 CFR part 1036, we remove reference 
to EPA approvals related to GHG emissions. Therefore, under this final 
action, manufacturers would only need to obtain approval from NHTSA for 
elements related to their fuel efficiency program. We are also 
finalizing several revisions in 40 CFR 1036.235 to refer to 49 CFR part 
535 and remove references to GHG emission testing requirements. In 40 
CFR 1036.235(a), we are migrating text from 40 CFR 1037.235(a) that 
provides direction on how manufacturers select the test powertrain to 
replace GHG-related testing requirements in 40 CFR 1036.235(a)(4). We 
are retaining for NHTSA 40 CFR 1036.241 that we proposed to remove but 
are finalizing revisions to refer to 49 CFR part 535 and removing 
references to GHG standards in the description of how to demonstrate 
compliance.
    Also in 40 CFR part 1036, subpart C, we are migrating as proposed 
the provisions that relate to powertrain families from the vehicle 
standard-setting part in 40 CFR 1037.231 to the engine standard-setting 
part as a new 40 CFR 1036.231 and are finalizing revisions described in 
this section VII.C.3.a of the preamble. In a previous rule (89 FR 
29616, Apr. 22, 2024), we migrated the powertrain test procedure from 
the HD vehicle procedures (formerly 40 CFR 1037.550) to the HD engine 
procedures in 40 CFR 1036.545 because we expected powertrain testing to 
be primarily used by engine manufacturers. Similarly, we proposed to 
migrate the related provisions manufacturers would use to divide their 
product line into powertrain families by migrating the text from the 
vehicle program in 40 CFR 1037.231 to a newly created section in the 
engine program under 40 CFR 1036.231. We are finalizing that migration 
and modifying as proposed the text previously under 40 CFR 
1037.231(b)(1), such that the new 40 CFR 1036.231(b)(1) no longer 
requires powertrains to share the same engine families described in 40 
CFR 1036.230 but requires the engine share the same design aspects 
specified in 40 CFR 1036.230. Since a manufacturer may choose to 
certify the whole powertrain to the standards in 40 CFR part 1036, 
there would only be a powertrain family, not a certified engine family 
that contains just the engine. Similarly, and consistent with our 
approach for defining engine families in existing 40 CFR 1036.230, we 
see no need to limit the powertrain family based on the vehicle service 
class the powertrain goes into and therefore did not migrate the 
existing 40 CFR 1037.231(b)(2) that requires powertrain families to 
share vehicle service class groupings. We are also not migrating 
``energy capacity'' as an example attribute in the new 40 CFR 
1036.231(b)(10), since it is not needed for the criteria pollutant 
standards. Similarly, we are not migrating existing 40 CFR 
1037.231(b)(11) since rated output of hybrid mechanical power 
technology is also not needed for a criteria pollutant family 
definition.
    In 40 CFR part 1036, subpart D, we are retaining for NHTSA 40 CFR 
1036.301 with revisions to refer to 49 CFR part 535 and remove 
references to CO2 in the description of the requirements for 
selective enforcement audits.
    As previously noted, we retained and did not reopen the in-use 
testing procedures in 40 CFR part 1036, subpart E, which apply for the 
criteria pollutant emission standards. More specifically, within the 
in-use test procedures, we are retaining references to measuring 
CO2 for use in required chemical balance test procedures and 
to calculate the criteria pollutant emissions values for in-use 
testing. Also, in 40 CFR 1036.415(g), we are retaining the existing 
text requiring manufacturers to override any adjustable idle-reduction 
features on vehicles used for in-use testing; we are not taking action 
at this time on the proposed more general statement describing what it 
means to be adjustable.
    In 40 CFR part 1036, subpart F, we are retaining for NHTSA test 
procedures related to developing engine data to support NHTSA's HD 
vehicle fuel efficiency program. We are retaining 40 CFR 1036.505, 
1036.535, 1036.540, 1036.543, and 1036.550 and the fuel map duty cycle 
in Appendix C to part 1036 that we proposed to remove. In 40 CFR 
1036.510, we are finalizing several revisions to paragraph (b), 
including replacing a reference to 40 CFR 1036.540(c)(2) with a 
reference to a new table we are including in that section as proposed 
that provides the same gear ratios based on engine service class from 
40 CFR 1036.540. We are retaining 40 CFR 1036.510(e) and 1036.512(e), 
which described how to determine CO2 emissions for plug-in 
hybrid powertrains using the HD engine Federal Test Procedure (FTP) and 
engine Supplemental Emissions Test (SET) and duty cycles, respectively, 
to support NHTSA's HD fuel efficiency program. In 40 CFR 1036.530(e), 
we are retaining the existing requirement that manufacturers measure 
CO2 emissions for in-use testing, including the variable 
eCO2FTPFCL. We are not taking action at this time on the 
revised variable eCO2FTP that we proposed would represent 
the engine's brake-specific CO2 over the FTP or SET duty 
cycle.
    Powertrain testing, also described in 40 CFR part 1036, subpart F, 
is an option that manufacturers may use for certifying hybrid 
powertrains to the engine criteria pollutant standards in 40 CFR 
1036.104 and the GHG emission standards in 40 CFR 1036.108. The 
powertrain test procedure in 40 CFR 1036.545 describes testing a 
powertrain that includes an engine coupled with a transmission, drive 
axle, and hybrid components, or a subset of these components. We 
retained and did not reopen most of 40 CFR 1036.545 related to the 
powertrain testing for criteria pollutants. We proposed to remove the 
portions related to the GHG program and revise several paragraphs to 
account for the removed GHG content; however,

[[Page 7749]]

we are retaining these provisions for NHTSA's fuel efficiency program 
with targeted revisions to replace references to the EPA's standards 
with NHTSA's standards. While we are retaining vehicle test procedures 
from 40 CFR part 1037, we are finalizing as proposed the revisions in 
40 CFR 1036.545(d) to replace references to the 40 CFR 1037.565 vehicle 
test procedure with the relevant text from that procedure.
    Throughout 40 CFR 1036.545, we are retaining existing requirements 
to create inputs for the Greenhouse gas Emission Model (GEM) tool that 
manufacturers use for compliance with NHTSA's fuel efficiency program. 
Vehicle manufacturers will continue to have access to GEM Phase 2, 
Version 4.0, including the hardware-in-the-loop (HIL) model within that 
version of GEM, that is incorporated by reference in 40 CFR 1037.810 
and currently available on the EPA's website.\218\ We also are 
retaining references to the use of utility factors, vehicle 
configurations, and vehicle-based duty cycles and test procedures that 
do not apply for the criteria pollutant program but apply to NHTSA's 
fuel efficiency program. We are removing as proposed 40 CFR 1036.545(p) 
which described the procedure to determine usable battery energy for 
plug-in hybrid powertrains that was added in the EPA's HD Phase 3 rule.
---------------------------------------------------------------------------

    \218\ GEM Phase 2, Version 4.0 is incorporated by reference in 
40 CFR 1036.545. See also 40 CFR 1036.810.
---------------------------------------------------------------------------

    In 40 CFR part 1036, subpart G, we are revising 40 CFR 1036.605 to 
remove the EPA N2O requirements for engines installed in 
specialty vehicles and the ability to generate or use credits and are 
finalizing similar changes in 40 CFR 86.007-11(g) and 86.008-10(g) for 
MY 2026 and earlier specialty vehicle engines. We are retaining 40 CFR 
1036.610 with a revised section heading to remove reference to GHG 
emissions, because NHTSA's regulations in 49 CFR part 535 refer to 
these off-cycle technology test procedures. We are also retaining for 
NHTSA 40 CFR 1036.615 and 1036.620, with revisions to 40 CFR 1036.620 
to remove references to CO2 standards and banked credits, 
and the labeling requirement of paragraph (d). We are removing as 
proposed 40 CFR 1036.625, which described how to adjust CO2 
FEL values; the NHTSA regulations contain their own provisions for 
manufacturers to make adjustments to their compliance values and they 
do not refer to 40 CFR 1036.625.
    We also are removing as proposed 40 CFR 1036.635, which described 
how manufacturers that certify engines for use in high-gross combined 
vehicle weight (GCWR) MD vehicles under 40 CFR part 1036 could comply 
with GHG standards under 40 CFR part 86, subpart S. With no need to 
describe the GHG-related flexibilities in 40 CFR 1036.635, the existing 
applicability provisions in 40 CFR 1036.1 and 1036.5 already cover the 
certification provisions for high-GCWR vehicles as they relate to 
criteria pollutants. Specifically, 40 CFR 1036.1 sets up the default of 
applying the standards and certification requirements from 40 CFR part 
1036 to all engines installed in HD vehicles (generally vehicles above 
8,500 pounds GVWR), while 40 CFR 1036.5 allows manufacturers to certify 
MD vehicles to the chassis-based program as described in 40 CFR 
86.1801-12.
    The NHTSA regulations under 49 CFR part 535 contain their own ABT 
provisions for calculating and using fuel consumption credits. In 40 
CFR part 1036, subpart H, we are generally removing references to the 
EPA's CO2 standards and are amending the calculation 
provisions to clarify they only apply for the EPA criteria pollutant 
credit calculations. We are retaining the ABT reporting provisions of 
40 CFR 1036.730, since the EPA will continue to collect the information 
as described in 40 CFR 1036.755 for NHTSA's fuel efficiency program. 
The allowance for manufacturers to generate credit deficits under 40 
CFR 1036.745 is required for NHTSA's ABT program for its fuel 
consumption standards. We are retaining for NHTSA 40 CFR 1036.745 and 
references to that section within subpart H, but are replacing the 
content of 40 CFR 1036.745 with a reference to NHTSA's fuel consumption 
credits provisions under 49 CFR 535.7.
    In 40 CFR part 1036, subpart I, we proposed to remove GHG-specific 
symbols, abbreviations, and acronyms from 40 CFR 1036.805, and 
materials from 40 CFR 1036.810 that were only incorporated by reference 
in the test procedures we proposed to remove. Similarly, in 40 CFR 
1036.801, we proposed to remove several GHG-specific definitions, and 
move transmission- and other powertrain-related definitions from the HD 
vehicle definitions in 40 CFR 1037.801 to the engine definitions in 40 
CFR 1036.801, so they can be available to engine manufacturers using 
the powertrain test procedures in 40 CFR 1036.545. For the final 
action, we are retaining the provisions in 40 CFR 1036.801, 1036.805, 
1036.810, and 1036.815 to provide for the implementation of NHTSA's 
fuel efficiency program. We are finalizing as proposed the new 
transmission- and other powertrain-related definitions in 40 CFR 
1036.801 since the powertrain test procedures are now in 40 CFR part 
1036, but note that we are also retaining the same definitions in 40 
CFR 1037.801.
    We proposed to remove Appendix C to part 1036, which contains the 
default engine fuel maps that are used by 40 CFR 1036.540. In this 
final action, we are retaining Appendix C, consistent with our decision 
to retain 40 CFR 1036.540 and the other provisions needed by NHTSA for 
their fuel efficiency program.
b. 40 CFR Part 1037--Emission Standards and Compliance Provisions for 
Heavy-Duty Vehicles
    40 CFR part 1037 contains regulations related to the final action 
titled ``Control of Emissions from New Heavy-Duty Motor Vehicles.'' 40 
CFR part 1037 continues to include criteria pollutant emission 
standards that apply for all HD vehicles, and evaporative and refueling 
emission standards that apply for certain HD vehicles, but we are 
removing GHG emission standards, consistent with the proposal. 40 CFR 
part 1037 is divided into nine subparts with five appendices. Subpart A 
defines the applicability of part 1037 and gives an overview of 
regulatory requirements. Subpart B describes the emission standards and 
other requirements that must be met to certify vehicles under this 
part. Subpart C describes how to apply for a certificate of conformity. 
Subpart D and E address testing of production and in-use vehicles, 
respectively. Subpart F describes how to test vehicles and perform 
emission modeling for vehicles subject to the CO2 emission 
standards. Subpart G, along with 40 CFR part 1068, describe 
requirements, prohibitions, and other provisions that apply to 
manufacturers, owners, operators, rebuilders, and all others. Subpart H 
describes how manufacturers can optionally generate and use emission 
credits to certify vehicles. Subpart I includes definitions and other 
reference material. Finally, Appendix A, B, and D include test cycles, 
Appendix C presents emission control identifiers for emissions labels, 
and Appendix E presents power take-off utility factors.
    This preamble subsection includes an overview of the regulations 
related to the HD vehicle program we are removing or revising. In 
general, we are amending 40 CFR part 1037 to remove all GHG emission 
standards (i.e., CO2 and HFC standards for vehicles), 
references to such standards, and certain related provisions without 
revising provisions necessary to support criteria pollutant standards, 
including

[[Page 7750]]

evaporative and refueling emission standards. As described in section 
VII.C.2 of this preamble, after considering comments, we are retaining 
provisions to which NHTSA specifically refers in their fuel efficiency 
regulations of 49 CFR part 535. In this preamble subsection, we 
describe the amendments to revise the GHG-related provisions from 40 
CFR part 1037, which include some amendments needed to retain the 
efficacy of the criteria pollutant emission standards or clarify when a 
provision is retained specifically for NHTSA's fuel efficiency program. 
Table 12 provides a summary of the regulations we are removing or 
amending in 40 CFR part 1037 or have retained specifically for NHTSA's 
fuel efficiency program.
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    In 40 CFR part 1037, subpart A, we retained and did not reopen the 
existing applicability of 40 CFR part 1037. Specifically, as described 
in existing 40 CFR 1037.1, the part continues to apply for BEVs, fuel 
cell electric vehicles (FCEVs), and vehicles fueled by conventional and 
alternative fuels. We added clarification in a new 40 CFR 1037.1(c) 
noting that the test procedure and compliance elements that previously 
applied to GHG emission standards, now only apply to implement NHTSA's 
HD fuel efficiency program in 49 CFR part 535. We note that the revised 
40 CFR part 1037 continues to contain provisions that apply to HD 
vehicles under NHTSA's fuel efficiency program; however, it applies for 
fewer vehicles under the EPA's criteria pollutant program. Without EPA 
GHG standards, there are no vehicle-level emission standards for 
vehicles (including glider vehicles) with engines certified to other 
parts. Under this final action, the only HD vehicles that would 
continue to require a vehicle-level certificate of conformity from the 
EPA are those with no installed propulsion engine, such as BEVs and 
FCEVs, certifying to the criteria pollutant standards of 40 CFR 
1037.102. Tailpipe emissions of criteria pollutants from BEVs and FCEVs 
would continue to be deemed to be zero with no testing

[[Page 7751]]

requirements, but the EPA will require that BEV and FCEV manufacturers 
apply for a certificate of conformity to meet the requirements of CAA 
section 202(a).
    In 40 CFR part 1037, subpart B, we are removing the MY 2014 and 
later HD vehicle CO2 emission standards promulgated in HD 
GHG Phase 1, Phase 2, and Phase 3, which included the vocational 
vehicle standards in 40 CFR 1037.105 and the tractor standards in 40 
CFR 1037.106. While we are removing GHG standards and related 
requirements, we retained and did not reopen criteria pollutant exhaust 
emission standards in 40 CFR 1037.102 and the evaporative and refueling 
emission standards in 40 CFR 1037.103.
    We proposed to revise 40 CFR 1037.102(a) to describe how vehicles 
can be deemed to meet the criteria pollutant exhaust emission standards 
without testing under 40 CFR part 1037. Commenters raised concerns with 
the proposed approach to adopt new vehicle family definitions citing an 
associated need for new labeling, tracking systems, and reporting 
systems that would require additional time to implement. The commenters 
requested to keep today's vehicle family definitions, as they are 
required by NHTSA. After considering these comments, we note that the 
EPA did not intend for the new vehicle family definitions to increase 
burden on certifying manufacturers. Since vehicles with a propulsion 
engine are already covered under EPA engine certificates for criteria 
pollutants, we do not need to require a separate vehicle certificate 
for criteria pollutants. Therefore, we are retaining the current 
language in 40 CFR 1037.102(a) and (b) such that only vehicles without 
a propulsion engine will continue to be subject to the criteria 
pollutant standards in 40 CFR part 1037.
    In the HD GHG Phase 2 rulemaking, we adopted PM emission standards 
that apply for APUs installed on new tractors. Since PM emissions are 
criteria pollutant emissions, we retained and did not reopen the PM 
emission standards for APUs but proposed to migrate the standards from 
40 CFR 1037.106(g) to a new 40 CFR 1037.102(c) because we proposed to 
remove 40 CFR 1037.106. We are finalizing our proposed migration from 
40 CFR 1037.106 and are modifying as proposed 40 CFR 1039.699(a) and 
(n) to refer to the new 40 CFR 1037.102 instead of 40 CFR 1037.106.
    Also in 40 CFR part 1037, subpart B, we are amending 40 CFR 
1037.115 to remove the HFC emission (i.e., air conditioning leakage) 
standards and the battery durability monitor requirements. We are 
revising as proposed the list of components covered under 40 CFR 
1037.120(c). Under this final action, we are removing many HD vehicle 
GHG-reducing technologies but emission-related warranty would continue 
to apply for fuel cell stacks, RESS, and other components used with 
BEVs or FCEVs certified to the EPA's criteria pollutant standards or 
evaporative and refueling emission controls on vehicles subject to the 
EPA's evaporative and refueling standards. We are finalizing as 
proposed the removal of warranty requirements from 40 CFR part 1037 for 
RESS and other components used in hybrid vehicles. We note that 
manufacturers certifying hybrids to the EPA's criteria pollutant 
program would be doing so under the engine standards of part 1036 and 
would warrant the RESS and other components from those systems under 40 
CFR part 1036. We did not reopen or propose to remove the warranty 
requirements for hybrid system components in 40 CFR part 1036.
    We acknowledge commenters' suggestion that warranty should not 
apply for vehicles with no propulsion engine and no tailpipe emissions; 
however, these components are covered under the EPA's criteria 
pollutant program and the related warranty comments are out of scope 
for this action. We did not reopen the requirement that the basic 
emission-related warranty applies for fuel cell stacks and RESS as they 
continue to qualify as an emission-related component related to 
criteria pollutant emission standards. Therefore, we are retaining 
these provisions for the final action. Similarly, we retained and did 
not reopen the emission control components covering a vehicle's 
evaporative and refueling emissions.
    Under this final action, we are finalizing a revision to replace 
the content of existing maintenance provisions of 40 CFR 1037.125 with 
a single sentence requiring manufacturers to provide written 
instructions for properly maintaining the emission control system.\219\ 
In the labeling provisions of 40 CFR 1037.135(c) we are removing as 
proposed paragraphs (c)(6) and (7) that relate to identifying the EPA-
specific emission control system and fuel sulfur levels on the label, 
respectively. We proposed to remove 40 CFR 1037.140 and 1037.150, which 
included the vehicle classifications and interim provisions related 
directly to NHTSA's HD vehicle fuel efficiency program. In this final 
action, we are retaining 40 CFR 1037.140 with revisions to remove 
reference to the EPA's standards and we are retaining the NHTSA-
referenced paragraphs of 40 CFR 1037.150 to assist in the continued 
implementation of NHTSA's program.
---------------------------------------------------------------------------

    \219\ We are not aware of any scheduled maintenance for 
evaporative and refueling emission control components, or BEV or 
FCEV components, but if there was then the maintenance provisions of 
40 CFR 1037.125 would apply.
---------------------------------------------------------------------------

    In 40 CFR part 1037, subpart C, we proposed to remove 40 CFR 
1037.201(g) that describes confirmatory testing; however, in this final 
action, we are retaining paragraph (g) for NHTSA's fuel efficiency 
program. We proposed to remove several provisions in 40 CFR 1037.205, 
which defines what manufacturers would include in their application for 
certification, because they would no longer be needed for GHG 
certification. However, in this final action we are instead revising 40 
CFR 1037.205 to reflect the information that is required for NHTSA's 
fuel efficiency program.
    We are retaining for NHTSA the existing 40 CFR 1037.225 and 
1037.230 with minor revisions to remove reference to GHG and 
CO2 standards. After considering comments, we are not 
finalizing the streamlined vehicle families we proposed for 40 CFR 
1037.230 to avoid additional burden for manufacturers certifying to 
NHTSA's fuel consumption standards using the original vehicle families. 
We are finalizing as proposed the migration of the powertrain families 
provision from 40 CFR 1037.231 to the HD engine regulations under a new 
40 CFR 1036.231. We are retaining 40 CFR 1037.231 but replacing the 
content of that section with a reference to the new location of the 
provision in 40 CFR 1036.231. We proposed to remove 40 CFR 1037.232 and 
1037.241 and revise 40 CFR 1037.235 and 1037.250, but are retaining 
them for NHTSA in this final action, with targeted revisions to remove 
references to GHG and CO2 standards.
    We proposed to remove 40 CFR part 1037, subparts D and E in their 
entirety because they describe the testing of production and in-use 
vehicles to demonstrate compliance with the EPA's HD CO2 
emission standards. However, we are retaining these provisions in this 
final action for NHTSA's fuel efficiency program. While the EPA would 
not be administering any production or in-use testing for GHG 
emissions, NHTSA references 40 CFR 1037.301 through 1037.320 which 
include audit procedures for inputs to the GEM, tractor aerodynamic 
testing, powertrain testing, and axle and transmission testing, and 
also references 40 CFR 1037.401 for in-use testing provisions.

[[Page 7752]]

    We proposed to remove 40 CFR part 1037, subpart F, in its entirety 
because it included the testing and modeling provisions necessary to 
certify HD vehicles to the CO2 emission standards. The 
provisions in 40 CFR 1037.501 through 1037.570 include procedures for 
vehicle-based duty cycles for measuring CO2 emissions, 
aerodynamic testing, powertrain component testing, testing with hybrid 
power take-off units, and the use of GEM. We are retaining all of 40 
CFR part 1037, subpart F because these test procedures are referred to 
by NHTSA in 49 CFR part 535. We are retaining the existing text for 
most sections of 40 CFR part 1037, subpart F, but we are finalizing 
some targeted revisions to 40 CFR 1037.501, 1037.520, 1037.540, 
1037.551, and 1037.555 to replace references to CO2 
standards with references to NHTSA's fuel consumptions standards. In 40 
CFR 1037.560, 1037.565, and 1037.570, we are removing references to 
``critical emission-related maintenance'' which only applies for the 
EPA. Since the NHTSA regulations currently refer to 40 CFR 1037.550, 
which the EPA removed in a previous rule when the powertrain test 
procedure was migrated to 40 CFR 1036.545 (89 FR 29616 April 22, 2024), 
we are restoring 40 CFR 1037.550 for NHTSA with a single sentence that 
directs readers to the correct 40 CFR 1036.545 for the powertrain test 
procedure.
    We proposed to remove several sections of 40 CFR part 1037, subpart 
G, relating to special compliance provisions for the HD vehicle GHG 
emission standards. However, we are retaining all of the provisions 
required for the implementation of NHTSA's fuel efficiency program in 
49 CFR part 535. These sections include provisions related to off-cycle 
technologies, advanced technologies, special purpose tractors, variable 
vehicle speed limiters, and idle reduction technologies. We are 
removing as proposed 1037.645, 1037.665, and 1037.670, which are not 
referenced by NHTSA.
    We received a comment on 40 CFR 1037.605, in 40 CFR part 1037, 
subpart G, which allows manufacturers to use nonroad-certified engines 
in certain specialty highway vehicles. While we proposed to remove the 
vehicle labeling requirements in 40 CFR 1037.605(d), we did not propose 
any changes to paragraphs (a) through (c), which specify how the 
provisions apply for vehicle manufacturers using this allowance. The 
existing provisions apply for up to 200 all-terrain vehicles with 
specific axles, amphibious vehicles, and low speed vehicles. Through MY 
2027, the provisions also apply for up to 1,000 vehicles with a hybrid 
powertrain where the engine provides energy only for the RESS. The 
commenter suggested that the EPA extend the hybrid provision beyond MY 
2027 to allow the manufacturer to make a small number of hybrid fire 
trucks per year. The commenter cited compliance challenges associated 
with obtaining a highway-certified hybrid and that the existing hybrid 
sunset date was based on an expected increasing prevalence of HD hybrid 
powertrains, which is not occurring. As noted, we did not propose 
changes to the general provisions of 40 CFR 1037.605, and, therefore, 
this request is outside of the scope of this action. We may consider 
changes to this provision in a future rulemaking.
    We proposed to remove 40 CFR part 1037, subpart H in its entirety. 
The provisions of 40 CFR 1037.701 through 1037.750 describe the 
averaging, banking, and trading of CO2 emission credits, 
along with associated recordkeeping and reporting requirements. We are 
retaining the regulatory provisions that are required by NHTSA for 
implementation of the fuel efficiency program. These include 40 CFR 
1037.725, 1037.730, 1037.735, 1037.740, 1037.745, and 1037.755. We are 
removing as proposed 40 CFR 1037.705, 1037.710, 1037.715, 1037.720, and 
1037.750. Throughout subpart H, we replace references to CO2 
standards with references to NHTSA's fuel consumption standards, 
replace the term ``emission credits'' with a more generic ``credits'' 
term. Since the NHTSA regulations refer to 40 CFR 1037.745, we are 
retaining that section but are replacing the content with a sentence 
that points the reader to the equivalent credit deficit provision for 
NHTSA's fuel consumption credits under 49 CFR 535.7.
    We proposed several revisions in 40 CFR part 1037, subpart I, to 
remove the GHG-specific definitions from 40 CFR 1037.801, and symbols, 
abbreviations, and acronyms from 40 CFR 1037.805. We also proposed to 
remove 40 CFR 1037.810, which includes materials incorporated by 
reference to support testing to demonstrate compliance with the HD 
vehicle GHG standards. This includes, but is not limited to, the GEM 
model and test procedures for measuring the rolling resistance of 
tires, tire revolutions per mile, and aerodynamics using coastdown, 
wind tunnel, and computational fluid dynamics. We are, however, 
retaining nearly all of subpart I in 40 CFR part 1037 because they are 
required to support NHTSA's 49 CFR part 535 regulations. We are 
removing the definition of ``Phase 3'' and revising the definitions of 
``Phase 1'' and ``Phase 2'' to replace references to EPA standards with 
NHTSA's fuel consumption standards. As noted in section VII.C.2 of this 
preamble, we are also revising the definition of ``we (us, our)'' to 
include NHTSA for any regulations we are retaining related to fuel 
consumption standards. In Table 1 to paragraph (a) of 40 CFR 1037.805, 
we are removing the chemical species methane and nitrous oxide, which 
are GHG emissions used only by EPA regulations. In 40 CFR 1037.810, we 
are updating as needed references to regulatory sections or paragraphs 
that have been removed or changed in this final action.
    Lastly, we proposed to remove all appendices to 40 CFR part 1037. 
Appendices A, B, and D include the test cycles related to HD vehicle 
GHG standards. Appendix C includes the emission control identifiers for 
GHG emission labels. Appendix E includes the power take-off unit 
utility factors applied in GHG-specific test procedures. We are 
retaining all of the existing appendices in 40 CFR part 1037 because 
they are required to support NHTSA's 49 CFR part 535 regulations.
c. Relationship Between the EPA's GHG and NHTSA's Fuel Efficiency 
Medium- and Heavy-Duty Programs
    The current certification and compliance process as relevant for 
NHTSA is as follows, separately for HD engines and HD vehicles:
    1. Manufacturers submit fuel consumption data to the EPA using the 
EPA's electronic certification system following EPA test procedures 
included in 40 CFR parts 1036 and 1037;
    2. The EPA issues certificates of conformity to the manufacturers;
    3. Before and during the MY, the EPA sends the fuel consumption 
data and associated information to NHTSA;
    4. After the MY, the EPA analyzes end-of-year reports submitted to 
the EPA by manufacturers for compliance and shares the fuel consumption 
data with NHTSA; and
    5. NHTSA manages its compliance process related to the fuel 
consumption standards.
    We proposed to remove 40 CFR 1036.755 and 1037.755, which describe 
the information the EPA provides to the Department of Transportation 
related to HD engine and vehicle fuel consumption. We noted that 
NHTSA's reporting and recordkeeping regulation in 49 CFR 535.8(a)(6) 
directs manufacturers to submit information to the EPA. 49 CFR 
535.8(a)(6) also provides direction to manufacturers in instances where 
the EPA does not have an electronic pathway to receive the

[[Page 7753]]

information, to send it through an electronic portal identified by 
NHTSA, through the NHTSA CAFE database, or to send hardcopy documents 
to the address provided in the regulations. We requested comment on the 
time required to transition from manufacturers supplying data to the 
EPA to supplying the data directly to NHTSA.
    Manufacturers and other commenters suggested that the EPA retain 
some or all of its GHG regulations until NHTSA is able to revise 49 CFR 
part 535 to independently implement their fuel efficiency program. 
After considering comments, we are removing as proposed the EPA GHG 
standards in 40 CFR 1036.108, 1037.105, and 1037.106 and other 
provisions in 40 CFR parts 1036 and 1037 that only apply for the EPA. 
However, to ensure NHTSA's fuel efficiency program remains 
implementable in the near-term, we are retaining the EPA regulations in 
40 CFR parts 1036 and 1037 that NHTSA references, including the 
provisions where manufacturers submit data to the EPA.
    Therefore, much of the current certification and compliance process 
outlined above will remain the same. At this time, the EPA intends to 
continue to maintain its Engines and Vehicles Compliance Information 
System (EV-CIS) and manufacturers will continue to have an EPA 
Designated Compliance Officer for submitting information regarding 
NHTSA's fuel efficiency program. However, we note that the EPA would 
not grant approvals related to special compliance provisions, issue EPA 
certificates of conformity for GHG emissions, or analyze end of year 
reports for compliance with the GHG emission standards. Furthermore, 
the EPA will perform confirmatory testing, in-use testing, or selective 
enforcement audits only in relation to the EPA criteria pollutant 
program. We note that vehicle manufacturers will continue to have 
access to the GEM Phase 2, Version 4.0 that is incorporated by 
reference in 40 CFR 1037.810 and currently available on the EPA's 
website. If NHTSA updates their regulations and is prepared to accept 
the manufacturers' data and information directly, then the EPA would 
consider a separate rulemaking to remove the remaining provisions 
related to the NHTSA fuel efficiency program, including the EPA's data 
collection responsibilities.

VIII. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 14094: Modernizing Regulatory Review

    This is an economically significant regulatory action that was 
submitted to OMB for review. Any changes made have been documented in 
the docket. The EPA has prepared an RIA for this action to project 
impacts as required by E.O. 12866, and it can be found in the 
docket.\220\
---------------------------------------------------------------------------

    \220\ ``Rescission of the Greenhouse Gas Endangerment Finding 
and Motor Vehicle Greenhouse Gas Emission Standards Under the Clean 
Air Act: Regulatory Impact Analysis.'' EPA-420-R-26-002. February 
2026.
---------------------------------------------------------------------------

    As we stated in the proposal, the EPA has not relied upon any 
aspect of the draft RIA or this final RIA as justification for this 
rulemaking. Some commenters suggested that the benefit-cost assessments 
provided in the draft RIA do not justify repealing the prior standards. 
However, the EPA is repealing the GHG emission standards for LD 
vehicles, MD vehicles, HD vehicles, and HD engines consistent with the 
discussion of legal authority in this preamble, and the EPA is not 
relying upon the CAA section 202(a) factors for standard-setting in 
this final action. For this final action, we have conducted benefit-
cost assessments pursuant to E.O. 12866, but we recognize that there 
are costs and benefits that we are currently unable to fully quantify 
and monetize.
    Commenters also stated that the EPA should have included an 
assessment of air quality and climate impacts from removing the motor 
vehicle and engine GHG standards. For this final action, the EPA 
performed modeling to estimate changes in criteria pollutants, air 
toxics, and GHG emissions. The projected emissions changes can be found 
in a memorandum in the docket for this action.\221\ The EPA also 
performed climate impacts modeling for this final action, which is 
documented in a memorandum in the docket for this action.\222\
---------------------------------------------------------------------------

    \221\ See Memorandum to Docket EPA-HQ-OAR-2025-0194. ``Projected 
Criteria, Air Toxics, and GHG Emissions Impacts for the ``Rescission 
of the Greenhouse Gas Endangerment Finding and Motor Vehicle 
Greenhouse Gas Emission Standards Under the Clean Air Act'' Final 
Rule.''
    \222\ See Memorandum to Docket EPA-HQ-OAR-2025-0194. 
``Temperature, CO2 Concentration, and Sea Level Rise 
Impacts of Greenhouse Gas Emissions from U.S. Motor Vehicles.''
---------------------------------------------------------------------------

    The analyses provided in the RIA have been revised since the rule 
was proposed to reflect a number of considerations, including some 
elements highlighted by commenters. The analyses rely on updated 
versions of the models used to analyze the impacts of the proposal, 
which were based on the models and tools used to estimate impacts of 
the light- and medium-duty, and the heavy-duty rules finalized by the 
EPA in 2024.\223\ A number of the updates made to the analysis, 
including in response to comments, are discussed below. For more 
information on updates to the analyses, see the RIA. For more 
information on the comments we received on the analysis in the 
proposal, as well as our responses, see the Response to Comments 
document. In addition to the changes noted in the following paragraphs, 
we updated the costs and benefits from 2022 dollars to 2024 dollars.
---------------------------------------------------------------------------

    \223\ See ``Multi-Pollutant Emissions Standards for Model Years 
2027 and Later Light-Duty and Medium-Duty Vehicles: Regulatory 
Impact Analysis'', EPA-420-R-24-004, March 2024; and ``Greenhouse 
Gas Emissions Standards for Heavy-Duty Vehicles: Phase 3: Regulatory 
Impact Analysis, EPA-420-R-24-06, March 2024.
---------------------------------------------------------------------------

    We received comments that the approach used in the EPA's OMEGA 
modeling of GHG standards for the proposed rule did not appropriately 
capture removing all GHG standards for LD and MD vehicles. Commenters 
stated that instead of extending the MY 2026 GHG standards into MYs 
2027 and beyond, a more appropriate modeling approach would be to model 
no GHG standards at all, and to allow the OMEGA model to apply less 
emissions control technology to vehicles in each MY than in the prior 
MY (backsliding). For the analysis of this final action, we revised the 
OMEGA modeling assumptions to simulate the removal of all GHG standards 
for LD and MD vehicles, and revised the OMEGA model's run settings to 
allow backsliding.
    Some commenters raised concerns that the 2024 GHG Emission 
Standards Rules relied on IRA tax credits and noted that Congress 
subsequently eliminated or modified these tax credits in the OBBB. We 
agree that our modeling should reflect the actions signed into law in 
the OBBB. For the proposal, our modeling assumed all pertinent tax 
credits were removed. For this final analysis, we revised our analyses 
to align with the OBBB by removing the credits for purchasing (26 
U.S.C. 30D) and leasing (26 U.S.C. 45W) LD and MD BEVs; removing the 
vehicle purchase tax credits (26 U.S.C. 45W) for HD BEVs and HD FCEVs; 
removing the tax credit for electric vehicle supply equipment (EVSE) 
installation (26 U.S.C. 30C) for HD BEVs; and adjusting the phase-out 
of the advanced manufacturing production credit (26 U.S.C. 45X).

[[Page 7754]]

    We received comments suggesting that the Agency's baseline 
assumptions for future HD EV market penetration were inflated due to 
California's Advanced Clean Truck (ACT) regulation. Congress 
disapproved the EPA's waiver for the ACT rule under the CRA. We agree 
with the commenters that our modeling should reflect Congress' decision 
regarding the EPA waiver for the ACT regulation and therefore we have 
completely removed California's ACT regulation from the modeling for 
the final action analysis.
    We received conflicting comments related to consumer interest in 
EVs. Some stated that EV market share is and will be lower in the 
future than the EPA estimated in the 2024 GHG Emission Standards Rules 
and in the proposal. The main reasons cited by commenters were the 
passage of the OBBB and subsequent removal of IRA purchase and leasing 
tax credits leading to higher cost for consumers, the CRA resolution 
nullifying California's CAA preemption waiver for the Advanced Clean 
Cars (ACC) II regulation leading to decreased demand, and slower 
charging infrastructure development than estimated in the 2024 GHG 
Emission Standards Rules. On the other hand, some commenters stated 
that consumer demand for EVs is strong and growing, that states 
continue to provide incentives for EV purchases, and that there are 
continued strong investments in EV charging networks. After 
consideration of the comments, our assessment is that there is a 
reduced consumer interest in purchasing EVs overall. Therefore, we 
lowered the BEV acceptance parameter values in our modeling of this 
final action from those presented in the proposal.
    Some commenters criticized the EPA's analysis in the DRIA for 
including a scenario that they characterized as using arbitrarily low 
fuel prices, citing the scenario with gasoline prices set at $1 and 
$0.25 per gallon less than the Energy Information Administration's 
(EIA) Annual Energy Outlook (AEO) 2023 Reference case for gasoline and 
diesel, respectively. Commenters stated that EIA's AEO 2025 projections 
included an Alternative Transportation case that reflects many of the 
changes that are occurring in the transportation sector, including the 
removal of California's ACT, the EPA's 2024 GHG Emission Standards 
Rules, and NHTSA's 2024 final rule for CAFE standards for MYs 2027-
2032, as well as assuming a slower growth for IRA credit eligibility 
than assumed in the AEO 2025 Reference case. We agree that the 
Alternative Transportation case energy prices are appropriate to use in 
our modeling for the case where the standards are removed, and we 
included it in our modeling for the final action. We also have revised 
the low gasoline and diesel price scenario; instead of using a $1 or 
$0.25 per gallon across-the-board decrease, we use prices from the Low 
Oil Price case presented in AEO 2025. In summary, the modeling we 
conducted for the final action includes future gasoline, diesel, 
electricity, and hydrogen prices that reflect EIA's AEO 2025 
projections of the Reference, Alternative Transportation, and Low Oil 
Price cases.
    In the RIA, the EPA presents results from four scenarios using the 
same analytical methods the EPA used in the 2024 GHG Emission Standards 
Rules that project the costs and benefits from removing the GHG 
standards for LD, MD and HD vehicles and HD engines. The results of 
these scenarios are summarized in Table 13 and Table 14. Except as 
noted this section VIII.A, and as discussed in the RIA, the models, 
assumptions and inputs are the same as those used in the 2024 RIAs.
    The first scenario (A1) includes the revisions noted above, 
including the use of AEO 2025 Reference case fuel prices for the 
modeling of the no action case where the GHG standards remain in place, 
and the AEO 2025 Alternative Transportation fuel prices for modeling 
the action case where the GHG standards are removed. Recognizing the 
uncertainties related to projecting future gasoline and diesel prices, 
the second scenario (A2) considers the impacts under lower fuel prices, 
and uses AEO 2025's Low Oil Price case.
    In the NPRM, the EPA presented two scenarios accounting for only 
the first two and a half years of fuel savings in estimating the net 
monetized impact of removing the GHG emission standards. Commenters 
suggested the Agency's adjustment was arbitrary and unsupported. Some 
commenters stated that the savings that accrue after the first two and 
a half years are a real-world benefit to consumers and society and 
therefore should be included in the benefit-cost assessment. Other 
commenters stated that the EPA should account for more than the first 
two and a half years of fuel savings but should not account for the 
full lifetime of fuel savings. The Agency also received comments that 
the approach of only including the first two and a half years of fuel 
savings was specifically not appropriate to apply to HD vehicles 
because they are for-profit businesses that account for fuel and 
maintenance savings when making purchasing decisions. For the final 
action, we continue to present results representing both a full 
lifetime of fuel savings (scenarios A1 and A2) and only the first two 
and a half years of fuel savings. The third (A3) and fourth (A4) 
scenarios build on the first and second scenarios respectively, 
accounting for only the first two and a half years of fuel savings in 
estimating the net monetized impacts of this action. The EPA believes 
the presented results provide reasonable bounds for the impact of fuel 
savings on the net monetized impacts of this action. Table 13 and Table 
14 show the net present value of the monetized savings, costs, and net 
savings of the four scenarios presented at 7 and 3 percent discount 
rates, respectively.

[[Page 7755]]

[GRAPHIC] [TIFF OMITTED] TR18FE26.015

[GRAPHIC] [TIFF OMITTED] TR18FE26.016

    In Tables 15 and 16 we provide the estimated cost savings per 
vehicle at a seven percent net present value and a three percent net 
present value. As shown in the tables, the EPA's modeling projects this 
rule to result in about 469 million new combined LD, MD, and HD vehicle 
sales over the 2027 to 2055 time period under Scenarios A1 and A3, and 
about 472 million new combined LD, MD, and HD vehicle sales under 
Scenarios A2 and A4. With the estimated $730 billion reduction in 
vehicle technology cost at a seven percent discount rate, we estimate 
this action will result in an average cost reduction of $1,550 per 
vehicle under Scenarios A1 and A3. Under Scenarios A2 and A4 at a seven 
percent discount rate, the reduction in vehicle technology cost of 
about $750 billion are estimated to result in an average cost reduction 
of $1,600 per vehicle. With the estimated $1.09 trillion reduction in 
vehicle technology cost at a three percent discount rate for Scenarios 
A1 and A3, we estimate this action will result in an average cost 
reduction of $2,330 per vehicle. Under Scenarios A2 and A4 at a seven 
percent discount rate, the reduction in vehicle technology cost of 
about $1.14 trillion at a three percent discount rate are estimated to 
result in an average cost reduction of $2,420 per vehicle.

[[Page 7756]]

[GRAPHIC] [TIFF OMITTED] TR18FE26.017

[GRAPHIC] [TIFF OMITTED] TR18FE26.018

    Table 17 provides the GHG emission impacts in calendar year (CY) 
2055 by emission source due to this action. For motor vehicles, total 
GHG emissions increase by 410 million metric tons (MMT) in carbon 
dioxide equivalent (CO2e). Table 18 provides the cumulative 
GHG emissions impact from CY 2027 through CY 2055. The total GHG 
emissions are estimated to increase by 8,300 MMT CO2e.
[GRAPHIC] [TIFF OMITTED] TR18FE26.019


[[Page 7757]]


[GRAPHIC] [TIFF OMITTED] TR18FE26.020

    The EPA discussed air pollutants not being directly impacted by 
this rule (i.e., criteria pollutants and hazardous air pollutants) 
within other documents within the docket. The EPA is obligated to 
ensure the public is not misled regarding the level of scientific 
understanding and the implications of that science when developing 
policies and regulations. Historically, however, the EPA's analytical 
practices often provided the public with false precision and confidence 
regarding the monetized impacts of fine particulate matter 
(PM2.5) and ozone than the underlying science could fully 
support, especially as overall emissions have significantly decreased 
and impacts have become more uncertain. The EPA's use of benefit per 
ton (BPT) monetized values introduces additional uncertainty. Although 
intended as a screening tool when full-form photochemical modeling was 
not feasible, the BPT approach reduces complex spatial and atmospheric 
relationships into an average value per ton, which magnifies 
uncertainty in the resulting monetized estimates. Examples of 
uncertainties include but are not limited to epidemiological 
uncertainty (e.g., concentration-response functions); economic factors 
(e.g., discount rates, income growth, willingness-to-pay to avoid 
mortality risk); and methodological assumptions (e.g., health 
thresholds, linear relationships, spatial relationships).
    Despite these uncertainties, the EPA historically provided point 
estimates instead of just ranges or only quantifying emissions, which 
leads the public to believe the Agency has a better understanding of 
the monetized impacts of exposure to PM2.5 and ozone than it 
does in reality. Therefore, to rectify this error, the EPA is no longer 
monetizing benefits from PM2.5 and ozone but will continue 
to quantify the emissions until the Agency is confident enough in the 
modeling to properly monetize those impacts.

B. Executive Order 14192: Unleashing Prosperity Through Deregulation

    This action is an E.O. 14192 deregulatory action. For E.O. 14192 
regulatory accounting, the estimated present value and annualized value 
of the cost savings of this action are $769 billion and $54 billion, 
respectively (7 percent discount rate, 2024 dollars, 2024 present value 
year, perpetuity time horizon).\224\ OMB's guidance on implementing 
E.O. 14192 (M-25-20) requires that estimates of costs or cost savings 
cover the full duration of the expected effects of the action. In some 
cases, that may require projecting costs or cost savings beyond the 
standard analytic time horizon. For this action, the EPA extrapolates 
the stream of cost savings based on the final year of the modeling as a 
proxy for the long-run effects of this action on the vehicle fleet. A 
summary of the projected cost savings can be found in the RIA.
---------------------------------------------------------------------------

    \224\ The supporting documentation on how these values were 
estimates can be found in the Vehicle Rule FRM E.O. 14192 
Workbook.xlsx file found in the docket for this action.
---------------------------------------------------------------------------

C. Paperwork Reduction Act (PRA)

    The information collection activities in this action have been 
submitted for approval OMB under the PRA. The Information Collection 
Requests (ICR) that the EPA prepared have been assigned numbers as 
indicated below. You can find a copy of the Supporting Statements in 
the docket for this action, and they are briefly summarized here.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for the 
EPA's regulations in Title 40 of the CFR are listed in 40 CFR part 9. 
When OMB approves this ICR, the Agency will announce that approval in 
the Federal Register and publish a technical amendment to 40 CFR part 9 
to display the OMB control number for the approved information 
collection activities contained in this final action.
1. 2024 LD and MD Multi-Pollutant Emission Standards Rule
    The ICR document prepared by the EPA for removal of the light- and 
medium-duty vehicle GHG requirements has been assigned EPA ICR 2750.03, 
revising EPA ICR 2750.02 (OMB 2060-0764). You can find a copy of the 
ICR in the docket for this action and it is briefly summarized here. 
The information collection requirements are not enforceable until OMB 
approves them.
    The EPA is removing all regulations that require light- and medium-
duty vehicle manufacturers to measure, report, or comply with standards 
for GHG emissions. Information collected to assure compliance with 
those requirements is no longer needed under this final action. All 
other requirements covered by 2750.02 remain in effect.
    Respondents/affected entities: Light- and medium-duty vehicle 
manufacturers, alternative fuel converters, and independent commercial 
importers.
    Respondent's obligation to respond: This action relieves 
manufacturers of the burden to provide certain information to the EPA 
as part of their annual MY vehicle certification under CAA section 
208(a), which is required prior to entering vehicles into commerce. 
Participation in some programs is voluntary; but once a manufacturer 
has elected to participate, it must submit the required information.
    Estimated number of respondents: 35 affected entities.
    Frequency of response: Annually or on occasion, depending on the 
type of response.
    Revised total estimated burden: 138,443 hours (per year) for 
remaining regulatory requirements covered by this ICR. Burden is 
defined at 5 CFR 1320.3(b).
    Revised total estimated cost: $26.3 million per year for remaining 
regulatory requirements covered by this ICR, which includes an 
estimated $14.2 million annualized capital or operation and maintenance 
costs.
2. 2024 HD GHG Emission Standards Rule
    The ICR document prepared by the EPA for removal of the 2024 HD GHG 
Emission Standards Rule requirements has been assigned EPA ICR 2734.03, 
revising EPA ICR 2734.02 (OMB 2060-0753). You can find a copy of the 
ICR in the docket for this action and it is briefly summarized here. 
The information collection requirements are

[[Page 7758]]

not enforceable until OMB approves them.
    The EPA is removing all regulations that require HD motor vehicle 
and HD motor vehicle engine manufacturers to measure, report, or comply 
with the 2024 HD GHG Emission Standards Rule standards. Information 
collected to assure compliance with those requirements is no longer 
needed under this final action.
    Respondents/affected entities: Manufacturers of HD onroad vehicles.
    Respondent's obligation to respond: This action relieves 
manufacturers of the burden to provide certain information to the EPA 
as part of their annual MY engine and vehicle certification under CAA 
section 203(a), which is required prior to entering vehicles into 
commerce.
    Estimated number of respondents: 77 affected entities.
    Frequency of response: Originally expected to be one-time burden; 
now, no requirement to report.
    Revised total estimated burden: 0 hours. Burden is defined at 5 CFR 
1320.03(b).
    Revised total estimated cost: $0.
3. Nonroad Compression-Ignition Engines and On-Highway Heavy-Duty 
Engines, Supporting Statement for Information Collection Request (March 
2023 Revision)
    We are not acting on the proposed changes to this ICR document to 
ensure this ICR will continue to cover the information collection 
necessary to implement NHTSA's MD and HD fuel efficiency program. The 
proposed changes to the ICR document can be found at EPA ICR 1684.22, 
revising EPA ICR 1684.21 (OMB 2060-0287).
    The EPA is not acting on these revisions as they are no longer 
needed. As explained elsewhere in this preamble, in this final action 
we are not changing elements of the regulations that are necessary for 
programs unrelated to the GHG emission standards, including emission 
standards for criteria pollutants. We also are retaining most of the 
regulatory provisions cited by NHTSA for the administration of their 
fuel efficiency standards included in 49 CFR part 535. This includes 
the provisions that require manufacturers to submit their compliance 
data and information to the EPA and we will then issue a report to 
NHTSA with the information. However, we note that the EPA would no 
longer issue EPA certificates of conformity for GHG emissions.

D. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the EPA concludes that the impact of concern 
for this action is any significant adverse economic impact on small 
entities, and that the Agency is certifying that this action will not 
have a significant economic impact on a substantial number of small 
entities because the action relieves regulatory burden on the small 
entities subject to the action.
    The regulated entities that are subject to the regulations we are 
removing in this action are engine and vehicle manufacturers, 
alternative fuel converters, and independent commercial importers 
subject to GHG emission standards for vehicles. The Agency is 
certifying that this action will not have a significant economic impact 
on a substantial number of small entities because the action will 
relieve regulatory burden on all entities, including all small 
entities, subject to the current rules. This action removes portions of 
the regulations of the standard-setting parts directly related to GHG 
emission standards and compliance provisions for implementing the EPA's 
GHG engine and vehicle programs. We do not anticipate that there will 
be any significant adverse economic impact on directly regulated small 
entities as a result of these revisions. We have therefore concluded 
that this action will relieve regulatory burden for all directly 
regulated small entities. The EPA provides additional information on 
the RFA in chapter 7 of the RIA and in the Response to Comments for 
this final action.

E. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million 
(adjusted annually for inflation) or more (in 1995 dollars) as 
described in UMRA, 2 U.S.C. 1531-38, and does not significantly or 
uniquely affect small governments. The action imposes no enforceable 
duty on any state, local, or Tribal governments, and relieves duties 
with respect to the private sector.

F. Executive Order 13132: Federalism

    This action does not have federalism implications as specified in 
E.O. 13132. It does not have substantial direct effects on the states, 
on the relationship between the national government and the states, or 
on the distribution of power and responsibilities among the various 
levels of government.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have Tribal implications as specified in E.O. 
13175, entitled ``Consultation and Coordination with Indian Tribal 
Governments'' (65 FR 67249, Nov. 9, 2000). It does not have substantial 
direct effects on Tribal governments, on the relationship between the 
Federal government and Indian Tribes, or on the distribution of power 
and responsibilities between the Federal government and Indian Tribes, 
as specified in E.O. 13175. Thus, E.O. 13175 does not apply to this 
action.
    However, consistent with the EPA Policy on Consultation with Indian 
Tribes, the EPA initiated a Tribal consultation and coordination 
process after proposing this action by sending a ``Notification of 
Consultation and Coordination'' letter, dated July 29, 2025, to all 574 
Federally recognized Tribes. The letter invited Tribal leaders and 
designated consultation representatives to participate in the Tribal 
consultation and coordination process. The Nez Perce Nation, 
Confederated Tribes of Grand Ronde, Snoqualmie Tribe, and Pueblo of San 
Felipe requested to consult with the EPA. The EPA consulted with 
officials of these Tribes to permit meaningful and timely input during 
the development of this action. A summary of that consultation is 
provided in the Response to Comments document for this final action.

H. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    E.O. 13045 directs Federal agencies to include an evaluation of the 
health and safety effects of the planned regulation on children in 
Federal health and safety standards and explain why the regulation is 
preferable to potentially effective and reasonably feasible 
alternatives. This action is subject to the E.O. because it is an 
economically significant regulatory action under E.O. 12866, and the 
EPA believes the environmental health or safety risks may have a 
disproportionate effect on children, although as explained in the 
preamble eliminating all GHG emissions from all vehicles would have a 
de minimis impact on public health or welfare. The 2021 Policy on 
Children's Health also applies to this action.\225\
---------------------------------------------------------------------------

    \225\ U.S. Environmental Protection Agency. (2021). 2021 Policy 
on Children's Health: https://www.epa.gov/system/files/documents/2021-10/2021-policy-on-childrens-health.pdf.

---------------------------------------------------------------------------

[[Page 7759]]

    Although the GHG emissions at issue in this rulemaking do not have 
direct impacts on human health, we acknowledge the possibility that 
this action could impact emissions of criteria pollutants and air 
toxics. Children are not expected to experience greater ambient 
concentrations of air pollutants than the general population. 
Additionally, as discussed in the preamble, there are safety benefits 
from this final action that would benefit children as they are more 
susceptible to grievous injuries from less safe motor vehicles.
    We note that, as explained above, this action would not impact 
separate emission standards for criteria pollutants by the EPA or 
separate standards set by NHTSA. At this time, the EPA does not believe 
that the action would have a material adverse impact on the health of 
individuals with respect to non-GHG air pollutants, including on 
children, because the EPA anticipates that the impacts of repealing GHG 
emission regulations would have only marginal and incidental impacts on 
the emission of non-GHG air pollutants. Potential health impacts of 
such air pollutants will continue to be controlled through direct 
emissions limits and several other programs that target regional and 
national air quality, including the NAAQS program.

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action, which is a significant regulatory action under E.O. 
12866, would have a significant effect on the supply, distribution or 
use of energy. The EPA has prepared a Statement of Energy Effects for 
this action as follows.
    This action removes the GHG emission standards and related 
compliance provisions for light-, medium-, and heavy-duty engines and 
vehicles. This action will result in fewer electric vehicles and more 
ICE vehicles produced, as discussed in the RIA, and therefore an 
estimated increase in the consumption of petroleum and an estimated 
reduction in the consumption of electricity.

J. National Technology Transfer and Advancement Act (NTTAA) and 1 CFR 
Part 51

    This action involves technical standards. However, the changes to 
the regulation include removing GHG emission standards and the 
corresponding measurement and compliance procedures, some of which also 
involve removing existing references to voluntary consensus standards 
and other technical standards. This action does not include any new 
requirements or new references to technical standards.
    The following standards appear in the amendatory text of this 
document and were previously approved for the locations in which they 
appear: 13 CCR 1968.2, 13 CCR 1971.1, ASTM D1945, SAE J1711 FEB2023, 
SAE J1979-2, GEM version 2.0.1, GEM Phase 2, Version 3.0, GEM Phase 2, 
Version 3.5.1, GEM Phase 2, Version 4.0, GEM HIL model 3.8.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action meets the criteria set forth in 5 U.S.C. 
804(2).

List of Subjects

40 CFR Part 85

    Confidential business information, Greenhouse gases, Imports, 
Labeling, Motor vehicle pollution, Reporting and recordkeeping 
requirements, Research warranties.

40 CFR Part 86

    Environmental protection, Administrative practice and procedure, 
Confidential business information, Incorporation by reference, 
Labeling, Motor vehicle pollution, Reporting and recordkeeping 
requirements.

40 CFR Part 600

    Environmental protection, Administrative practice and procedure, 
Electric power, Fuel economy, Greenhouse gases, Incorporation by 
reference, Labeling, Reporting and recordkeeping requirements.

40 CFR Part 1036

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Greenhouse 
gases, Incorporation by reference, Labeling, Motor vehicle pollution, 
Reporting and recordkeeping requirements, Warranties.

40 CFR Part 1037

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Confidential business information, Incorporation 
by reference, Labeling, Motor vehicle pollution, Reporting and 
recordkeeping requirements, Warranties.

40 CFR Part 1039

    Administrative practice and procedure, Air pollution control, 
Confidential business information, Imports, Labeling, Penalties, 
Reporting and recordkeeping requirements, Warranties.

Lee Zeldin,
Administrator.

    For the reasons set out in the preamble, we are amending title 40, 
chapter I of the Code of Federal Regulations as set forth below.

PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES

0
1. The authority citation for part 85 continues to read as follows:

    Authority:  42 U.S.C. 7401-7671q.


Sec.  85.525  [Amended]

0
2. Amend Sec.  85.525 by removing and reserving paragraph (b).

0
3. Amend Sec.  85.1515 by revising paragraph (d) to read as follows:


Sec.  85.1515  Emission standards and test procedures applicable to 
imported nonconforming motor vehicles and motor vehicle engines.

* * * * *
    (d) An ICI may not certify using nonconformance penalties.


Sec.  85.1803  [Amended]

0
4. Amend Sec.  85.1803 by removing paragraph (e).


Sec.  85.1805  [Amended]

0
5. Amend Sec.  85.1805 by removing and reserving paragraph (b).

0
6. Amend Sec.  86.1902 by removing and reserving paragraph (b)(2) and 
revising paragraph (d). The revision reads as follows:


Sec.  85.1902  Definitions.

* * * * *
    (d) Voluntary emissions recall means a repair, adjustment, or 
modification program voluntarily initiated and conducted by a 
manufacturer to remedy any emission-related defect for which direct 
notification of vehicle or engine owners has been provided.
* * * * *

0
7. Amend Sec.  85.2103 by revising paragraph (d)(1)(v) and removing 
paragraph (d)(3). The revision reads as follows:


Sec.  85.2103  Emission warranty.

* * * * *
    (d) * * *
    (1) * * *
    (v) Batteries serving as a Renewable Energy Storage System for 
electric vehicles and plug-in hybrid electric vehicles, along with all 
components needed to charge the system, store energy, and transmit 
power to move the

[[Page 7760]]

vehicle. This paragraph (d)(1)(v) is optional before model year 2027 
for light-duty vehicles and light-duty trucks at or below 6,000 pounds 
GVWR. This paragraph (d)(1)(v) is optional for vehicles above 6,000 
pounds GVWR until they are first certified to Tier 4 
NMOG+NOX bin standards under 40 CFR 86.1811-27(b), not later 
than model year 2031.
* * * * *

PART 86--CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES 
AND ENGINES

0
8. The authority citation for part 86 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.


Sec.  86.1  [Amended]

0
9. Amend Sec.  86.1 by removing and reserving paragraphs (c)(2) and (3) 
and (f)(3), (17), (21), and (22) and removing paragraph (h).

0
10. Amend Sec.  86.007-11 by revising paragraphs (g)(1) and (6) to read 
as follows:


Sec.  86.007-11  Emission standards and supplemental requirements for 
2007 and later model year diesel heavy-duty engines and vehicles.

* * * * *
    (g) * * *
    (1) The engines must be of a configuration that is identical to one 
that is certified under 40 CFR part 1039, and must be certified with a 
Family Emission Limit for PM of 0.020 g/kW-hr using the same duty 
cycles that apply under 40 CFR part 1039.
* * * * *
    (6) Engines certified under this paragraph (g) may not generate or 
use emission credits under this part or under 40 CFR part 1039.
* * * * *

0
11. Amend Sec.  86.008-10 by revising paragraph (g)(6) to read as 
follows:


Sec.  86.008-10  Emission standards for 2008 and later model year Otto-
cycle heavy-duty engines and vehicles.

* * * * *
    (g) * * *
    (6) Engines certified under this paragraph (g) may not generate or 
use emission credits under this part.
* * * * *

0
12. Amend Sec.  86.1801-12 by:
0
a. Removing and reserving paragraph (a)(2)(ii)(B);
0
b. Revising paragraphs (a)(3), (b), and (i); and
0
c. Removing paragraphs (j) and (k).
    The revisions read as follows:


Sec.  86.1801-12  Applicability.

    (a) * * *
    (3) The provisions of this subpart do not apply to heavy-duty 
vehicles above 14,000 pounds GVWR (see Sec.  86.016-1 and 40 CFR parts 
1036 and 1037), except as follows:
    (i) Heavy-duty vehicles above 14,000 pounds GVWR and at or below 
19,500 pounds GVWR may be optionally certified to the exhaust emission 
standards in this subpart if they are properly included in a test group 
with similar vehicles at or below 14,000 pounds GVWR. Emission 
standards apply to these vehicles as if they were Class 3 medium-duty 
vehicles.
    (ii) [Reserved]
    (iii) Evaporative and refueling emission standards apply for heavy-
duty vehicles above 14,000 pounds GVWR as specified in 40 CFR 1037.103.
    (4) If you optionally certify vehicles to standards under this 
subpart, those vehicles are subject to all the regulatory requirements 
as if the standards were mandatory.
    (b) Relationship to 40 CFR parts 1036 and 1037. If any heavy-duty 
vehicle is not subject to standards and certification requirements 
under this subpart, the vehicle and its installed engine are instead 
subject to standards and certification requirements under 40 CFR parts 
1036 and 1037, as applicable. If you optionally certify engines or 
vehicles to standards under 40 CFR part 1036 or 40 CFR part 1037, 
respectively, those engines or vehicles are subject to all the 
regulatory requirements in 40 CFR parts 1036 and 1037 as if they were 
mandatory.
* * * * *
    (i) Types of pollutants. Criteria pollutant standards apply for 
NOX, NMOG, HC, formaldehyde, PM, and CO, including exhaust, 
evaporative, and refueling emission standards. These pollutants are 
sometimes described collectively as ``criteria pollutants'' because 
they are either criteria pollutants under the Clean Air Act or 
precursors to the criteria pollutants ozone and PM.

0
13. Amend Sec.  86.1803-01 by:
0
a. Removing the definitions of ``AC1'', ``AC2'', ``Air Conditioning 
Idle Test'', ``Base level'', ``Base tire'', ``Base vehicle'', 
``Combined CO2'', ``Combined CREE'', and ``Configuration'';
0
b. Revising the definition of ``Defeat device'';
0
c. Removing and reserving paragraph (1) of the definition of 
``Emergency vehicle'';
0
d. Revising the definition of ``Engine code'';
0
e. Removing the definition of ``Footprint'', ``Full size pickup 
truck'', ``Mild hybrid electric vehicle'', ``Strong hybrid electric 
vehicle'', ``Subconfiguration'', ``Track width'', and ``Transmission 
class''; and
0
f. Adding a definition of ``Work factor'' in alphabetical order.
    The revisions and addition read as follows:


Sec.  86.1803-01  Definitions.

* * * * *
    Defeat device means an auxiliary emission control device (AECD) 
that reduces the effectiveness of the emission control system under 
conditions which may reasonably be expected to be encountered in normal 
vehicle operation and use, unless:
    (1) Such conditions are substantially included in driving cycles 
specified in this subpart or the fuel economy test procedures in 40 CFR 
part 600;
    (2) The need for the AECD is justified in terms of protecting the 
vehicle against damage or accident;
    (3) The AECD does not go beyond the requirements of engine 
starting; or
    (4) The AECD applies only for emergency vehicles and the need is 
justified in terms of preventing the vehicle from losing speed, torque, 
or power due to abnormal conditions of the emission control system, or 
in terms of preventing such abnormal conditions from occurring, during 
operation related to emergency response. Examples of such abnormal 
conditions may include excessive exhaust backpressure from an 
overloaded particulate trap, and running out of diesel exhaust fluid 
for engines that rely on urea-based selective catalytic reduction.
* * * * *
    Engine code means a unique combination within a test group of 
displacement, fuel injection (or carburetor) calibration, choke 
calibration, distributor calibration, auxiliary emission control 
devices, and other engine and emission control system components 
specified by the Administrator. For electric vehicles, engine code 
means a unique combination of manufacturer, electric traction motor, 
motor configuration, motor controller, and energy storage device.
* * * * *
    Work factor, WF, means the characteristic value representing a 
vehicle's work potential, calculated to the nearest pound using the 
following equation:

WF = 0.75 x (GVWR - Curb Weight + xwd) + 0.25 x (GCWR - GVWR)

Where:

xwd = 500 pounds if the vehicle has four-wheel drive or all-wheel 
drive; xwd = 0 pounds for all other vehicles.

[[Page 7761]]


* * * * *

0
14. Amend Sec.  86.1805-12 by revising paragraph (a) to read as 
follows:


Sec.  86.1805-12  Useful life.

    (a) Except as permitted under paragraph (b) of this section or 
required under paragraphs (c) and (d) of this section, the full useful 
life for all LDVs and LLDTs is a period of use of 10 years or 120,000 
miles, whichever occurs first. The full useful life for all HLDTs, 
MDPVs, and complete heavy-duty vehicles is a period of 11 years or 
120,000 miles, whichever occurs first. These full useful life values 
apply to all exhaust, evaporative and refueling emission requirements 
except for standards which are specified to only be applicable at the 
time of certification.
* * * * *

0
15. Revise Sec.  86.1805-17 to read as follows:


Sec.  86.1805-17   Useful life.

    (a) General provisions. The useful life values specified in this 
section apply for all exhaust, evaporative, refueling, and OBD emission 
requirements described in this subpart, except for standards that are 
specified to apply only at certification. Useful life values are 
specified as a given number of calendar years or miles of driving, 
whichever comes first.
    (b) [Reserved]
    (c) Cold temperature emission standards. The cold temperature NMHC 
emission standards in Sec.  86.1811-17 apply for a useful life of 10 
years or 120,000 miles for LDV and LLDT, and 11 years or 120,000 miles 
for HLDT and HDV. The cold temperature CO emission standards in Sec.  
86.1811-17 apply for a useful life of 5 years or 50,000 miles.
    (d) Criteria pollutants. The useful life provisions of this 
paragraph (d) apply for all emission standards not covered by paragraph 
(c) of this section. This paragraph (d) applies for the cold 
temperature emission standards in Sec.  86.1811-27(c). Except as 
specified in paragraph (f) of this section and in Sec.  Sec.  86.1811, 
86.1813, and 86.1816, the useful life for LDT2, HLDT, MDPV, and HDV is 
15 years or 150,000 miles. The useful life for LDV and LDT1 is 10 years 
or 120,000 miles. Manufacturers may optionally certify LDV and LDT1 to 
a useful life of 15 years or 150,000 miles, in which case the longer 
useful life would apply for all the standards and requirements covered 
by this paragraph (d).
    (e) Intermediate useful life. Where exhaust emission standards are 
specified for an intermediate useful life, these standards apply for 
five years or 50,000 miles.

0
16. Amend Sec.  86.1806-27 by adding paragraphs (a)(9) through (13) to 
read as follows:


Sec.  86.1806-27  Onboard diagnostics.

* * * * *
    (a) * * *
    (9) The definition of ``Active Off-Cycle Credit Technology'' in 13 
CCR 1968.2(c) does not apply.
    (10) The vehicle operations and control strategies standardization 
requirements in 13 CCR 1968.2 (g)(6.3), (6.4), (6.5), (6.8), (6.9), 
(6.10), and (6.11) do not apply.
    (11) The data reporting and storage requirements in 13 CCR 
1968.2(h)(6.1) related to the standardization requirements in 13 CCR 
1968.2(g)(8.1) do not apply.
    (12) The certification documentation requirement related to 
``Active Off-Cycle Credit Technologies'' in 13 CCR 1968.2(i)(2.28) does 
not apply.
    (13) The monitoring system demonstration requirements in 13 CCR 
1968.2(h)(5.3.1)(D) and (5.3.2)(A)(iii) related to CO2 
emission data does not apply.
* * * * *


Sec.  86.1807-01  [Amended]

0
17. Amend Sec.  86.1807-01 By Removing And Reserving Paragraph 
(A)(3)(IV).

0
18. Amend Sec.  86.1809-12 by revising paragraph (d)(1) to read as 
follows:


Sec.  86.1809-12  Prohibition of defeat devices.

* * * * *
    (d) * * *
    (1) The manufacturer must show to EPA's satisfaction that the 
vehicle design does not incorporate strategies that unnecessarily 
reduce emission control effectiveness exhibited over the driving cycles 
specified in this subpart or the fuel economy test procedures in 40 CFR 
part 600 when the vehicle is operated under conditions that may 
reasonably be expected to be encountered in normal operation and use.
* * * * *

0
19. Amend Sec.  86.1810-09 by revising paragraph (f)(2) to read as 
follows:


Sec.  86.1810-09   General standards; increase in emissions; unsafe 
condition; waivers.

* * * * *
    (f) * * *
    (2) For vehicles that comply with the cold temperature NMHC 
standards described in Sec.  86.1811-10(g), manufacturers must submit 
an engineering evaluation indicating that common calibration approaches 
are utilized at high altitudes (except when there are specific high 
altitude calibration needs to deviate from low altitude emission 
control practices). Any deviation from low altitude emission control 
practices must be included in the auxiliary emission control device 
(AECD) descriptions submitted at certification. Any AECD specific to 
high altitude must require engineering emission data for EPA evaluation 
to quantify any emission impact and validity of the AECD.
* * * * *

0
20. Amend Sec.  86.1810-17 by revising paragraph (j) to read as 
follows:


Sec.  86.1810-17  General requirements.

* * * * *
    (j) Small-volume manufacturers that modify a vehicle already 
certified by a different company may recertify that vehicle under this 
subpart S based on the vehicle supplier's compliance with fleet average 
standards for criteria exhaust emissions and evaporative emissions as 
follows:
    (1) The recertifying manufacturer must certify the vehicle at bin 
levels and family emission limits that are the same as or more 
stringent than the corresponding bin levels and family emission limits 
for the vehicle supplier.
    (2) The recertifying manufacturer must meet all the standards and 
requirements described in this subpart S, except for the fleet average 
standards for criteria exhaust emissions and evaporative emissions.
    (3) The vehicle supplier must send the small-volume manufacturer a 
written statement accepting responsibility to include the subject 
vehicles in the vehicle supplier's exhaust and evaporative fleet 
average calculations in Sec. Sec.  86.1860-17 and 86.1864-10.
    (4) The small-volume manufacturer must describe in the application 
for certification how the two companies are working together to 
demonstrate compliance for the subject vehicles. The application must 
include the statement from the vehicle supplier described in paragraph 
(j)(3) of this section.
    (5) The vehicle supplier must include a statement that the vehicle 
supplier is including the small volume manufacturer's sales volume and 
emissions levels in the vehicle supplier's fleet average reports under 
Sec. Sec.  86.1860-17 and 86.1864-10.
* * * * *

0
21. Amend Sec.  86.1811-17 by revising paragraph (a) to read as 
follows:

[[Page 7762]]

Sec.  86.1811-17  Exhaust emission standards for light-duty vehicles, 
light-duty trucks and medium-duty passenger vehicles.

    (a) Applicability and general provisions. This section describes 
exhaust emission standards that apply for model year 2017 and later 
light-duty vehicles, light-duty trucks, and medium-duty passenger 
vehicles. MDPVs are subject to all the same emission standards and 
certification provisions that apply to LDT4. Some of the provisions of 
this section also apply to heavy-duty vehicles as specified in Sec.  
86.1816. See Sec.  86.1813 for evaporative and refueling emission 
standards. This section may apply to vehicles from model years earlier 
than 2017 as specified in paragraph (b)(11) of this section.
* * * * *


Sec.  86.1811-27   [AMENDED]

0
22. Amend Sec.  86.1811-27 by removing paragraph (a)(4).


Sec.  86.1815-27  [Removed]

0
23. Remove Sec.  86.1815-27.

0
24. Amend Sec.  86.1816-18 by revising paragraph (a) to read as 
follows:


Sec.  86.1816-18  Emission standards for heavy-duty vehicles.

    (a) Applicability and general provisions. This section describes 
Tier 3 exhaust emission standards for complete heavy-duty vehicles. 
These standards are optional for incomplete heavy-duty vehicles and for 
heavy-duty vehicles above 14,000 pounds GVWR as described in Sec.  
86.1801. See Sec.  86.1813 for evaporative and refueling emission 
standards. This section starts to apply in model year 2018, except that 
the provisions may apply to vehicles before model year 2018 as 
specified in paragraph (b)(11) of this section. This section applies 
for model year 2027 and later vehicles only as specified in Sec.  
86.1811-27. Separate requirements apply for MDPV as specified in Sec.  
86.1811. See subpart A of this part for requirements that apply for 
incomplete heavy-duty vehicles and for heavy-duty engines certified 
independent of the chassis. The following general provisions apply:
    (1) Test all vehicles as described in this section using a chassis 
dynamometer; establish appropriate load settings based on adjusted 
loaded vehicle weight (see Sec.  86.1803).
    (2) Some provisions apply differently depending on the vehicle's 
power-to-weight ratio. Determine a vehicle's power-to-weight ratio by 
dividing the engine's rated power by the vehicle's GVWR (in hp/pound). 
For purposes of this section, if a test group includes multiple vehicle 
configurations, use the vehicle with the highest power-to-weight ratio 
to characterize the test group.
    (3) Use E10 test fuel as required in Sec.  86.113, except as 
specified in this section.
    (4) Measure emissions from hybrid electric vehicles (including 
plug-in hybrid electric vehicles) as described in 40 CFR part 1066, 
subpart F, except that these procedures do not apply for plug-in hybrid 
electric vehicles during charge-depleting operation.
* * * * *


Sec.  Sec.  86.1818-12 And 86.1819-14  [Removed]

0
25. Remove Sec. Sec.  86.1818-12 And 86.1819-14.

0
26. Amend Sec.  86.1822-01 by revising paragraph (b) to read as 
follows:


Sec.  86.1822--01   Durability data vehicle selection.

* * * * *
    (b) The manufacturer may select, using good engineering judgment, 
an equivalent or worst-case vehicle configuration in lieu of testing 
the vehicle selected in paragraph (a) of this section. Carryover data 
satisfying the provisions of Sec.  86.1839-01 may also be used in lieu 
of testing the vehicle configuration selected in paragraph (a) of this 
section.


Sec.  86.1823-08  [Amended]

0
27. Amend Sec.  86.1823-08 by removing and reserving paragraph (M).

0
28. Amend Sec.  86.1827-01 by revising paragraph (a)(5) to read as 
follows:


Sec.  86.1827-01   Test group determination.

* * * * *
    (a) * * *
    (5) Subject to the same emission standards, or FEL in the case of 
cold temperature NMHC or NMOG+NOX standards, except that a 
manufacturer may request to group vehicles into the same test group as 
vehicles subject to more stringent standards, so long as all the 
vehicles within the test group are certified to the most stringent 
standards applicable to any vehicle within that test group. For 
example, manufacturers may include medium-duty vehicles at or below 
22,000 pounds GCWR in the same test group with medium-duty vehicles 
above 22,000 pounds GCWR, but all vehicles included in the test group 
are then subject to the off-cycle emission standards and testing 
requirements described in Sec.  86.1811-27(e). Light-duty trucks and 
light-duty vehicles may be included in the same test group if all 
vehicles in the test group are subject to the same criteria exhaust 
emission standards.
* * * * *

0
29. Amend Sec.  86.1828-01 by revising paragraph (e) to read as 
follows:


Sec.  86.1828-01   Emission data vehicle selection.

* * * * *
    (e) Alternative vehicle configurations. The manufacturer may use 
good engineering judgment to select an equivalent or worst-case vehicle 
configuration in lieu of testing the vehicle selected in paragraphs (a) 
through (c) of this section. Carryover data satisfying the provisions 
of Sec.  86.1839 may also be used in lieu of testing the vehicle 
configuration selected in paragraphs (a) through (c) of this section.
* * * * *

0
30. Amend Sec.  86.1829-15 by:
0
a. Removing and reserving paragraph (a)(2).
0
b. Revising paragraph (d)(3); and
0
c. Removing and reserving paragraph (d)(6).
    The revisions read as follows:


Sec.  86.1829-15  Durability and emission testing requirements; 
waivers.

* * * * *
    (d) * * *
    (3) Manufacturers may omit PM measurements for fuel economy testing 
conducted in addition to the testing needed to demonstrate compliance 
with the PM emission standards.
* * * * *

0
31. Amend Sec.  86.1830-01 by revising paragraphs (a)(3) and (c)(2) to 
read as follows:


Sec.  86.1830-01  Acceptance of vehicles for emission testing.

    (a) * * *
    (3) Test vehicles must have air conditioning installed and 
operational if that vehicle configuration is available with air 
conditioning. Optional equipment must be installed or represented on 
test vehicles according to the provisions of Sec.  86.1832-01.
* * * * *
    (c) * * *
    (2) Within a durability group, the manufacturer may alter any 
emission data vehicle (or other vehicles such as current or previous 
model year emission data vehicles, running change vehicles, fuel 
economy data vehicles, and development vehicles) in lieu of building a 
new test vehicle providing that the modification will not impact the 
representativeness of the vehicle's test results. Manufacturers shall 
use good engineering judgment in making

[[Page 7763]]

such determinations. Development vehicles which were used to develop 
the calibration selected for emission data testing may not be used as 
the EDV for that vehicle configuration. Vehicles from outside the 
durability group may be altered with advance approval of the 
Administrator.
* * * * *

0
32. Amend Sec.  86.1835-01 by revising paragraphs (a)(4), (b)(3), and 
(c) to read as follows:


Sec.  86.1835-01  Confirmatory certification testing.

    (a) * * *
    (4) Retesting for fuel economy may be conducted under the 
provisions of 40 CFR 600.008-08.
    (b) * * *
    (3) For light-duty vehicles, light-duty trucks, and medium-duty 
passenger vehicles the manufacturer shall conduct a retest of the FTP 
or highway test if the difference between the fuel economy of the 
confirmatory test and the original manufacturer's test equals or 
exceeds three percent (or such lower percentage to be applied 
consistently to all manufacturer conducted confirmatory testing as 
requested by the manufacturer and approved by the Administrator).
    (i) For use in the fuel economy program described in 40 CFR part 
600, the manufacturer may, in lieu of conducting a retest, accept as 
official the lower of the original and confirmatory test fuel economy 
results.
    (ii) The manufacturer shall conduct a second retest of the FTP or 
highway test if the fuel economy difference between the second 
confirmatory test and the original manufacturer test equals or exceeds 
three percent (or such lower percentage as requested by the 
manufacturer and approved by the Administrator) and the fuel economy 
difference between the second confirmatory test and the first 
confirmatory test equals or exceeds three percent (or such lower 
percentage as requested by the manufacturer and approved by the 
Administrator). In lieu of conducting a second retest, the manufacturer 
may accept as official (for use in the fuel economy program) the lowest 
fuel economy of the original test, the first confirmatory test, and the 
second confirmatory test fuel economy results.
    (c) Official test determination. (1) Whenever the Administrator or 
the manufacturer conducts a confirmatory test segment on a test 
vehicle, the results of that test segment, unless subsequently 
invalidated by the Administrator, shall comprise the official data for 
that test segment for the vehicle at the prescribed test point and the 
manufacturer's original test data for that test segment for that 
prescribed test point shall not be used in determining compliance with 
emission standards.
    (i) If the Administrator or the manufacturer conducts more than one 
passing, valid, confirmatory test, the results from the first passing, 
valid confirmatory test shall be considered official and used in 
determining compliance with emission standards.
    (ii) Official test results for fuel economy are determined in 
accordance with the provisions of Sec.  600.008-08 of this chapter.
    (iii) The Administrator may stop a test after any evaporative test 
segment and use as official data any valid results obtained up to that 
point in the test, as described in subpart B of this part.
    (2) Whenever the Administrator or the manufacturer does not conduct 
a confirmatory test on a test vehicle at a test point, the 
manufacturer's original test data will be accepted as the official data 
for that point.
    (i) If the Administrator makes a determination based on testing 
under paragraph (a) of this section (or other appropriate correlation 
test data), that there is a lack of correlation between the 
manufacturer's test equipment or procedures and the test equipment or 
procedures used by the Administrator, no manufacturer's test data will 
be accepted for purposes of certification until the reasons for the 
lack of correlation are determined and the validity of the data is 
established by the manufacturer.
    (ii) If the Administrator has reasonable basis to believe that any 
test data submitted by the manufacturer is not accurate or has been 
obtained in violation of any provisions of this subpart, the 
Administrator may refuse to accept that data as the official data 
pending retesting or submission of further information.
    (iii) If the manufacturer conducts more than one test on an 
emission data vehicle in the same vehicle configuration (excluding 
confirmatory tests run under paragraph (b) of this section), the data 
from the last test in that series of tests on that vehicle, will 
constitute the official data.
* * * * *


Sec.  86.1838-01  [Amended]

0
33. Amend Sec.  86.1838-01 by removing and reserving paragraph 
(B)(1)(I)(B).

0
34. Revise Sec.  86.1839-01 to read as follows:


Sec.  86.1839-01  Carryover of certification data.

    (a) In lieu of testing an emission-data or durability vehicle 
selected under Sec.  86.1822, Sec.  86.1828, or Sec.  86.1829, and 
submitting data therefrom, a manufacturer may submit exhaust emission 
data, evaporative emission data and/or refueling emission data, as 
applicable, on a similar vehicle for which certification has been 
obtained or for which all applicable data required under Sec.  86.1845 
has previously been submitted. To be eligible for this provision, the 
manufacturer must use good engineering judgment and meet the following 
criteria:
    (1) In the case of durability data, the manufacturer must determine 
that the previously generated durability data represent a worst case or 
equivalent rate of deterioration for all applicable emission 
constituents compared to the vehicle configuration selected for 
durability demonstration. Prior to certification, the Administrator may 
require the manufacturer to provide data showing that the distribution 
of catalyst temperatures of the selected durability vehicle 
configuration is effectively equivalent or lower than the distribution 
of catalyst temperatures of the vehicle configuration which is the 
source of the previously generated data.
    (2) In the case of emission data, the manufacturer must determine 
that the previously generated emissions data represent a worst case or 
equivalent level of emissions for all applicable emission constituents 
compared to the vehicle configuration selected for emission compliance 
demonstration.
    (b) In lieu of using newly aged hardware on an EDV as allowed under 
the provisions of Sec.  86.1823-08(f)(2), a manufacturer may use 
similar hardware aged for an EDV previously submitted, provided that 
the manufacturer determines that the previously aged hardware 
represents a worst case or equivalent rate of deterioration for all 
applicable emission constituents for durability demonstration.


Sec.  86.1841-01  [Amended]

0
35. Amend Sec.  86.1841-01 by removing and reserving paragraph (A)(3).

0
36. Amend Sec.  86.1844-01 by:
0
a. Removing and reserving paragraph (d)(7)(iv);
0
b. Revising paragraph (d)(15);
0
c. Removing and reserving paragraphs (d)(19) and (20); and
0
d. Revising paragraphs (e)(1) and (3).
    The revisions read as follows:


Sec.  86.1844-01  Information requirements: Application for 
certification and submittal of information upon request.

* * * * *
    (d) * * *
    (15) For vehicles with fuel-fired heaters, describe the control 
system

[[Page 7764]]

logic of the fuel-fired heater, including an evaluation of the 
conditions under which it can be operated and an evaluation of the 
possible operational modes and conditions under which evaporative 
emissions can exist. Use good engineering judgment to establish an 
estimated exhaust emission rate from the fuel-fired heater in grams per 
mile for each pollutant subject to a fleet average standard. Adjust 
fleet average compliance calculations in Sec. Sec.  86.1861 and 86.1864 
as appropriate to account for emissions from fuel-fired heaters. 
Describe the testing used to establish the exhaust emission rate.
* * * * *
    (e) * * *
    (1) Identify all emission-related components. Also identify 
software, AECDs, and other elements of design that are used to control 
criteria, exhaust or evaporative/refueling emissions. Identify the 
emission-related components by part number. Identify software by part 
number or other convention, as appropriate. Organize part numbers by 
engine code or other similar classification scheme.
* * * * *
    (3) Identification and description of all vehicles covered by each 
certificate of conformity to be produced and sold within the U.S. The 
description must be sufficient to identify whether any given in-use 
vehicle is, or is not, covered by a given certificate of conformity, 
the test group and the evaporative/refueling family to which it belongs 
and the standards that are applicable to it, by matching readily 
observable vehicle characteristics and information given in the 
emission control information label (and other permanently attached 
labels) to indicators in the Part 1 Application. For example, the 
description must include any components or features that contribute to 
measured or demonstrated control of emissions for meeting criteria 
exhaust or evaporative/refueling standards under this subpart. In 
addition, the description must be sufficient to determine for each 
vehicle covered by the certificate, all appropriate test parameters and 
any special test procedures necessary to conduct an official 
certification exhaust or evaporative emission test as was required by 
this subpart to demonstrate compliance with applicable emission 
standards. The description shall include, but is not limited to, 
information such as model name, vehicle classification (light-duty 
vehicle, light-duty truck, or complete heavy-duty vehicle), sales area, 
engine displacement, engine code, transmission type, tire size and 
parameters necessary to conduct exhaust emission tests such as 
equivalent test weight, curb and gross vehicle weight, test horsepower 
(with and without air conditioning adjustment), coast down time, shift 
schedules, cooling fan configuration, etc. and evaporative tests such 
as canister working capacity, canister bed volume, and fuel temperature 
profile. Actual values must be provided for all parameters.
* * * * *

0
37. Amend Sec.  86.1845-04 by:
0
a. Revising paragraphs (b)(5)(i) and (c)(5)(i);
0
b. Removing and reserving paragraph (g); and
0
c. Revising paragraph (h)(6) introductory text.
    The revisions read as follows:


Sec.  86.1845-04   Manufacturer in-use verification testing 
requirements.

* * * * *
    (b) * * *
    (5) Testing. (i) Each test vehicle of a test group shall be tested 
in accordance with the FTP and the US06 as described in subpart B of 
this part, when such test vehicle is tested for compliance with 
applicable exhaust emission standards under this subpart.
* * * * *
    (c) * * *
    (5) Testing. (i) Each test vehicle shall be tested in accordance 
with the FTP and the US06 as described in subpart B of this part when 
such test vehicle is tested for compliance with applicable exhaust 
emission standards under this subpart. One test vehicle from each test 
group shall be tested over the FTP at high altitude. The test vehicle 
tested at high altitude is not required to be one of the same test 
vehicles tested at low altitude. The test vehicle tested at high 
altitude is counted when determining the compliance with the 
requirements shown in Table S04-06 and Table S04-07 (tables 1 and 2 to 
paragraph (b)(3) of this section) or the expanded sample size as 
provided for in this paragraph (c).
* * * * *
    (h) * * *
    (6) Determine a reference CO2 emission rate, 
eCO2FTPFCL, as described in 40 CFR 1036.530 or based on 
measured values from any chassis FTP driving cycles under 40 CFR part 
1066, subpart I, that is used for reporting data from an emission data 
vehicle or a fuel economy data vehicle, as follows:

* * * * *

0
38. Amend Sec.  86.1846-01 by:
0
a. Revising paragraph (a); and
0
b. Removing and reserving paragraph (b)(2).
    The revision reads as follows:


Sec.  86.1846-01   Manufacturer in-use confirmatory testing 
requirements.

    (a) General requirements. (1) Manufacturers must test, or cause 
testing to be conducted, under this section when the emission levels 
shown by a test group sample from testing under Sec.  86.1845 exceeds 
the criteria specified in paragraph (b) of this section. The testing 
required under this section applies separately to each test group and 
at each test point (low and high mileage) that meets the specified 
criteria. The testing requirements apply separately for each model 
year.
    (2) The provisions of Sec.  86.1845-04(a)(3) regarding fuel sulfur 
effects apply equally to testing under this section.
* * * * *


Sec.  86.1847-01  [Amended]

0
39. Amend Sec.  86.1847-01 by removing and reserving paragraph (G).

0
40. Amend Sec.  86.1848-10 by:
0
a. Revising paragraphs (c)(2) and (5); and
0
b. Removing paragraphs (c)(9) and (10).
    The revisions read as follows:


Sec.  86.1848-10   Compliance with emission standards for the purpose 
of certification.

* * * * *
    (c) * * *
    (2) The manufacturer must comply with all certification and in-use 
emission standards contained in this subpart both during and after 
model year production.
* * * * *
    (5) The manufacturer must meet the in-use testing and reporting 
requirements contained in Sec. Sec.  86.1845, 86.1846, and 86.1847, as 
applicable.
* * * * *

0
41. Amend Sec.  86.1854-12 by revising paragraph (a)(2)(iv) to read as 
follows:


Sec.  86.1854-12   Prohibited acts.

    (a) * * *
    (2) * * *
    (iv) For a person to fail to establish or maintain records as 
required under Sec. Sec.  86.1844, 86.1862, and 86.1864 with regard to 
vehicles.
* * * * *

0
42. Revise and republish Sec.  86.1861-17 to read as follows:


Sec.  86.1861-17   How do the NMOG + NOX and evaporative emission 
credit programs work?

    You may use emission credits for purposes of certification to show 
compliance with the applicable fleet

[[Page 7765]]

average NMOG+NOX standards from Sec. thnsp;Sec.  86.1811 and 
86.1816 and the fleet average evaporative emission standards from Sec.  
86.1813 as described in 40 CFR part 1036, subpart H, with certain 
exceptions and clarifications as specified in this section. MDPVs are 
subject to the same provisions of this section that apply to LDT4.
    (a) Calculate emission credits as described in this paragraph (a) 
instead of using the provisions of 40 CFR 1036.705. Calculate positive 
or negative emission credits relative to the applicable fleet average 
standard. Calculate positive emission credits if your fleet average 
level is below the standard. Calculate negative emission credits if 
your fleet average value is above the standard. Calculate credits 
separately for each applicable fleet average standard and calculate 
total credits for each averaging set as specified in paragraph (b) of 
this section. Convert units from mg/mile to g/mile as needed for 
performing calculations. Calculate emission credits using the following 
equation, rounded to the nearest whole number:
Equation 1 to Paragraph (a)
Emission credit = Volume [middot] [Fleet average standard-Fleet average 
value]

Where:

Emission credit = The positive or negative credit for each discrete 
fleet average standard, in units of vehicle-grams per mile for 
NMOG+NOx and vehicle-grams per test for evaporative 
emissions.
Volume = Sales volume in a given model year from the collection of 
test groups or evaporative families covered by the fleet average 
value, as described in Sec.  86.1860.

    (b) The following restrictions apply instead of those specified in 
40 CFR 1036.740:
    (1) Except as specified in paragraph (b)(2) of this section, 
emission credits may be exchanged only within an averaging set, as 
follows:
    (i) HDV represent a separate averaging set with respect to all 
emission standards.
    (ii) Except as specified in paragraph (b)(1)(iii) of this section, 
light-duty program vehicles represent a single averaging set with 
respect to all emission standards. Note that FTP and SFTP credits for 
Tier 3 vehicles are not interchangeable.
    (iii) LDV and LDT1 certified to standards based on a useful life of 
120,000 miles and 10 years together represent a single averaging set 
with respect to NMOG+NOX emission standards. Note that FTP 
and SFTP credits for Tier 3 vehicles are not interchangeable.
    (iv) The following separate averaging sets apply for evaporative 
emission standards:
    (A) LDV and LDT1 together represent a single averaging set.
    (B) LDT2 represents a single averaging set.
    (C) HLDT represents a single averaging set.
    (D) HDV represents a single averaging set.
    (2) You may exchange evaporative emission credits across averaging 
sets as follows if you need additional credits to offset a deficit 
after the final year of maintaining deficit credits as allowed under 
paragraph (c) of this section:
    (i) You may exchange LDV/LDT1 and LDT2 emission credits.
    (ii) You may exchange HLDT and HDV emission credits.
    (3) Except as specified in paragraph (b)(4) of this section, 
credits expire after five years. For example, credits you generate in 
model year 2018 may be used only through model year 2023.
    (4) For the Tier 3 declining fleet average FTP and SFTP emission 
standards for NMOG+NOX described in Sec.  86.1811-17(b)(8), 
credits generated in model years 2017 through 2024 expire after eight 
years, or after model year 2030, whichever comes first; however, these 
credits may not be traded after five years. This extended credit life 
also applies for small-volume manufacturers generating credits under 
Sec.  86.1811-17(h)(1) in model years 2022 through 2024. Note that the 
longer credit life does not apply for heavy-duty vehicles, for vehicles 
certified under the alternate phase-in described in Sec.  86.1811-
17(b)(9), or for vehicles generating early Tier 3 credits under Sec.  
86.1811-17(b)(11) in model year 2017.
    (5) Tier 3 credits for NMOG+NOX may be used to 
demonstrate compliance with Tier 4 standards without adjustment, except 
as specified in Sec.  86.1811-27(b)(6)(ii).
    (6) A manufacturer may generate NMOG+NOX credits from 
model year 2027 through 2032 electric vehicles that qualify as MDPV and 
use those credits for certifying medium-duty vehicles, as follows:
    (i) Calculate generated credits separately for qualifying vehicles. 
Calculate generated credits by multiplying the applicable standard for 
light-duty program vehicles by the sales volume of qualifying vehicles 
in a given model year.
    (ii) Apply generated credits to eliminate any deficit for light-
duty program vehicles before using them to certify medium-duty 
vehicles.
    (iii) Apply the credit provisions of this section as specified, 
except that you may not buy or sell credits generated under this 
paragraph (b)(6).
    (iv) Describe in annual credit reports how you are generating 
certain credit quantities under this paragraph (b)(6). Also describe in 
your end of year credit report how you will use those credits for 
certifying light-duty program vehicles or medium-duty vehicles in a 
given model year.
    (c) The credit-deficit provisions 40 CFR 1036.745 apply to the 
NMOG+NOX and evaporative emission standards for Tier 3 and 
Tier 4 vehicles. Credit-deficit provisions are not affected by the 
transition from Tier 3 to Tier 4 standards.
    (d) The reporting and recordkeeping provisions of Sec.  86.1862 
apply instead of those specified in 40 CFR 1036.730 and 1036.735.
    (e) The provisions of 40 CFR 1036.625 do not apply.


Sec.  Sec.  86.1865-12, 86.1866-12, 86.1867-12, and 86.1867-
31  [Removed]

0
43. Remove Sec. Sec.  86.1865-12, 86.1866-12, 86.1867-12, and 86.1867-
31.

0
44. Amend Sec.  86.1868-12 by:
0
a. Revising the introductory text and paragraph (c);
0
b. Removing and reserving paragraph (d); and
0
c. Revising paragraphs (g) introductory text and (g)(3) introductory 
text.
    The revisions read as follows:


Sec.  86.1868-12  CO2 credits for improving the efficiency of air 
conditioning systems.

    The regulation at 40 CFR 600.510 describes how manufacturers may 
calculate fuel consumption improvement values based on improvements to 
air conditioning efficiency. This section describes how to calculate 
credits to determine the average fuel economy for comparing to the 
Corporate Average Fuel Economy standard. The provisions of this section 
do not apply for medium-duty vehicles. Credits shall be calculated 
according to this section for each air conditioning system that the 
manufacturer is using to generate credits. Manufacturers must validate 
credits under this section based on testing as described in paragraph 
(g) of this section. Starting in model year 2027, manufacturers may 
generate credits under this section only for vehicles propelled by 
internal combustion engines.
* * * * *
    (c) The total efficiency credits generated by an air conditioning 
system shall be calculated in megagrams separately for passenger 
automobiles and light trucks according to the following formula:

[[Page 7766]]

Equation 1 to Paragraph (c)
[GRAPHIC] [TIFF OMITTED] TR18FE26.021

Where:

Credit = the air conditioning efficiency credit in grams per mile 
determined in paragraph (b) of this section. Starting in model year 
2027, multiply the credit value for PHEV by (1-UF), where UF = the 
fleet utility factor established under 40 CFR 600.116-12(c)(1) or 
(c)(10)(iii) (weighted 55 percent city, 45 percent highway.
Production = The total number of passenger automobiles or light 
trucks, whichever is applicable, produced with the air conditioning 
system to which to the efficiency credit value from paragraph (b) of 
this section applies.
VLM = vehicle lifetime miles, which for passenger automobiles shall 
be 195,264 and for light trucks shall be 225,865.
* * * * *
    (g) For AC17 validation testing and reporting requirements, 
manufacturers must validate air conditioning efficiency credits by 
using the AC17 Test Procedure in 40 CFR 1066.845 as follows:
* * * * *
    (3) For the first model year for which an air conditioning system 
is expected to generate credits, the manufacturer must select for 
testing the projected highest-selling vehicle configuration within each 
combination of vehicle platform and air conditioning system (as those 
terms are defined in Sec.  86.1803). The manufacturer must test at 
least one unique air conditioning system within each vehicle platform 
in a model year, unless all unique air conditioning systems within a 
vehicle platform have been previously tested. A unique air conditioning 
system design is a system with unique or substantially different 
component designs or types and/or system control strategies (e.g., 
fixed-displacement vs. variable displacement compressors, orifice tube 
vs. thermostatic expansion valve, single vs. dual evaporator, etc.). In 
the first year of such testing, the tested vehicle configuration shall 
be the highest production vehicle configuration within each platform. 
In subsequent model years the manufacturer must test other unique air 
conditioning systems within the vehicle platform, proceeding from the 
highest production untested system until all unique air conditioning 
systems within the platform have been tested, or until the vehicle 
platform experiences a major redesign. Whenever a new unique air 
conditioning system is tested, the highest production vehicle 
configuration using that system shall be the vehicle selected for 
testing. Credits may continue to be generated by the air conditioning 
system installed in a vehicle platform provided that:
* * * * *

0
45. Amend Sec.  86.1869-12 by revising the introductory text and 
paragraphs (a), (b)(1) introductory text, (b)(2) introductory text, 
(b)(2)(v), (c) introductory text, and (e)(2)(i) to read as follows:


Sec.  86.1869-12   CO2 credits for off-cycle CO2 reducing technologies.

    The regulation at 40 CFR 600.510 describes how manufacturers may 
calculate fuel consumption improvement values based on vehicle 
improvements that are not reflected in testing to demonstrate 
compliance with exhaust emission standards. This section describes how 
to calculate credits to determine the average fuel economy for 
comparing to the Corporate Average Fuel Economy standard through model 
year 2032. The provisions of this section do not apply for medium-duty 
vehicles. Manufacturers may no longer generate credits under this 
section starting in model year 2027 for vehicles deemed to have zero 
tailpipe emissions and in model year 2033 for all other vehicles. 
Manufacturers may no longer generate credits under paragraphs (c) and 
(d) of this section for any type of vehicle starting in model year 
2027.
    (a) Manufacturers may generate credits for CO2-reducing 
technologies where the CO2 reduction benefit of the 
technology is not adequately captured on the Federal Test Procedure 
and/or the Highway Fuel Economy Test such that the technology would not 
be otherwise installed for purposes of meeting Corporate Average Fuel 
Economy standards. These technologies must have a measurable, 
demonstrable, and verifiable real-world CO2 reduction that 
occurs outside the conditions of the Federal Test Procedure and the 
Highway Fuel Economy Test. These optional credits are referred to as 
``off-cycle'' credits. The technologies must not be integral or 
inherent to the basic vehicle design, such as engine, transmission, 
mass reduction, passive aerodynamic design, and tire technologies. 
Technologies installed for non-off-cycle emissions related reasons are 
also not eligible as they would be considered part of the baseline 
vehicle design. The technology must not be inherent to the design of 
occupant comfort and entertainment features except for technologies 
related to reducing passenger air conditioning demand and improving air 
conditioning system efficiency. Notwithstanding the provisions of this 
paragraph (a), off-cycle menu technologies included in paragraph (b) of 
this section remain eligible for credits. Off-cycle technologies used 
to generate emission credits are considered emission-related components 
subject to applicable requirements and must be demonstrated to be 
effective for the full useful life of the vehicle. Unless the 
manufacturer demonstrates that the technology is not subject to in-use 
deterioration, the manufacturer must account for the deterioration in 
their analysis. Durability evaluations of off-cycle technologies may 
occur at any time throughout a model year, provided that the results 
can be factored into the data provided in the model year report. Off-
cycle credits may not be approved for crash-avoidance technologies, 
safety critical systems or systems affecting safety-critical functions, 
or technologies designed for the purpose of reducing the frequency of 
vehicle crashes. Off-cycle credits may not be earned for technologies 
installed on a motor vehicle to attain compliance with any vehicle 
safety standard or any regulation set forth in Title 49 of the Code of 
Federal Regulations. The manufacturer must use one of the three options 
specified in this section to establish off-cycle credits under this 
section.
    (b) * * *
    (1) The manufacturer may generate off-cycle credits for certain 
technologies as specified in this paragraph (b)(1). Technology 
definitions are in paragraph (b)(4) of this section. Calculated credit 
values shall be rounded to the nearest 0.1 grams/mile.
* * * * *
    (2) The maximum allowable off-cycle credit for the combined 
passenger automobile and light truck fleet

[[Page 7767]]

attributable to use of the default credit values in paragraph (b)(1) of 
this section is specified in paragraph (b)(2)(v) of this section. If 
the total of the off-cycle credit values from paragraph (b)(1) of this 
section does not exceed the specified off-cycle credit cap for any 
passenger automobile or light truck in a manufacturer's fleet, then the 
total off-cycle credits may be calculated according to paragraph (f) of 
this section. If the total of the off-cycle credit values from 
paragraph (b)(1) of this section exceeds the specified off-cycle credit 
cap for any passenger automobile or light truck in a manufacturer's 
fleet, then the gram per mile decrease for the combined passenger 
automobile and light truck fleet must be determined according to 
paragraph (b)(2)(ii) of this section to determine whether the 
applicable limitation has been exceeded.
* * * * *
    (v) The manufacturer's combined passenger automobile and light 
truck fleet average off-cycle credits attributable to use of the 
default credit values in paragraph (b)(1) of this section may not 
exceed the following specific values:

------------------------------------------------------------------------
                                                              Off-cycle
                         Model year                           credit cap
                                                               (g/mile)
------------------------------------------------------------------------
(A) 2023-2026..............................................           15
(B) 2027-2030..............................................           10
(C) 2031...................................................          8.0
(D) 2032...................................................          6.0
------------------------------------------------------------------------

* * * * *
    (c) Technology demonstration using EPA 5-cycle methodology. To 
demonstrate an off-cycle technology and to determine off-cycle credits 
using the EPA 5-cycle methodology, the manufacturer shall determine the 
off-cycle city/highway combined carbon-related exhaust emissions 
benefit by using the EPA 5-cycle methodology described in 40 CFR part 
600. This method may not be used for technologies that include elements 
(e.g., driver-selectable systems) that require additional analyses, 
data collection, projections, or modeling, or other assessments to 
determine a national average benefit of the technology. Testing shall 
be performed on a representative vehicle, selected using good 
engineering judgment, for each model type for which the credit is being 
demonstrated. The emission benefit of a technology is determined by 
testing both with and without the off-cycle technology operating. If a 
specific technology is not expected to change emissions on one of the 
five test procedures, the manufacturer may submit an engineering 
analysis to the EPA that demonstrates that the technology has no 
effect. If EPA concurs with the analysis, then multiple tests are not 
required using that test procedure; instead, only one of that test 
procedure shall be required--either with or without the technology 
installed and operating--and that single value will be used for all of 
the 5-cycle weighting calculations. Multiple off-cycle technologies may 
be demonstrated on a test vehicle. The manufacturer shall conduct the 
following steps and submit all test data to the EPA.
* * * * *
    (e) Review and approval process for off-cycle credits--(1) Initial 
steps required. (i) A manufacturer requesting off-cycle credits under 
the provisions of paragraph (c) of this section must conduct the 
testing and/or simulation described in that paragraph.
    (ii) A manufacturer requesting off-cycle credits under the 
provisions of paragraph (d) of this section must develop a methodology 
for demonstrating and determining the benefit of the off-cycle 
technology, and carry out any necessary testing and analysis required 
to support that methodology.
    (iii) A manufacturer requesting off-cycle credits under paragraphs 
(b), (c), or (d) of this section must conduct testing and/or prepare 
engineering analyses that demonstrate the in-use durability of the 
technology for the full useful life of the vehicle.
    (2) Data and information requirements. The manufacturer seeking 
off-cycle credits must submit an application for off-cycle credits 
determined under paragraphs (c) and (d) of this section. The 
application must contain the following:
    (i) A detailed description of the off-cycle technology and how it 
functions to improve fuel economy under conditions not represented on 
the FTP and HFET.
    (ii) A list of the vehicle model(s) which will be equipped with the 
technology.
    (iii) A detailed description of the test vehicles selected and an 
engineering analysis that supports the selection of those vehicles for 
testing.
    (iv) All testing and/or simulation data required under paragraph 
(c) or (d) of this section, as applicable, plus any other data the 
manufacturer has considered in the analysis.
    (v) For credits under paragraph (d) of this section, a complete 
description of the methodology used to estimate the off-cycle benefit 
of the technology and all supporting data, including vehicle testing 
and in-use activity data.
    (vi) An estimate of the off-cycle benefit by vehicle model and the 
fleetwide benefit based on projected sales of vehicle models equipped 
with the technology.
    (vii) An engineering analysis and/or component durability testing 
data or whole vehicle testing data demonstrating the in-use durability 
of the off-cycle technology components.
    (3) EPA review of the off-cycle credit application. Upon receipt of 
an application from a manufacturer, EPA will do the following:
    (i) Review the application for completeness and notify the 
manufacturer within 30 days if additional information is required.
    (ii) Review the data and information provided in the application to 
determine if the application supports the level of credits estimated by 
the manufacturer.
    (iii) For credits under paragraph (d) of this section, EPA will 
make the application available to the public for comment, as described 
in paragraph (d)(2) of this section, within 60 days of receiving a 
complete application. The public review period will be specified as 30 
days, during which time the public may submit comments. Manufacturers 
may submit a written rebuttal of comments for EPA consideration or may 
revise their application in response to comments. A revised application 
should be submitted after the end of the public review period, and EPA 
will review the application as if it was a new application submitted 
under this paragraph (e)(3).
    (4) EPA decision. (i) For credits under paragraph (c) of this 
section, EPA will notify the manufacturer of its decision within 60 
days of receiving a complete application.
    (ii) For credits under paragraph (d) of this section, EPA will 
notify the manufacturer of its decision after reviewing and evaluating 
the public comments. EPA will make the decision and rationale available 
to the public.
    (iii) EPA will notify the manufacturer in writing of its decision 
to approve or deny the application, and will provide the reasons for 
the decision. EPA will make the decision and rationale available to the 
public.
* * * * *


Sec.  86.1870-12  [Removed]

0
46. Remove Sec.  86.1870-12.

[[Page 7768]]

PART 600--FUEL ECONOMY AND GREENHOUSE GAS EXHAUST EMISSIONS OF 
MOTOR VEHICLES

0
47. The authority citation for part 600 continues to read as follows:

    Authority: 49 U.S.C. 32901--23919Q, Pub. L. 109-58.


0
48. Amend Sec.  600.001 by revising paragraphs (a) and (c) to read as 
follows:


Sec.  600.001  General applicability.

    (a) The provisions of this part apply to 2008 and later model year 
automobiles that are not medium duty passenger vehicles 
(MDPVFE), and to 2011 and later model year automobiles 
including MDPVFE. The test procedures in subpart B of this 
part also describe how manufacturers can test larger vehicles to meet 
fuel consumption standards under 49 CFR part 535.
* * * * *
    (c) Unless stated otherwise, references to fuel economy or fuel 
economy data in this part shall also be interpreted to mean the related 
exhaust emissions of CO2, HC, and CO, and where applicable 
for alternative fuel vehicles, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC 
and CH4.
* * * * *

0
49. Amend Sec.  600.002 by:
0
a. Revising the definitions of ``Carbon-related exhaust emissions 
(CREE)'' and ``Engine code'';
0
b. Removing the definition of ``Footprint''; and
0
c. Revising the definitions of ``Medium-duty passenger vehicle 
(MDPVFE)'', ``Subconfiguration'', and ``Vehicle 
configuration''.
    The revisions read as follows:


Sec.  600.002  Definitions.

* * * * *
    Carbon-related exhaust emissions (CREE) means the summation of the 
carbon-containing constituents of the exhaust emissions, with each 
constituent adjusted by a coefficient representing the carbon weight 
fraction of each constituent relative to the CO2 carbon 
weight fraction, as specified in Sec.  600.113.
* * * * *
    Engine code means one of the following:
    (1) For LDV, LDT, and MDPVFE, engine code means a unique 
combination, within a test group (as defined in Sec.  86.1803 of this 
chapter), of displacement, fuel injection (or carburetion or other fuel 
delivery system), calibration, distributor calibration, choke 
calibration, auxiliary emission control devices, and other engine and 
emission control system components specified by the Administrator. For 
electric vehicles, engine code means a unique combination of 
manufacturer, electric traction motor, motor configuration, motor 
controller, and energy storage device.
    (2) For MDV, engine code means the combination of both ``engine 
code'' and ``basic engine'' as defined for light-duty vehicles in this 
section.
* * * * *
    Medium-duty passenger vehicle (MDPVFE) means any motor 
vehicle rated at more than 8,500 pounds GVWR and less than 10,000 
pounds GVWR that is designed primarily to transport passengers, but 
does not include a vehicle that--
    (1) Is an ``incomplete truck,'' meaning any truck which does not 
have the primary load carrying device or container attached when it is 
first sold as a vehicle; or
    (2) Has a seating capacity of more than 12 persons; or
    (3) Is designed for more than 9 persons in seating rearward of the 
driver's seat; or
    (4) Is equipped with an open cargo area (for example, a pick-up 
truck box or bed) of 72.0 inches in interior length or more. A covered 
box not readily accessible from the passenger compartment will be 
considered an open cargo area for purposes of this definition. (See 
paragraph (1) of the definition of medium-duty passenger vehicle at 40 
CFR 86.1803-01).
* * * * *
    Subconfiguration means one of the following:
    (1) For LDV, LDT, and MDPVFE, subconfiguration means a 
unique combination within a vehicle configuration of equivalent test 
weight, road-load horsepower, and any other operational characteristics 
or parameters which the Administrator determines may significantly 
affect fuel economy or CO2 emissions within a vehicle 
configuration.
    (2) For MDV, subconfiguration means a unique combination within a 
vehicle configuration of equivalent test weight, road-load horsepower, 
and any other operational characteristics or parameters that may 
significantly affect CO2 emissions within a vehicle 
configuration. Note that equivalent test weight is based on a vehicle's 
Adjusted Loaded Vehicle Weight (rounded to the nearest 500-pound 
increment for values above 14,000 pounds); see 40 CFR 1066.805.
* * * * *
    Vehicle configuration means one of the following:
    (1) For LDV, LDT, and MDPVFE, vehicle configuration 
means a unique combination of basic engine, engine code, inertia weight 
class, transmission configuration, and axle ratio within a base level.
    (2) For MDV, vehicle configuration means a subclassification within 
a test group based on a unique combination of basic engine, engine 
code, transmission type and gear ratios, final drive ratio, and other 
parameters we designate.

* * * * *

0
50. Amend Sec.  600.006 by revising paragraphs (c)(5), (e), and 
(g)(3)(ii) to read as follows:


Sec.  600.006  Data and information requirements for fuel economy data 
vehicles.

* * * * *
    (c) * * *
    (5) Starting with the 2012 model year, the data submitted according 
to paragraphs (c)(1) through (4) of this section shall include total 
HC, CO, CO2, and, where applicable for alternative fuel 
vehicles, CH3OH, C2H5OH, 
C2H4O, HCHO, NMHC and CH4.
* * * * *
    (e) In lieu of submitting actual data from a test vehicle, a 
manufacturer may provide fuel economy and CO2 emission 
values derived from a previously tested vehicle, where the fuel economy 
and CO2 emissions are expected to be equivalent (or less 
fuel-efficient and with higher CO2 emissions). Additionally, 
in lieu of submitting actual data from a test vehicle, a manufacturer 
may provide fuel economy and CO2 emission values derived 
from an analytical expression, e.g., regression analysis. In order for 
fuel economy and CO2 emission values derived from analytical 
methods to be accepted, the expression (form and coefficients) must 
have been approved by the Administrator.
* * * * *
    (g) * * *
    (3) * * *
    (ii)(A) The manufacturer shall adjust all CO2 test data 
generated by vehicles with engine-drive system combinations with more 
than 6,200 miles by using the following equation:

ADJ4,000mi = TEST[0.979 + 5.25 [middot] 10-6 
[middot] (mi)]

Where:

ADJ4,000mi = CO2 emission data adjusted to 
4,000-mile test point.
TEST = Tested emissions value of CO2 in grams per mile.
mi = System miles accumulated at the start of the test rounded to 
the nearest whole mile.


[[Page 7769]]


    (B) Emissions test values and results used and determined in the 
calculations in this paragraph (g)(3)(ii) shall be rounded in 
accordance with Sec.  86.1837 of this chapter as applicable. Round 
results to the nearest gram per mile.
* * * * *

0
51. Amend Sec.  600.007 by revising paragraphs (b)(5) and (6), (c), and 
(f) introductory text to read as follows:


Sec.  600.007  Vehicle acceptability.

* * * * *
    (b) * * *
    (5) The calibration information submitted under Sec.  600.006(b) 
must be representative of the vehicle configuration for which the fuel 
economy and CO2 emission data were submitted.
    (6) Any vehicle tested for fuel economy or CO2 emissions 
must be representative of a vehicle which the manufacturer intends to 
produce under the provisions of a certificate of conformity.
* * * * *
    (c) If, based on review of the information submitted under Sec.  
600.006(b), the Administrator determines that a fuel economy data 
vehicle meets the requirements of this section, the fuel economy data 
vehicle will be judged to be acceptable and fuel economy data from that 
fuel economy data vehicle will be reviewed pursuant to Sec.  600.008.
* * * * *
    (f) All vehicles used to generate fuel economy data, and for which 
emission standards apply, must be covered by a certificate of 
conformity under part 86 of this chapter before:
* * * * *

0
52. Amend Sec.  600.008 by revising the section heading and paragraph 
(a)(1)(ii) to read as follows:


Sec.  600.008  Review of fuel economy and CO2 emission data, 
testing by the Administrator.

    (a) * * *
    (1) * * *
    (ii) The evaluations, testing, and test data described in this 
section pertaining to fuel economy shall also be performed for 
CO2 emissions, except that CO2 emissions shall be 
arithmetically averaged instead of harmonically averaged, and in cases 
where the manufacturer selects the lowest of several fuel economy 
results to represent the vehicle, the manufacturer shall select the 
CO2 emission value from the test results associated with the 
lowest selected fuel economy results.
* * * * *

0
53. Amend Sec.  600.010 by revising paragraphs (c)(1)(ii) and (d) to 
read as follows:


Sec.  600.010  Vehicle test requirements and minimum data requirements.

* * * * *
    (c) * * *
    (1) * * *
    (ii)(A) FTP and HFET data from the highest projected model year 
sales subconfiguration within the highest projected model year sales 
vehicle configuration for each base level, and
    (B) If required under Sec.  600.115, for 2011 and later model year 
vehicles, US06, SC03 and cold temperature FTP data from the highest 
projected model year sales subconfiguration within the highest 
projected model year sales vehicle configuration for each base level. 
Manufacturers may optionally generate this data for any 2008 through 
2010 model years and 2011 and later model year vehicles, if not 
otherwise required.
* * * * *
    (d) Minimum data requirements for the manufacturer's average fuel 
economy. For the purpose of calculating the manufacturer's average fuel 
economy under Sec.  600.510, the manufacturer shall submit FTP (city) 
and HFET (highway) test data representing at least 90 percent of the 
manufacturer's actual model year production, by vehicle configuration, 
for each category identified for calculation under Sec.  600.510-
12(a)(1).

Subpart B--Fuel Economy and Exhaust Emission Test Procedures

0
54. Revise the heading of subpart B as set forth above.

0
55. Amend Sec.  600.101 by:
0
a. Revising paragraph (a)(2); and
0
b. Removing and reserving paragraph (b)(2).
    The revision reads as follows:


Sec.  600.101  Testing overview.

* * * * *
    (a) * * *
    (2) Calculate fuel economy values for vehicle subconfigurations, 
configurations, base levels, and model types as described in Sec. Sec.  
600.206 and 600.208. Calculate fleet average values for fuel economy as 
described in Sec.  600.510. Note that Sec.  600.510(c) describes how to 
use CREE to determine fuel consumption improvement values for specific 
cases.
* * * * *

0
56. Amend Sec.  600.111-08 by revising paragraph (h) to read as 
follows:


Sec.  600.111-08  Test procedures.

* * * * *
    (h) Special test procedures. We may allow or require you to use 
procedures other than those specified in this section as described in 
40 CFR 1066.10(c). For example, special test procedures may be used for 
advanced technology vehicles, including, but not limited to fuel cell 
vehicles, hybrid electric vehicles using hydraulic energy storage, and 
vehicles equipped with hydrogen internal combustion engines. 
Additionally, we may conduct fuel economy and exhaust emission testing 
using the special test procedures approved for a specific vehicle.

0
57. Amend Sec.  600.113-12 by:
0
a. Revising the section heading, introductory text, and paragraph (g);
0
b. Removing and reserving paragraphs (h)(2), (i)(2), (j)(2), (k)(2), 
(l)(2), (m)(2);
0
c. Revising paragraph (n);
0
d. Removing and reserving paragraph (o)(2); and
0
e. Revising paragraph (p).
    The revisions read as follows:


Sec.  600.113-12  Fuel economy and CO2 emission calculations for FTP, 
HFET, US06, SC03 and cold temperature FTP tests.

    The Administrator will use the calculation procedure set forth in 
this section for all official EPA testing of vehicles fueled with 
gasoline, diesel, alcohol-based or natural gas fuel. The calculations 
of the weighted fuel economy values require input of the weighted 
grams/mile values for total hydrocarbons (HC), carbon monoxide (CO), 
and carbon dioxide (CO2); and, additionally for methanol-
fueled automobiles, methanol (CH3OH) and formaldehyde 
(HCHO); and, additionally for ethanol-fueled automobiles, methanol 
(CH3OH), ethanol (C2H5OH), 
acetaldehyde (C2H4O), and formaldehyde (HCHO); 
and additionally for natural gas-fueled vehicles, non-methane 
hydrocarbons (NMHC) and methane (CH4). Emissions shall be 
determined for the FTP, HFET, US06, SC03, and cold temperature FTP 
tests. Additionally, the specific gravity, carbon weight fraction and 
net heating value of the test fuel must be determined. The FTP, HFET, 
US06, SC03, and cold temperature FTP fuel economy values shall be 
calculated as specified in this section. An example fuel economy 
calculation appears in appendix II to this part.
* * * * *
    (g) Calculate separate FTP, highway, US06, SC03 and Cold 
temperature FTP fuel economy values from the grams/mile values for 
total HC, CO, CO2 and, where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O, and CH4, and the test fuel's specific 
gravity, carbon weight fraction, net heating

[[Page 7770]]

value, and additionally for natural gas, the test fuel's composition.
    (1) Emission values for fuel economy calculations. The emission 
values (obtained per paragraph (a) through (e) of this section, as 
applicable) used in the calculations of fuel economy in this section 
shall be rounded in accordance with Sec.  86.1837 of this chapter. The 
CO2 values (obtained per this section, as applicable) used 
in each calculation of fuel economy in this section shall be rounded to 
the nearest gram/mile.
    (2) [Reserved]
    (3) The specific gravity and the carbon mass fraction (obtained per 
paragraph (f) of this section) shall be recorded using three places to 
the right of the decimal point. Net heat of combustion shall be 
recorded using three places to the right of the decimal point if 
expressed in MJ/kg, or the nearest whole number if expressed in Btu/lb.
* * * * *
    (n) Manufacturers may use a value of 0 grams CO2 per 
mile to represent the emissions of electric vehicles and the electric 
operation of plug-in hybrid electric vehicles derived from electricity 
generated from sources that are not onboard the vehicle.
* * * * *
    (p) Equations for fuels other than those specified in this section 
may be used with advance EPA approval. Alternate calculation methods 
for fuel economy may be used in lieu of the methods described in this 
section if shown to yield equivalent or superior results and if 
approved in advance by the Administrator.

0
58. Amend Sec.  600.114-12 by revising the section heading and 
introductory text to read as follows:


Sec.  600.114-12  Vehicle-specific 5-cycle fuel economy CO2 emission 
calculations.

    Paragraphs (a) through (f) of this section apply to data used for 
fuel economy labeling under subpart D of this part. Paragraphs (d) 
through (f) of this section are used to calculate 5-cycle carbon-
related exhaust emission values for the purpose of determining optional 
credits for CO2-reducing technologies under Sec.  86.1869-12 
of this chapter and to calculate 5-cycle CO2 values for the 
purpose of fuel economy labeling under subpart D of this part.
* * * * *

0
59. Amend Sec.  600.116-12 by revising paragraphs (a)(11)(iii)(E), (c) 
introductory text, (c)(1), (c)(2), (c)(5), and (c)(6)(iii) to read as 
follows:


Sec.  600.116-12  Special procedures related to electric vehicles and 
hybrid electric vehicles.

    (a) * * *
    (11) * * *
    (iii) * * *
    (E) A description of each test group and vehicle configuration that 
will use the 5-cycle adjustment factor, including the battery capacity 
of the vehicle used to generate the 5-cycle adjustment factor and the 
battery capacity of all the vehicle configurations to which it will be 
applied.
* * * * *
    (c) Determine performance values for hybrid electric vehicles that 
have plug-in capability as specified in Sec. Sec.  600.210 and 600.311 
using the procedures of SAE J1711 (incorporated by reference, see Sec.  
600.011), with the following clarifications and modifications:
    (1) Calculate fuel economy values representing combined operation 
during charge-depleting and charge-sustaining operation using the 
following utility factors, except as otherwise specified in this 
paragraph (c):

  Table 1 to Paragraph (c)(1)--Fleet Utility Factors for Urban ``City''
                                 Driving
------------------------------------------------------------------------
 Schedule range for UDDS phases,
              miles                  Cumulative UF       Sequential UF
------------------------------------------------------------------------
3.59............................               0.125               0.125
7.45............................               0.243               0.117
11.04...........................               0.338               0.095
14.90...........................               0.426               0.088
18.49...........................               0.497               0.071
22.35...........................               0.563               0.066
25.94...........................               0.616               0.053
29.80...........................               0.666               0.049
33.39...........................               0.705               0.040
37.25...........................               0.742               0.037
40.84...........................               0.772               0.030
44.70...........................               0.800               0.028
48.29...........................               0.822               0.022
52.15...........................               0.843               0.021
55.74...........................               0.859               0.017
59.60...........................               0.875               0.016
63.19...........................               0.888               0.013
67.05...........................               0.900               0.012
70.64...........................               0.909               0.010
------------------------------------------------------------------------


 Table 2 to Paragraph (c)(1)--Fleet Utility Factors for Highway Driving
------------------------------------------------------------------------
 Schedule range for HFET, miles      Cumulative UF       Sequential UF
------------------------------------------------------------------------
10.3............................               0.123               0.123
20.6............................               0.240               0.117
30.9............................               0.345               0.105
41.2............................               0.437               0.092
51.5............................               0.516               0.079
61.8............................               0.583               0.067
72.1............................               0.639               0.056
------------------------------------------------------------------------


[[Page 7771]]

    (2) Determine fuel economy values to demonstrate compliance with 
CAFE standards as follows:
    (i) For vehicles that are not dual fueled automobiles, determine 
fuel economy using the utility factors specified in paragraph (c)(1) of 
this section. Do not use the petroleum-equivalence factors described in 
10 CFR 474.3.
    (ii) Except as described in paragraph (c)(2)(iii) of this section, 
determine fuel economy for dual fueled automobiles from the following 
equation, separately for city and highway driving:
Equation 2 to Paragraph (c)(2)(ii)
[GRAPHIC] [TIFF OMITTED] TR18FE26.022

Where:

MPGgas = The miles per gallon measured while operating on 
gasoline during charge-sustaining operation as determined using the 
procedures of SAE J1711.
MPGeelec = The miles per gallon equivalent measured while 
operating on electricity. Calculate this value by dividing the 
equivalent all-electric range determined from the equation in Sec.  
86.1866-12(b)(2)(ii) by the corresponding measured Watt-hours of 
energy consumed; apply the appropriate petroleum-equivalence factor 
from 10 CFR 474.3 to convert Watt-hours to gallons equivalent. Note 
that if vehicles use no gasoline during charge-depleting operation, 
MPGeelec is the same as the charge-depleting fuel economy 
specified in SAE J1711.

    (iii) For 2016 and later model year dual fueled automobiles, you 
may determine fuel economy based on the following equation, separately 
for city and highway driving:
Equation 3 to Paragraph (c)(2)(iii)
[GRAPHIC] [TIFF OMITTED] TR18FE26.023

Where:

UF = The appropriate utility factor for city or highway driving 
specified in paragraph (c)(1) of this section.
* * * * *
    (5) Instead of the utility factors specified in paragraphs (c)(1) 
through (3) of this section, calculate utility factors using the 
following equation for vehicles whose maximum speed is less than the 
maximum speed specified in the driving schedule, where the vehicle's 
maximum speed is determined, to the nearest 0.1 mph, from observing the 
highest speed over the first duty cycle (FTP, HFET, etc.):
Equation 4 to Paragraph (c)(5)
[GRAPHIC] [TIFF OMITTED] TR18FE26.024

Where:

UFi = the utility factor for phase i. Let UF0 
= 0.
j = a counter to identify the appropriate term in the summation 
(with terms numbered consecutively).
k = the number of terms in the equation (see Table 5 of this 
section).
di = the distance driven in phase i.
ND = the normalized distance. Use ND = 399 for all types of driving, 
and for both CAFE fleet values and multi-day individual values for 
labeling.
Cj = the coefficient for term j from the following table:

                 Table 5 to Paragraph (c)(5)--City/Highway Specific Utility Factor Coefficients
----------------------------------------------------------------------------------------------------------------
                                                              Fleet values for CAFE        Multi-day individual
                                                        --------------------------------   values for labeling
                           j                                                            ------------------------
                                                              City           Highway         City or highway
----------------------------------------------------------------------------------------------------------------
1......................................................           14.86             4.8                     13.1
2......................................................           2.965              13                    -18.7
3......................................................          -84.05             -65                     5.22
4......................................................           153.7             120                     8.15
5......................................................          -43.59         -100.00                     3.53
6......................................................          -96.94           31.00                    -1.34
7......................................................           14.47  ..............                    -4.01
8......................................................           91.70  ..............                    -3.90
9......................................................          -46.36  ..............                    -1.15
10.....................................................  ..............  ..............                     3.88
----------------------------------------------------------------------------------------------------------------

n = the number of test phases (or bag measurements) before the 
vehicle reaches the end-of-test criterion.

    (6) * * *
    (iii) For charge-sustaining tests, we may approve alternate Net 
Energy Change/Fuel Ratio tolerances as specified in Appendix C of SAE 
J1711 to correct final fuel economy values and CO2 
emissions. For charge-sustaining tests, do not use alternate Net Energy 
Change/Fuel Ratio tolerances to correct emissions of criteria 
pollutants. Additionally, if we approve an alternate

[[Page 7772]]

End-of-Test criterion or Net Energy Change/Fuel Ratio tolerances for a 
specific vehicle, we may use the alternate criterion or tolerances for 
any testing we conduct on that vehicle.
* * * * *

0
60. Amend Sec.  600.117 by:
0
a. Revising paragraph (a)(1);
0
b. Removing and reserving paragraph (a)(5); and
0
c. Revising paragraphs (a)(6) and (b) to read as follows:
    The revisions read as follows:


Sec.  600.117  Interim provisions.

    (a) * * *
    (1) Except as specified in paragraphs (a)(5) and (6) of this 
section, manufacturers must determine fuel economy values using E0 
gasoline test fuel as specified in 40 CFR 86.113-04(a)(1), regardless 
of any testing with E10 test fuel specified in 40 CFR 1065.710(b) under 
paragraph (a)(2) of this section.
* * * * *
    (6) Manufacturers may alternatively determine fuel economy values 
using E10 gasoline test fuel as specified in 40 CFR 1065.710(b). 
Calculate fuel economy using the equation specified in Sec.  600.113-
12(o)(1) based on measured CO2 results without adjusting to 
account for fuel effects.
* * * * *
    (b) For model years 2027 through 2029, manufacturers may determine 
fuel economy values using data with E0 test fuel from testing for 
earlier model years, subject to the carryover provisions of 40 CFR 
86.1839 and Sec.  600.006. Calculate fuel economy using the equation 
specified in Sec.  600.113-12(h)(1) based on measured CO2 
results without adjusting to account for fuel effects.
* * * * *

0
61. Amend Sec.  600.206-12 by revising paragraphs (a) introductory 
text, (a)(4) introductory text, (b), and (c) to read as follows:


Sec.  600.206-12  Calculation and use of FTP-based and HFET-based fuel 
economy, CO2 emissions, and carbon-related exhaust emission values for 
vehicle configurations.

    (a) Fuel economy, CO2 emissions, and carbon-related 
exhaust emissions values determined for each vehicle under Sec.  
600.113-12(a) and (b) and as approved in Sec.  600.008(c), are used to 
determine FTP-based city, HFET-based highway, and combined FTP/Highway-
based fuel economy, CO2 emissions, and carbon-related 
exhaust emission values for each vehicle configuration for which data 
are available. Note that fuel economy for some alternative fuel 
vehicles may mean miles per gasoline gallon equivalent and/or miles per 
unit of fuel consumed. For example, electric vehicles will determine 
miles per kilowatt-hour in addition to miles per gasoline gallon 
equivalent, and fuel cell vehicles will determine miles per kilogram of 
hydrogen.
* * * * *
    (4) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (a)(1) or (2) of this section, 
as applicable, shall be used to calculate two separate sets of FTP-
based city, HFET-based highway, and combined values for fuel economy, 
CO2 emissions, and carbon-related exhaust emissions for each 
vehicle configuration.
* * * * *
    (b) If only one equivalent petroleum-based fuel economy value 
exists for an electric vehicle configuration, that value, rounded to 
the nearest tenth of a mile per gallon, will comprise the petroleum-
based fuel economy for that vehicle configuration.
    (c) If more than one equivalent petroleum-based fuel economy value 
exists for an electric vehicle configuration, all values for that 
vehicle configuration are harmonically averaged and rounded to the 
nearest 0.0001 mile per gallon for that vehicle configuration.

0
62. Amend Sec.  600.207-12 by revising paragraphs (a)(1), (a)(4) 
introductory text, (b), and (c) to read as follows:


Sec.  600.207-12  Calculation and use of vehicle-specific 5-cycle-based 
fuel economy and CO2 emission values for vehicle configurations.

    (a) * * *
    (1) If only one set of 5-cycle city and highway fuel economy and 
CO2 emission values is accepted for a vehicle configuration, 
these values, where fuel economy is rounded to the nearest 0.0001 of a 
mile per gallon and the CO2 emission value in grams per mile 
is rounded to the nearest tenth of a gram per mile, comprise the city 
and highway fuel economy and CO2 emission values for that 
vehicle configuration. Note that the appropriate vehicle-specific 
CO2 values for fuel economy labels based on 5-cycle testing 
with E10 test fuel are adjusted as described in Sec.  600.114-12.
* * * * *
    (4) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the procedures of paragraphs (a)(1) and (2) of this 
section shall be used to calculate two separate sets of 5-cycle city 
and highway fuel economy and CO2 emission values for each 
vehicle configuration.
* * * * *
    (b) If only one equivalent petroleum-based fuel economy value 
exists for an electric vehicle configuration, that value, rounded to 
the nearest tenth of a mile per gallon, will comprise the petroleum-
based 5-cycle fuel economy for that vehicle configuration.
    (c) If more than one equivalent petroleum-based 5-cycle fuel 
economy value exists for an electric vehicle configuration, all values 
for that vehicle configuration are harmonically averaged and rounded to 
the nearest 0.0001 mile per gallon for that vehicle configuration.

0
63. Amend Sec.  600.210-12 by revising paragraph (b) to read as 
follows:


Sec.  600.210-12  Calculation of fuel economy and CO2 emission values 
for labeling.

* * * * *
    (b) Specific labels. Except as specified in paragraphs (d) and (e) 
of this section, fuel economy and CO2 emissions for specific 
labels may be determined by one of two methods. The first is based on 
vehicle-specific vehicle configuration 5-cycle data as determined in 
Sec.  600.207. This method is available for all vehicles and is 
required for vehicles that do not qualify for the second method as 
described in Sec.  600.115 (other than electric vehicles). The second 
method, the derived 5-cycle method, determines fuel economy and 
CO2 emissions values from the FTP and HFET tests using 
equations that are derived from vehicle-specific 5-cycle vehicle 
configuration data, as determined in paragraph (b)(2) of this section. 
Manufacturers may voluntarily lower fuel economy values and raise 
CO2 values if they determine that the label values from 
either method are not representative of the fuel economy or 
CO2 emissions for that model type.
    (1) Vehicle-specific 5-cycle labels. The city and highway vehicle 
configuration fuel economy determined in Sec.  600.207, rounded to the 
nearest mpg, and the city and highway vehicle configuration 
CO2 emissions determined in Sec.  600.207, rounded to the 
nearest gram per mile, comprise the fuel economy and CO2 
emission values for specific fuel economy labels, or, alternatively;
    (2) Derived 5-cycle labels. Specific city and highway label values 
from derived 5-cycle are determined according to the following method:
    (i)(A) Determine the derived five-cycle city fuel economy of the 
vehicle configuration using the equation below and coefficients 
determined by the Administrator:

[[Page 7773]]

[GRAPHIC] [TIFF OMITTED] TR18FE26.025

Where:

City Intercept = Intercept determined by the Administrator based on 
historic vehicle-specific 5-cycle city fuel economy data.
City Slope = Slope determined by the Administrator based on historic 
vehicle-specific 5-cycle city fuel economy data.
Config FTP FE = the vehicle configuration FTP-based city fuel 
economy determined under Sec.  600.206, rounded to the nearest 
0.0001 mpg.

    (B) Determine the derived five-cycle city CO2 emissions 
of the vehicle configuration using the equation below and coefficients 
determined by the Administrator:

Derived 5-cycle City CO2 = City Intercept + City Slope 
[middot] Config FTP CO2

Where:

City Intercept = Intercept determined by the Administrator based on 
historic vehicle-specific 5-cycle city fuel economy data.
City Slope = Slope determined by the Administrator based on historic 
vehicle-specific 5-cycle city fuel economy data.
Config FTP CO2 = the vehicle configuration FTP-based city 
CO2 emissions determined under Sec.  600.206, rounded to 
the nearest 0.1 grams per mile. Note that the appropriate Config FTP 
CO2 input values for fuel economy labels based on testing 
with E10 test fuel are adjusted as referenced in Sec.  600.206-
12(a)(2)(iii).

    (ii)(A) Determine the derived five-cycle highway fuel economy of 
the vehicle configuration using the equation below and coefficients 
determined by the Administrator:
[GRAPHIC] [TIFF OMITTED] TR18FE26.026

Where:

Highway Intercept = Intercept determined by the Administrator based 
on historic vehicle-specific 5-cycle highway fuel economy data.
Highway Slope = Slope determined by the Administrator based on 
historic vehicle-specific 5-cycle highway fuel economy data.
Config HFET FE = the vehicle configuration highway fuel economy 
determined under Sec.  600.206, rounded to the nearest tenth.

    (B) Determine the derived five-cycle highway CO2 
emissions of the vehicle configuration using the equation below and 
coefficients determined by the Administrator:

Derived 5-cycle city Highway CO2 = Highway Intercept + Highway Slope 
[middot] Config HFET CO2


Where:

Highway Intercept = Intercept determined by the Administrator based 
on historic vehicle-specific 5-cycle highway fuel economy data.
Highway Slope = Slope determined by the Administrator based on 
historic vehicle-specific 5-cycle highway fuel economy data.
Config HFET CO2 = the vehicle configuration highway fuel 
economy determined under Sec.  600.206, rounded to the nearest 
tenth. Note that the appropriate Config HFET CO2 input 
values for fuel economy labels based on testing with E10 test fuel 
are adjusted as referenced in Sec.  600.206-12(a)(2)(iii).

    (iii) The slopes and intercepts of paragraph (a)(2)(iii) of this 
section apply.
    (3) Specific alternative fuel economy and CO2emissions 
label values for dual fuel vehicles. (i) Determine an alternative fuel 
label value for dual fuel vehicles, rounded to the nearest whole 
number, as follows:
    (A) Specific city and highway fuel economy label values for dual 
fuel alcohol-based and natural gas vehicles when using the alternative 
fuel are separately determined by the following calculation:
[GRAPHIC] [TIFF OMITTED] TR18FE26.027

Where:

FEalt = The unrounded FTP-based vehicle configuration 
city or HFET-based vehicle configuration highway fuel economy from 
the alternative fuel, as determined in Sec.  600.206.
5cycle FEgas = The unrounded vehicle-specific or derived 
5-cycle vehicle configuration city or highway fuel economy as 
determined in paragraph (b)(1) or (2) of this section.
FEgas = The unrounded FTP-based city or HFET-based 
vehicle configuration highway fuel economy from gasoline, as 
determined in Sec.  600.206.

    (B) Specific city and highway CO2 emission label values 
for dual fuel alcohol-based and natural gas vehicles when using the 
alternative fuel are separately determined by the following 
calculation:
[GRAPHIC] [TIFF OMITTED] TR18FE26.028


[[Page 7774]]


Where:

CO2alt = The unrounded FTP-based vehicle configuration 
city or HFET-based vehicle configuration highway CO2 
emissions value from the alternative fuel, as determined in Sec.  
600.206.
5cycle CO2gas = The unrounded vehicle-specific or derived 
5-cycle vehicle configuration city or highway CO2 
emissions value as determined in paragraph (b)(1) or (b)(2) of this 
section.
CO2gas = The unrounded FTP-based city or HFET-based 
vehicle configuration highway CO2 emissions value from 
gasoline, as determined in Sec.  600.206.

    (ii) Optionally, if complete 5-cycle testing has been performed 
using the alternative fuel, the manufacturer may choose to use the 
alternative fuel label city or highway fuel economy and CO2 
emission values determined in Sec.  600.207-12(a)(4)(ii), rounded to 
the nearest whole number.
    (4) Specific alternative fuel economy and CO2 emissions 
label values for electric vehicles. Determine FTP-based city and HFET-
based highway fuel economy label values for electric vehicles as 
described in Sec.  600.116. Determine these values by running the 
appropriate repeat test cycles. Convert W-hour/mile results to miles 
per kW-hr and miles per gasoline gallon equivalent. CO2 
label information is based on tailpipe emissions only, so 
CO2 emissions from electric vehicles are assumed to be zero.
    (5) Specific alternate fuel economy and CO2 emissions 
label values for fuel cell vehicles. Determine FTP-based city and HFET-
based highway fuel economy label values for fuel cell vehicles using 
procedures specified by the Administrator. Convert kilograms of 
hydrogen/mile results to miles per kilogram of hydrogen and miles per 
gasoline gallon equivalent. CO2 label information is based 
on tailpipe emissions only, so CO2 emissions from fuel cell 
vehicles are assumed to be zero.
* * * * *

Subpart F--Procedures for Determining Manufacturer's Average Fuel 
Economy

0
64. Revise the heading of subpart F as set forth above.

0
65. Amend Sec.  600.507-12 by revising paragraphs (a) introductory 
text, (b), and (d) to read as follows:


Sec.  600.507-12  Running change data requirements.

    (a) Except as specified in paragraph (d) of this section, the 
manufacturer shall submit additional running change fuel economy data 
as specified in paragraph (b) of this section for any running change 
approved or implemented under Sec.  86.1842 of this chapter, which:
* * * * *
    (b)(1) The additional running change fuel economy data requirement 
in paragraph (a) of this section will be determined based on the sales 
of the vehicle configurations in the created or affected base level(s) 
as updated at the time of running change approval.
    (2) Within each newly created base level as specified in paragraph 
(a)(1) of this section, the manufacturer shall submit data from the 
highest projected total model year sales subconfiguration within the 
highest projected total model year sales vehicle configuration in the 
base level.
    (3) Within each base level affected by a running change as 
specified in paragraph (a)(2) of this section, fuel economy data shall 
be submitted for the vehicle configuration created or affected by the 
running change which has the highest total model year projected sales. 
The test vehicle shall be of the subconfiguration created by the 
running change which has the highest projected total model year sales 
within the applicable vehicle configuration.
* * * * *
    (d) For those model types created under Sec.  600.208-12(a)(2), the 
manufacturer shall submit fuel economy data for each subconfiguration 
added by a running change.

0
66. Revise Sec.  600.509-12 to read as follows:


Sec.  600.509-12  Voluntary submission of additional data.

    (a) The manufacturer may optionally submit data in addition to the 
data required by the Administrator.
    (b) Additional fuel economy data may be submitted by the 
manufacturer for any vehicle configuration which is to be tested as 
required in Sec.  600.507 or for which fuel economy data were 
previously submitted under paragraph (c) of this section.
    (c) Within a base level, additional fuel economy data may be 
submitted by the manufacturer for any vehicle configuration which is 
not required to be tested by Sec.  600.507.

0
67. Amend Sec.  600.510-12 by:
0
a. Revising the section heading;
0
b. Removing and reserving paragraph (a)(2);
0
c. Revising paragraphs (b) and (g)(1) introductory text; and
0
d. Removing paragraphs (i), (j), and (k).
    The revisions read as follows:


Sec.  600.510-12  Calculation of average fuel economy.

* * * * *
    (b) For the purpose of calculating average fuel economy under 
paragraph (c) of this section:
    (1) All fuel economy data submitted in accordance with Sec.  
600.006(e) or Sec.  600.512(c) shall be used.
    (2) The combined city/highway fuel economy values will be 
calculated for each model type in accordance with Sec.  600.208, with 
the following exceptions:
    (i) Separate fuel economy values will be calculated for model types 
and base levels associated with car lines for each category of 
passenger automobiles and light trucks as determined by the Secretary 
of Transportation pursuant to paragraph (a)(1) of this section.
    (ii) Total model year production data, as required by this subpart, 
will be used instead of sales projections.
    (iii) The fuel economy value will be rounded to the nearest 0.1 
mpg; and
    (iv) At the manufacturer's option, those vehicle configurations 
that are self-compensating to altitude changes may be separated by 
sales into high-altitude sales categories and low-altitude sales 
categories. These separate sales categories may then be treated (only 
for the purpose of this section) as separate vehicle configurations in 
accordance with the procedure of Sec.  600.208-12(a)(4)(ii).
    (3) The fuel economy values for each vehicle configuration are the 
combined fuel economy calculated according to Sec.  600.206-12(a)(3), 
with the following exceptions:
    (i) Separate fuel economy values will be calculated for vehicle 
configurations associated with car lines for each category of passenger 
automobiles and light trucks as determined by the Secretary of 
Transportation pursuant to paragraph (a)(1) of this section; and
    (ii) Total model year production data, as required by this subpart 
will be used instead of sales projections.
* * * * *
    (g)(1) Dual fuel automobiles must provide equal or greater energy 
efficiency while operating on the alternative fuel as while operating 
on gasoline or diesel fuel to obtain the CAFE credit determined in 
paragraphs (c)(2)(iv) and (v) of this section. The following equation 
must hold true:
* * * * *

0
68. Amend Sec.  600.512-12 by:
0
a. Revising paragraph (a) introductory text;
0
b. Removing and reserving paragraphs (a)(2), (c)(1)(ii), and 
(c)(2)(ii);
0
c. Revising paragraph (c)(3);

[[Page 7775]]

0
d. Removing and reserving paragraphs (c)(4)(ii) and (c)(5)(ii); and
0
e. Removing paragraph (c)(11).
    The revisions read as follows:


Sec.  600.512-12  Model year report.

    (a) For each model year, the manufacturer shall submit to the 
Administrator a report, known as the model year report, containing all 
information necessary for the calculation of the manufacturer's average 
fuel economy.
* * * * *
    (c) * * *
    (3)(i) For manufacturers calculating air conditioning efficiency 
credits in support of fuel consumption improvement values under Sec.  
600.510(c), a description of the air conditioning system and the total 
credits earned for each averaging set, model year, and region, as 
applicable.
    (ii) Any additional fuel economy data submitted by the manufacturer 
under Sec.  600.509;
* * * * *


Sec.  600.514-12  [Removed]

0
69. Remove Sec.  600.514-12.

PART 1036--CONTROL OF EMISSIONS FROM NEW AND IN-USE HEAVY-DUTY 
HIGHWAY ENGINES

0
70. The authority citation for part 1036 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.


0
71. Amend Sec.  1036.1 by revising paragraph (a) introductory text and 
adding paragraph (e) to read as follows:


Sec.  1036.1  Applicability.

    (a) Except as specified in Sec.  1036.5, the provisions of this 
part apply for engines that will be installed in heavy-duty vehicles 
(including glider vehicles). Heavy-duty engines produced before 
December 20, 2026 are subject to exhaust emission standards for 
NOX, HC, PM, and CO, and related provisions under 40 CFR 
part 86, subpart A and subpart N, instead of this part, except as 
follows:
* * * * *
    (e) This part establishes criteria pollutant standards as described 
in Sec.  1036.101. This part does not establish standards for 
CO2 or other greenhouse gas emissions, but it includes 
certification and testing provisions related to CO2 
emissions to support the fuel consumption standards for heavy-duty 
engines adopted by the Department of Transportation's National Highway 
Traffic and Safety Administration (NHTSA) under 49 CFR part 535.

0
72. Amend Sec.  1036.5 by:
0
a. Revising paragraph (a); and
0
b. Removing paragraph (e).
    The revision reads as follows:


Sec.  1036.5  Excluded engines.

    (a) The provisions of this part do not apply to engines used in 
medium-duty passenger vehicles or other heavy-duty vehicles that are 
subject to regulation under 40 CFR part 86, subpart S, except as 
specified in 40 CFR part 86, subpart S. For example, this exclusion 
applies for engines used in incomplete vehicles or high-GCWR vehicles 
certified to vehicle-based standards as described in 40 CFR 86.1801-12.
* * * * *

0
73. Amend Sec.  1036.15 by revising paragraph (b) to read as follows:


Sec.  1036.15  Other applicable regulations.

* * * * *
    (b) Part 1037 of this chapter describes emission standards and 
other requirements for heavy-duty vehicles, whether or not they use 
engines certified under this part.
* * * * *

0
74. Amend Sec.  1036.101 by revising paragraph (a) to read as follows:


Sec.  1036.101  Overview of exhaust emission standards.

    (a) You must show that engines meet the criteria pollutant 
standards for NOX, HC, PM, and CO as described in Sec.  
1036.104. These pollutants are sometimes described collectively as 
``criteria pollutants'' because they are either criteria pollutants 
under the Clean Air Act or precursors to the criteria pollutants ozone 
and PM.
* * * * *


Sec.  1036.108  [Removed]

0
75. Remove Sec.  1036.108.

0
76. Amend Sec.  1036.110 by adding paragraphs (b)(14) through (18) to 
read as follows:


Sec.  1036.110  Onboard diagnostics.

* * * * *
    (b) * * *
    (14) The definition of ``Active Technology'' in 13 CCR 1971.1(c) 
does not apply.
    (15) The standardization requirements in 13 CCR 1971.1(h)(5.4) do 
not apply.
    (16) The data storage requirements in 13 CCR 1971.1(h)(6.1) related 
to the standardization requirements in 13 CCR 1971.1(h)(5.4) do not 
apply.
    (17) The certification documentation requirement related to 
``Active Technology'' in 13 CCR 1971.1(j)(2.32) does not apply.
    (18) The monitoring system demonstration requirements in 13 CCR 
1971.1(i)(4.3.2)(C) related to CO2 emission data does not 
apply.
* * * * *

0
77. Amend Sec.  1036.115 by revising paragraph (b) to read as follows:


Sec.  1036.115  Other requirements.

* * * * *
    (b) Fuel mapping. Fuel mapping for your engine in support of 
NHTSA's fuel consumption standards are described in Sec.  1036.505(b).
* * * * *

0
78. Amend Sec.  1036.130 by revising paragraph (b)(5) to read as 
follows:


Sec.  1036.130  Installation instructions for vehicle manufacturers.

* * * * *
    (b) * * *
    (5) Describe how your certification is limited for any type of 
application. For example, if you certify engines only for use in 
emergency vehicles, you must make clear that the engine may only be 
installed in emergency vehicles.
* * * * *

0
79. Amend Sec.  1036.135 by revising paragraph (c)(9) to read as 
follows:


Sec.  1036.135  Labeling.

* * * * *
    (c) * * *
    (9) Identify any limitations on your certification. For example, if 
you certify engines with one or more approved AECDs for emergency 
vehicle applications under Sec.  1036.115(h)(4), include the statement: 
``THIS ENGINE IS FOR INSTALLATION IN EMERGENCY VEHICLES ONLY''.
* * * * *

0
80. Revise and republish Sec.  1036.150 to read as follows:


Sec.  1036.150  Interim provisions.

    The provisions in this section apply instead of other provisions in 
this part. This section describes when these interim provisions expire, 
if applicable.
    (a) Transitional ABT credits for NOX emissions. You may generate 
NOX credits from model year 2026 and earlier engines and use 
those as transitional credits for model year 2027 and later engines 
using any of the following methods:
    (1) Discounted credits. Generate discounted credits by certifying 
any model year 2022 through 2026 engine family to meet all the 
requirements that apply under 40 CFR part 86, subpart A. Calculate 
discounted credits for certifying engines in model years 2027 through 
2029 as described in Sec.  1036.705 relative to a NOX 
emission standard of 200 mg/hp[middot]hr and multiply the result by 
0.6. You may not use discounted credits

[[Page 7776]]

for certifying model year 2030 and later engines.
    (2) Partial credits. Generate partial credits by certifying any 
model year 2024 through 2026 compression-ignition engine family as 
described in this paragraph (a)(2). You may not use partial credits for 
certifying model year 2033 and later engines. Certify engines for 
partial credits to meet all the requirements that apply under 40 CFR 
part 86, subpart A, with the following adjustments:
    (i) Calculate credits as described in Sec.  1036.705 relative to a 
NOX emission standard of 200 mg/hp[middot]hr using the 
appropriate useful life mileage from 40 CFR 86.004-2. Your declared 
NOX family emission limit applies for the FTP and SET duty 
cycles.
    (ii) Engines must meet a NOX standard when tested over 
the Low Load Cycle as described in Sec.  1036.514. Engines must also 
meet an off-cycle NOX standard as specified in Sec.  
1036.104(a)(3). Calculate the NOX family emission limits for 
the Low Load Cycle and for off-cycle testing as described in Sec.  
1036.104(c)(3) with StdFTPNOx set to 35 mg/hp[middot]hr and 
Std[cycle]NOx set to the values specified in Sec.  
1036.104(a)(1) or (3), respectively. No standard applies for HC, PM, 
and CO emissions for the Low Load Cycle or for off-cycle testing, but 
you must record measured values for those pollutants and include those 
measured values where you report NOX emission results.
    (iii) For engines selected for in-use testing, we may specify that 
you perform testing as described in 40 CFR part 86, subpart T, or as 
described in subpart E of this part.
    (iv) Add the statement ``Partial credit'' to the emission control 
information label.
    (3) Full credits. Generate full credits by certifying any model 
year 2024 through 2026 engine family to meet all the requirements that 
apply under this part. Calculate credits as described in Sec.  1036.705 
relative to a NOX emission standard of 200 mg/hp[middot]hr. 
You may not use full credits for certifying model year 2033 and later 
engines.
    (4) 2026 service class pull-ahead credits. Generate credits from 
diesel-fueled engines under this paragraph (a)(4) by certifying all 
your model year 2026 diesel-fueled Heavy HDE to meet all the 
requirements that apply under this part, with a NOX family 
emission limit for FTP testing at or below 50 mg/hp[middot]hr. 
Calculate credits as described in Sec.  1036.705 relative to a 
NOX emission standard of 200 mg/hp[middot]hr. You may use 
credits generated under this paragraph (a)(4) through model year 2034, 
but not for later model years. Credits generated by Heavy HDE may be 
used for certifying Medium HDE after applying a 10 percent discount 
(multiply credits by 0.9). Engine families using credits generated 
under this paragraph (a)(4) are subject to a NOX FEL cap of 
50 mg/hp[middot]hr for FTP testing.
    (b) [Reserved]
    (c) Engine cycle classification. Through model year 2020, engines 
meeting the definition of spark-ignition, but regulated as compression-
ignition engines under Sec.  1036.140, must be certified to the 
requirements applicable to compression-ignition engines under this 
part. Such engines are deemed to be compression-ignition engines for 
purposes of this part. Similarly, through model year 2020, engines 
meeting the definition of compression-ignition, but regulated as Otto-
cycle under 40 CFR part 86 must be certified to the requirements 
applicable to spark-ignition engines under this part. Such engines are 
deemed to be spark-ignition engines for purposes of this part. See 
Sec.  1036.140 for provisions that apply for model year 2021 and later.
    (d) Small manufacturers. The fuel consumption standards under 49 
CFR part 535 apply on a delayed schedule for manufacturers meeting the 
small business criteria specified in 13 CFR 121.201. Apply the small 
business criteria for NAICS code 336310 for engine manufacturers with 
respect to gasoline-fueled engines and 333618 for engine manufacturers 
with respect to other engines; the employee limits apply to the total 
number employees together for affiliated companies. Qualifying small 
manufacturers are not subject to the fuel consumption standards for 
engines with a date of manufacture on or after November 14, 2011, but 
before January 1, 2022. In addition, qualifying small manufacturers 
producing engines that run on any fuel other than gasoline, E85, or 
diesel fuel may delay complying with every later fuel consumption 
standard under 49 CFR part 535 by one model year; however, small 
manufacturers may generate credits only by certifying all their engine 
families within a given averaging set to standards that apply for the 
current model year. Note that engines not yet subject to standards must 
nevertheless supply fuel maps to vehicle manufacturers as described in 
paragraph (n) of this section. Note also that engines produced by small 
manufacturers are subject to criteria pollutant standards.
    (e) [Reserved]
    (f) Testing exemption for hydrogen engines. Tailpipe HC, and CO 
emissions from engines fueled with neat hydrogen are deemed to comply 
with the applicable standard. Testing for HC or CO is optional under 
this part for these engines.
    (g)-(j) [Reserved]
    (k) Limited production volume allowance under ABT. You may produce 
a limited number of Heavy HDE that continue to meet the standards that 
applied under 40 CFR 86.007-11 in model years 2027 through 2029. The 
maximum number of engines you may produce under this limited production 
allowance is 5 percent of the annual average of your actual production 
volume of Heavy HDE in model years 2023-2025 for calculating emission 
credits under Sec.  1036.705. Engine certification under this paragraph 
(k) is subject to the following conditions and requirements:
    (1) Engines must meet all the standards and other requirements that 
apply under 40 CFR part 86 for model year 2026. Engine must be 
certified in separate engine families that qualify for carryover 
certification as described in Sec.  1036.235(d).
    (2) The NOX FEL must be at or below 200 mg/hp[middot]hr. 
Calculate negative credits as described in Sec.  1036.705 by comparing 
the NOX FEL to the FTP emission standard specified in Sec.  
1036.104(a)(1), with a value for useful life of 650,000 miles. Meet the 
credit reporting and recordkeeping requirements in Sec. Sec.  1036.730 
and 1036.735.
    (3) Label the engine as described in 40 CFR 86.095-35, but include 
the following alternate compliance statement: ``THIS ENGINE CONFORMS TO 
U.S. EPA REGULATIONS FOR MODEL YEAR 2026 ENGINES UNDER 40 CFR 
1036.150(k).''
    (l) [Reserved]
    (m) Infrequent regeneration. For model year 2020 and earlier, you 
may invalidate any test interval with respect to CO2 
measurements if an infrequent regeneration event occurs during the test 
interval. Note that Sec.  1036.580 specifies how to apply infrequent 
regeneration adjustment factors for later model years.
    (n) Supplying fuel maps. Engine manufacturers not yet subject to 
fuel consumption standards under 49 CFR part 535 in model year 2021 
must supply vehicle manufacturers with fuel maps (or powertrain test 
results) as described in Sec.  1036.130 for those engines.
    (o) Engines used in glider vehicles. For purposes of recertifying a 
used engine for installation in a glider vehicle, we may allow you to 
include in an existing certified engine family those engines you modify 
(or otherwise demonstrate) to be identical to engines already covered 
by the certificate. We

[[Page 7777]]

would base such an approval on our review of any appropriate 
documentation. These engines must have emission control information 
labels that accurately describe their status.
    (p) [Reserved]
    (q) Confirmatory and in-use testing of fuel maps defined in Sec.  
1036.505(b). For model years 2021 and later, where the results from Eq. 
1036.235-1 for a confirmatory or in-use test are at or below 2.0%, we 
will not replace the manufacturer's fuel maps.
    (r) Fuel maps for the transition to updated GEM. (1) You may use 
fuel maps from model year 2023 and earlier engines for certifying model 
year 2024 and later engines using carryover provisions in Sec.  
1036.235(d).
    (2) Compliance testing will be based on the GEM version you used to 
generate fuel maps for certification. For example, if you perform a 
selective enforcement audit with respect to fuel maps, use the same GEM 
version that you used to generate fuel maps for certification. 
Similarly, we will use the same GEM version that you used to generate 
fuel maps for certification if we perform confirmatory testing with one 
of your engine families.
    (s) Fuel consumption compliance testing. Select duty cycles and 
measure emissions to demonstrate compliance with the fuel consumption 
standards under 49 CFR part 535 before model year 2027 as follows:
    (1) For model years 2016 through 2020, measure emissions using the 
FTP duty cycle specified in Sec.  1036.512 and the SET duty cycle 
specified in 40 CFR 86.1362, as applicable.
    (2) The following provisions apply for model years 2021 through 
2026:
    (i) [Reserved]
    (ii) You may demonstrate compliance with SET-based fuel consumption 
standards using the SET duty cycle specified in 40 CFR 86.1362 if you 
collect emissions with continuous sampling. Integrate the test results 
by mode to establish separate emission rates for each mode (including 
the transition following each mode, as applicable). Apply the 
CO2 weighting factors specified in 40 CFR 86.1362 to 
calculate a composite emission result.
    (t) Model year 2027 compliance date. The following provisions 
describe when this part 1036 starts to apply for model year 2027 
engines:
    (1) Split model year. Model year 2027 engines you produce before 
December 20, 2026 are subject to the criteria standards and related 
provisions in 40 CFR part 86, subpart A, as described in Sec.  
1036.1(a). Model year 2027 engines you produce on or after December 20, 
2026 are subject to all the provisions of this part.
    (2) Optional early compliance. You may optionally certify model 
year 2027 engines you produce before December 20, 2026 to all the 
provisions of this part.
    (3) Certification. If you certify any model year 2027 engines to 40 
CFR part 86, subpart A, under paragraph (t)(1) of this section, certify 
the engine family by dividing the model year into two partial model 
years. The first portion of the model year starts when it would 
normally start and ends when you no longer produce engines meeting 
standards under 40 CFR part 86, subpart A, on or before December 20, 
2026. The second portion of the model year starts when you begin 
producing engines meeting standards under this part 1036, and ends on 
the day your model year would normally end. The following additional 
provisions apply for model year 2027 if you split the model year as 
described in this paragraph (t):
    (i) You may generate emission credits only with engines that are 
certified under this part 1036.
    (ii) In your production report under Sec.  1036.250(a), identify 
production volumes separately for the two parts of the model year.
    (iii) OBD testing demonstrations apply singularly for the full 
model year.
    (u) Crankcase emissions. The provisions of 40 CFR 86.007-11(c) for 
crankcase emissions continue to apply through model year 2026.
    (v) OBD communication protocol. We may approve the alternative 
communication protocol specified in SAE J1979-2 (incorporated by 
reference, see Sec.  1036.810) if the protocol is approved by the 
California Air Resources Board. The alternative protocol would apply 
instead of SAE J1939 and SAE J1979 as specified in 40 CFR 86.010-
18(k)(1). Engines designed to comply with SAE J1979-2 must meet the 
freeze-frame requirements in Sec.  1036.110(b)(8) and in 13 CCR 
1971.1(h)(4.3.2) (incorporated by reference, see Sec.  1036.810). This 
paragraph (v) also applies for model year 2026 and earlier engines.
    (w) [Reserved]
    (x) Powertrain testing for criteria pollutants. You may apply the 
powertrain testing provisions of Sec.  1036.101(b) for demonstrating 
compliance with criteria pollutant emission standards in 40 CFR part 86 
before model year 2027.
    (y) NOX compliance allowance for in-use testing. A NOX 
compliance allowance of 15 mg/hp[middot]hr applies for any in-use 
testing of Medium HDE and Heavy HDE as described in subpart E of this 
part. Add the compliance allowance to the NOX standard that 
applies for each duty cycle and for off-cycle testing, with both field 
testing and laboratory testing. The NOX compliance allowance 
does not apply for the bin 1 off-cycle standard. As an example, for 
manufacturer-run field-testing of a Heavy HDE, add the 15 mg/
hp[middot]hr compliance allowance and the 5 mg/hp[middot]hr accuracy 
margin from Sec.  1036.420 to the 58 mg/hp[middot]hr bin 2 off-cycle 
standard to calculate a 78 mg/hp[middot]hr NOX standard.
    (z) Alternate family pass criteria for in-use testing. The 
following family pass criteria apply for manufacturer-run in-use 
testing instead of the pass criteria described in Sec.  1036.425 for 
model years 2027 and 2028:
    (1) Start by measuring emissions from five engines using the 
procedures described in subpart E of this part and Sec.  1036.530. If 
four or five engines comply fully with the off-cycle bin standards, the 
engine family passes and you may stop testing.
    (2) If exactly two of the engines tested under paragraph (z)(1) of 
this section do not comply fully with the off-cycle bin standards, test 
five more engines. If these additional engines all comply fully with 
the off-cycle bin standards, the engine family passes and you may stop 
testing.
    (3) If three or more engines tested under paragraphs (z)(1) and (2) 
of this section do not comply fully with the off-cycle bin standards, 
test a total of at least 10 but not more than 15 engines. Calculate the 
arithmetic mean of the bin emissions from all the engine tests as 
specified in Sec.  1036.530(g) for each pollutant. If the mean values 
are at or below the off-cycle bin standards, the engine family passes. 
If the mean value for any pollutant is above an off-cycle bin standard, 
the engine family fails.

0
81. Amend Sec.  1036.205 by:
0
a. Revising paragraphs (b) introductory text, (l), (m), (o)(2), and 
(t); and
0
b. Removing paragraph (aa).
    The revisions read as follows:


Sec.  1036.205  Requirements for an application for certification.

* * * * *
    (b) Explain how the emission control system operates. Describe in 
detail all system components for controlling greenhouse gas and 
criteria pollutant emissions, including all auxiliary emission control 
devices (AECDs) and all fuel-system components you will install on any 
production or test engine. Identify the part number of each component 
you describe. For this paragraph (b), treat as separate AECDs

[[Page 7778]]

any devices that modulate or activate differently from each other. 
Include all the following:
* * * * *
    (l) Identify the duty-cycle emission standards from Sec.  
1036.104(a) and (b) that apply for the engine family. Also identify 
FELs and FCLs as follows:
    (1) Identify the NOX FEL over the FTP for the engine 
family.
    (2) Identify the CO2 FCLs for the engine family. The 
actual U.S.-directed production volume of configurations that are at or 
below the FCL must be at least one percent of your actual (not 
projected) U.S.-directed production volume for the engine family. 
Identify configurations within the family that have emission rates at 
or below the FCL and meet the one percent requirement. For example, if 
your U.S.-directed production volume for the engine family is 10,583 
and the U.S.-directed production volume for the tested rating is 75 
engines, then you can comply with this provision by setting your FCL so 
that one more rating with a U.S.-directed production volume of at least 
31 engines meets the FCL. Where applicable, also identify other 
testable configurations required under Sec.  1036.230(f)(2)(ii).
    (m) Identify the engine family's deterioration factors and describe 
how you developed them (see Sec.  1036.240). Present any test data you 
used for this. For engines designed to discharge crankcase emissions to 
the ambient atmosphere, use the deterioration factors for crankcase 
emission to determine deteriorated crankcase emission levels of 
NOX, HC, PM, and CO as specified in Sec.  1036.240(e).
* * * * *
    (o) * * *
    (2) Identify the value of eCO2FTPFCL from Sec.  
1036.235(b). Show emission figures before and after applying 
deterioration factors for each engine. In addition to the composite 
results, show individual measurements for cold-start testing and hot-
start testing over the transient test cycle.
* * * * *
    (t) State whether your certification is limited for certain 
engines. For example, you might certify engines only for use in 
emergency vehicles or in vehicles with hybrid powertrains. If this is 
the case, describe how you will prevent use of these engines in 
vehicles for which they are not certified.
* * * * *

0
82. Amend Sec.  1036.230 by revising paragraphs (f) introductory text, 
and (f)(1) and (5) to read as follows:


Sec.  1036.230  Selecting engine families.

* * * * *
    (f) The following additional provisions apply with respect to 
demonstrating compliance with the fuel consumption standards of 49 CFR 
535.5:
    (1) Use the same engine families you use for criteria pollutants. 
You may subdivide an engine family into subfamilies that have a 
different FCL for CO2 emissions. These subfamilies do not 
apply for demonstrating compliance with criteria standards in Sec.  
1036.104.
* * * * *
    (5) Except as described in this paragraph (f), engine 
configurations within an engine family must use equivalent controls. 
Unless we approve it, you may not produce nontested configurations 
without the same control hardware included on the tested configuration.
* * * * *

0
83. Add Sec.  1036.231 to subpart C to read as follows:


Sec.  1036.231  Powertrain families.

    (a) If you choose to perform powertrain testing as specified in 
Sec.  1036.545, use good engineering judgment to divide your product 
line into powertrain families that are expected to have similar 
criteria emissions throughout the useful life as described in this 
section. Your powertrain family is limited to a single model year.
    (b) Except as specified in paragraph (c) of this section, group 
powertrains in the same powertrain family if they share all the 
following attributes:
    (1) Have the same engine design aspects as specified in Sec.  
1036.230.
    (2) [Reserved]
    (3) Number of clutches.
    (4) Type of clutch (e.g., wet or dry).
    (5) Presence and location of a fluid coupling such as a torque 
converter.
    (6) Gear configuration, as follows:
    (i) Planetary (e.g., simple, compound, meshed-planet, stepped-
planet, multi-stage).
    (ii) Countershaft (e.g., single, double, triple).
    (iii) Continuously variable (e.g., pulley, magnetic, toroidal).
    (7) Number of available forward gears, and transmission gear ratio 
for each available forward gear, if applicable. Count forward gears as 
being available only if the vehicle has the hardware and software to 
allow operation in those gears.
    (8) Transmission oil sump configuration (e.g., conventional or 
dry).
    (9) The power transfer configuration of any hybrid technology 
(e.g., series or parallel).
    (10) The type of any RESS (e.g., hydraulic accumulator, Lithium-ion 
battery pack, ultracapacitor bank).
    (c) For powertrains that share all the attributes described in 
paragraph (b) of this section, divide them further into separate 
powertrain families based on common calibration attributes. Group 
powertrains in the same powertrain family to the extent that powertrain 
test results and corresponding emission levels are expected to be 
similar throughout the useful life.
    (d) You may subdivide a group of powertrains with shared attributes 
under paragraph (b) of this section into different powertrain families.
    (e) In unusual circumstances, you may group powertrains into the 
same powertrain family even if they do not have shared attributes under 
in paragraph (b) of this section if you show that their emission 
characteristics throughout the useful life will be similar.
    (f) If you include the axle when performing powertrain testing for 
the family, you must limit the family to include only those axles 
represented by the test results. You may include multiple axle ratios 
in the family if you test with the axle expected to produce the highest 
emission results.

0
84. Amend Sec.  1036.235 by revising the introductory text and 
paragraphs (a), (b), and (c)(5) introductory text to read as follows:


Sec.  1036.235  Testing requirements for certification.

    This section describes the emission testing you must perform to 
show compliance with the emission standards in Sec.  1036.104 or fuel 
consumption standards under 49 CFR part 535.
    (a) Select and configure one or two emission-data engines from each 
engine family as follows:
    (1) You may use one engine for criteria pollutant testing and a 
different engine for fuel consumption testing, or you may use the same 
engine for all testing.
    (2) For criteria pollutant emission testing, select the engine 
configuration with the highest volume of fuel injected per cylinder per 
combustion cycle at the point of maximum torque--unless good 
engineering judgment indicates that a different engine configuration is 
more likely to exceed (or have emissions nearer to) an applicable 
emission standard or FEL. If two or more engines have the same fueling 
rate at maximum torque, select the one with the highest fueling rate at 
rated speed. In making this selection, consider all factors expected to 
affect emission-control performance and compliance with the

[[Page 7779]]

standards, including emission levels of all exhaust constituents, 
especially NOX and PM. To the extent we allow it for 
establishing deterioration factors, select for testing those engine 
components or subsystems whose deterioration best represents the 
deterioration of in-use engines.
    (3) For fuel consumption testing, the standards of this part apply 
only with respect to emissions measured from the tested configuration 
and other configurations identified in Sec.  1036.205(l)(2). Note that 
configurations identified in Sec.  1036.205(l)(2) are considered to be 
``tested configurations'' whether or not you test them for 
certification. However, you must apply the same (or equivalent) 
emission controls to all other engine configurations in the engine 
family. In other contexts, the tested configuration is sometimes 
referred to as the ``parent configuration'', although the terms are not 
synonymous.
    (4) In the case of powertrain testing under Sec.  1036.545, select 
a test engine, test hybrid components, test axle and test transmission 
as applicable, by considering the whole range of vehicle models covered 
by the powertrain family. If the powertrain has more than one 
transmission calibration, for example economy vs. performance, you may 
weight the results from the powertrain testing in Sec.  1036.545 by the 
percentage of vehicles in the family by prior model year for each 
configuration. This can be done, for example, through the use of survey 
data or based on the previous model year's sales volume. Weight the 
results of Mfuel[cycle], fnpowertrain/
vpowertrain, and W[cycle] from table 5 to 
paragraph (o)(8)(i) of Sec.  1036.545 according to the percentage of 
vehicles in the family that use each transmission calibration.
    (b) Test your emission-data engines using the procedures and 
equipment specified in subpart F of this part. In the case of dual-fuel 
and flexible-fuel engines, measure emissions when operating with each 
type of fuel for which you intend to certify the engine.
    (1) For criteria pollutant emission testing, measure 
NOX, PM, CO, and NMHC emissions using each duty cycle 
specified in Sec.  1036.104. Note that off-cycle testing depends on 
determining the value of eCO2FTPFCL from Sec.  1036.530.
    (2) For fuel consumption testing, measure CO2 emissions; 
the following provisions apply regarding test cycles for demonstrating 
compliance with tractor and vocational fuel consumption standards:
    (i) For tractors, you must measure CO2 emissions using 
the SET duty cycle specified in Sec.  1036.510, taking into account the 
interim provisions in Sec.  1036.150(s).
    (ii) For vocational applications, you must measure CO2 
emissions using the appropriate FTP transient duty cycle, including 
cold-start and hot-start testing as specified in Sec.  1036.512.
    (iii) For engine families that include both tractor and vocational 
use, you may submit CO2 emission data and specify FCLs for 
both SET and FTP transient duty cycles.
    (iv) Some of your engines tested for use in tractors may also be 
used in vocational vehicles, and some of your engines tested for use in 
vocational may be used in tractors. However, you may not knowingly 
circumvent the intent of this part by testing engines designed for 
tractors or vocational vehicles (and rarely used in the other 
application) to the wrong cycle.
    (c) * * *
    (5) For fuel consumption testing, we may use our emission test 
results for steady-state, idle, cycle-average and powertrain fuel maps 
defined in Sec.  1036.505(b) as the official emission results. We will 
not replace individual points from your fuel map.
* * * * *


Sec.  1036.241  [Removed]

0
85. Remove Sec.  1036.241.

0
86. Amend Sec.  1036.301 by revising the section heading to read as 
follows:


Sec.  1036.301  Selective enforcement audits.

* * * * *

0
87. Amend Sec.  1036.501 by revising paragraph (a) to read as follows:


Sec.  1036.501  General testing provisions.

    (a) Use the equipment and procedures specified in this subpart and 
40 CFR part 1065 to determine whether engines meet the emission 
standards in Sec.  1036.104 or fuel consumption standards under 49 CFR 
part 535.
* * * * *

0
88. Add Sec.  1036.503 to subpart F to read as follows:


Sec.  1036.503  Engine data and information to support vehicle 
certification for NHTSA.

    See Sec.  1036.505 for engine data and information required to 
support vehicle certification.

0
89. Amend Sec.  1036.505 by revising the introductory text and 
paragraph (a) to read as follows:


Sec.  1036.505  Engine data and information to support vehicle 
certification.

    You must give vehicle manufacturers information as follows so they 
can certify their vehicles to fuel consumption standards under 49 CFR 
part 535:
    (a) Identify engine make, model, fuel type, combustion type, engine 
family name, calibration identification, and engine displacement. Also 
identify whether the engines will be used in tractors, vocational 
vehicles, or both. When certifying vehicles with GEM, for any fuel type 
not identified in table 1 to paragraph (b)(4) of Sec.  1036.550, 
identify the fuel type as diesel fuel for engines subject to 
compression-ignition standards, and as gasoline for engines subject to 
spark-ignition standards.
* * * * *

0
90. Amend Sec.  1036.510 by revising paragraphs (b)(2) introductory 
text and (b)(2)(vii) and (viii) to read as follows:


Sec.  1036.510  Supplemental Emission Test.

* * * * *
    (b) * * *
    (2) Test hybrid powertrains as described in Sec.  1036.545, except 
as specified in this paragraph (b)(2). Do not compensate the duty cycle 
for the distance driven as described in Sec.  1036.545(g)(4). For 
hybrid engines, select the transmission model parameters as described 
in Sec.  1036.510(b)(2)(viii), . Disregard duty cycles in Sec.  
1036.545(j). For cycles that begin with idle, leave the transmission in 
neutral or park for the full initial idle segment. Place the 
transmission into drive no earlier than 5 seconds before the first 
nonzero vehicle speed setpoint. For SET testing only, place the 
transmission into park or neutral when the cycle reaches the final idle 
segment. Use the following vehicle parameters instead of those in Sec.  
1036.545 to define the vehicle model in Sec.  1036.545(a)(3):
* * * * *
    (vii) Select a combination of drive axle ratio, ka, and 
a tire radius, r, that represents the worst-case combination of top 
gear ratio, drive axle ratio, and tire size for CO2 
emissions expected for vehicles in which the hybrid engine or hybrid 
powertrain will be installed. This is typically the highest axle ratio 
and smallest tire radius. Disregard configurations or settings 
corresponding to a maximum vehicle speed below 60 mi/hr in selecting a 
drive axle ratio and tire radius, unless you can demonstrate that in-
use vehicles will not exceed that speed. You may request preliminary 
approval for selected drive axle ratio and tire radius consistent with 
the provisions of Sec.  1036.210. If the hybrid engine or hybrid 
powertrain is used exclusively in vehicles not capable of reaching 60 
mi/hr, you may request that we approve an alternate test cycle and 
cycle-validation criteria as described in 40 CFR 1066.425(b)(5). Note 
that hybrid engines rely on a specified transmission

[[Page 7780]]

that is different for each duty cycle; the transmission's top gear 
ratio therefore depends on the duty cycle, which will in turn change 
the selection of the drive axle ratio and tire size. For example, Sec.  
1036.520 prescribes a different top gear ratio than this paragraph 
(b)(2).
    (viii) If you are certifying a hybrid engine, use a default 
transmission efficiency of 0.95 and create the vehicle model along with 
its default transmission shift strategy as described in Sec.  
1036.545(a)(3)(ii). Specify the transmission type as Automatic 
Transmission for all engines and for all duty cycles, except that the 
transmission type is Automated Manual Transmission for Heavy HDE 
operating over the SET duty cycle. For automatic transmissions set 
neutral idle to ``Y'' in the vehicle file. Select gear ratios for each 
gear as shown in the following table:

               Table 1 to Paragraph (b)(2)(viii) of Sec.   1036.510--GEM HIL Input for Gear Ratio
----------------------------------------------------------------------------------------------------------------
                                         Spark-ignition HDE,
               Gear No.                 Light HDE, and Medium    Heavy HDE--LLC and FTP    Heavy HDE-- SET duty
                                         HDE--all duty cycles         duty cycles                 cycle
----------------------------------------------------------------------------------------------------------------
1....................................                     3.10                     3.51                     12.8
2....................................                     1.81                     1.91                     9.25
3....................................                     1.41                     1.43                     6.76
4....................................                     1.00                     1.00                     4.90
5....................................                     0.71                     0.74                     3.58
6....................................                     0.61                     0.64                     2.61
7....................................  .......................  .......................                     1.89
8....................................  .......................  .......................                     1.38
9....................................  .......................  .......................                     1.00
10...................................  .......................  .......................                     0.73
Lockup Gear..........................                        3                        3  .......................
----------------------------------------------------------------------------------------------------------------

* * * * *

0
91. Amend Sec.  1036.512 by revising paragraphs (b)(2)(iv) and (e) to 
read as follows:


Sec.  1036.512  Federal Test Procedure.

* * * * *
    (b) * * *
    (2) * * *
    (iv) For plug-in hybrid powertrains, test over the FTP in both 
charge-sustaining and charge-depleting operation for criteria pollutant 
determination.
* * * * *
    (e) Determine CO2 emissions for plug-in hybrid engines 
and powertrains using the emissions results for all the transient duty 
cycle test intervals described in either paragraph (b) or (c) of 
appendix B to this part for both charge-depleting and charge-sustaining 
operation from paragraph (d)(2) of this section. Calculate the utility 
factor weighted composite mass of emissions from the charge-depleting 
and charge-sustaining test results, eUF[emission]comp, as 
described in Sec.  1036.510(e), replacing occurrences of ``SET'' with 
``transient test interval''. Note this results in composite FTP 
CO2 emission results for plug-in hybrid engines and 
powertrains without the use of the cold-start and hot-start test 
interval weighting factors in Eq. 1036.512-1.
* * * * *

0
92. Amend Sec.  1036.514 by revising paragraph (b)(4) to read as 
follows:


Sec.  1036.514  Low Load Cycle.

* * * * *
    (b) * * *
    (4) Adjust procedures in this section as described in Sec.  
1036.510(d) for plug-in hybrid powertrains, replacing ``SET'' with 
``LLC''. Note that the LLC is therefore the preconditioning duty cycle 
for plug-in hybrid powertrains.
* * * * *

0
93. Amend Sec.  1036.520 by revising paragraph (b)(1) to read as 
follows:


Sec.  1036.520  Determining power and vehicle speed values for 
powertrain testing.

* * * * *
    (b) * * *
    (1) Use vehicle parameters, other than power, as specified in Sec.  
1036.510(b)(2). Use the applicable automatic transmission as specified 
in Sec.  1036.510(b)(2)(viii).
* * * * *

0
94. Amend Sec.  1036.535 by:
0
a. Revising the introductory text; and
0
b. Removing and reserving paragraph (f).
    The revision reads as follows:


Sec.  1036.535  Determining steady-state engine fuel maps and fuel 
consumption at idle.

    The procedures in this section describe how to determine an 
engine's steady-state fuel map and fuel consumption at idle for model 
year 2021 and later vehicles; these procedures apply as described in 
Sec.  1036.505. Vehicle manufacturers may need these values to 
demonstrate compliance with standards under 49 CFR part 535.
* * * * *

0
95. Amend Sec.  1036.540 by:
0
a. Revising paragraph (a) introductory text; and
0
b. Removing and reserving paragraph (b)(1).
    The revision reads as follows:


Sec.  1036.540  Determining cycle-average engine fuel maps.

    (a) Overview. This section describes how to determine an engine's 
cycle-average fuel maps for model year 2021 and later vehicles. Vehicle 
manufacturers may need cycle-average fuel maps for transient duty 
cycles, highway cruise cycles, or both to demonstrate compliance with 
standards under 49 CFR part 535. Generate cycle-average engine fuel 
maps as follows:
* * * * *

0
96. Amend Sec.  1036.545 by:
0
a. Revising the introductory text;
0
b. Removing and reserving paragraph (a)(1);
0
c. Revising paragraph (d); and
0
d. Removing paragraph (p).
    The revisions read as follows:


Sec.  1036.545  Powertrain testing.

    This section describes the procedure to measure fuel consumption 
and create engine fuel maps by testing a powertrain that includes an 
engine coupled with a transmission, drive axle, and hybrid components 
or any assembly with one or more of those hardware elements. Engine 
fuel maps are part of demonstrating compliance with standards under 49 
CFR part 535; the powertrain test procedure in this section is one 
option for generating this fuel-mapping information as described in 
Sec.  1036.505. Additionally, this powertrain test procedure is one 
option

[[Page 7781]]

for certifying hybrid powertrains to the engine standards in Sec.  
1036.104.
* * * * *
    (d) Powertrain break in. Break in the powertrain as a complete 
system using the engine break-in procedure in 40 CFR 1065.405(c), or 
take the following steps to break in the engine, axle assembly, and 
transmission separately, as applicable:
    (1) Break in the engine according to 40 CFR 1065.405(c).
    (2) Break in the axle assembly using good engineering judgment. 
Maintain gear oil temperature at or below 100 [deg]C throughout the 
break-in period.
    (3) Break in the transmission using good engineering judgment. 
Maintain transmission oil temperature at (87 to 93) [deg]C for 
automatic transmissions and transmissions having more than two friction 
clutches, and at (77 to 83) [deg]C for all other transmissions. You may 
ask us to approve a different range of transmission oil temperatures if 
you have data showing that it better represents in-use operation.
* * * * *

0
97. Amend Sec.  1036.550 by revising the section heading and 
introductory text to read as follows:


Sec.  1036.550  Calculating CO2 emission rates.

    This section describes how to calculate official emission results 
for CO2.
* * * * *

0
98. Amend Sec.  1036.580 by revising the introductory text and 
paragraph (c) to read as follows:


Sec.  1036.580  Infrequently regenerating aftertreatment devices.

    For engines using aftertreatment technology with infrequent 
regeneration events that may occur during testing, take one of the 
following approaches to account for the emission impact of 
regeneration:
* * * * *
    (c) You may choose to make no adjustments to measured emission 
results if you determine that regeneration does not significantly 
affect emission levels for an engine family (or configuration) or if it 
is not practical to identify when regeneration occurs. You may omit 
adjustment factors under this paragraph (c) for individual pollutants 
under this paragraph (c) as appropriate. If you choose not to make 
adjustments under paragraph (a) or (b) of this section, your engines 
must meet emission standards for all testing, without regard to 
regeneration.
* * * * *

0
99. Amend Sec.  1036.605 by revising paragraphs (b) and (g) to read as 
follows:


Sec.  1036.605  Alternate emission standards for engines used in 
specialty vehicles.

* * * * *
    (b) Compression-ignition engines must be of a configuration that is 
identical to one that is certified under 40 CFR part 1039, and must be 
certified with a family emission limit for PM of 0.020 g/kW-hr using 
the same duty cycles that apply under 40 CFR part 1039.
* * * * *
    (g) Engines certified under this section may not generate or use 
emission credits under this part or under 40 CFR part 1039.

0
100. Amend Sec.  1036.610 by revising the section heading to read as 
follows:


Sec.  1036.610  Off-cycle technology credits.

* * * * *

0
101. Amend Sec.  1036.620 by:
0
a. Revising the section h[middot]eading, introductory text, and 
paragraph (a); and
0
b. Removing and reserving paragraphs (d) and (e).
    The revisions read as follows:


Sec.  1036.620  Alternate standards based on model year 2011 
compression-ignition engines.

    For model years 2014 through 2016, you may certify your 
compression-ignition engines to alternate fuel consumption standards as 
described in this section. However, you may not certify engines to 
these alternate standards if they are part of an averaging set in which 
you carry a balance of banked credits. For purposes of this section, 
you are deemed to carry credits in an averaging set if you carry 
credits from advanced technology that are allowed to be used in that 
averaging set.
    (a) The standards of this section are determined from the measured 
emission rate of the engine of the applicable baseline 2011 engine 
family or families as described in paragraphs (b) and (c) of this 
section. Calculate the CO2 emission rate of the baseline 
engine using the same equations used for showing compliance with the 
otherwise applicable fuel consumption standard. The alternate emission 
rate for light and medium heavy-duty vocational-certified engines 
(using the transient cycle) is equal to the baseline emission rate 
multiplied by 0.975. The alternate emission rate for tractor-certified 
engines (using the SET duty cycle) and all other Heavy HDE is equal to 
the baseline emission rate multiplied by 0.970. The in-use FEL for 
these engines is equal to the alternate standard multiplied by 1.03.
* * * * *


Sec.  1036.625  [Removed]

0
102. Remove Sec.  1036.625.

0
103. Revise and republish Sec.  1036.630 to read as follows:


Sec.  1036.630  Measurement of CO2 emissions for powertrain testing.

    For engines included in powertrain families under Sec.  1036.231, 
you may choose to include the corresponding engine emissions in your 
engine families under this part instead of (or in addition to) the 
otherwise applicable engine fuel maps.
    (a) If you choose to certify powertrain fuel maps in an engine 
family for fuel consumption standards, the declared values for 
powertrain testing become the standards that apply for selective 
enforcement audits and in-use testing. We may require that you provide 
to us the engine cycle (not normalized) corresponding to a given 
powertrain for each of the specified duty cycles.
    (b) If you choose to certify only fuel map values for an engine 
family for fuel consumption standards and to not certify values over 
powertrain cycles under Sec.  1036.545, we will not presume you are 
responsible for value over the powertrain cycles. However, where we 
determine that you are responsible in whole or in part for the emission 
exceedance in such cases, we may require that you participate in any 
recall of the affected vehicles.
    (c) If you split an engine family into subfamilies based on 
different fuel-mapping procedures as described in Sec.  1036.230(f)(2), 
the fuel-mapping procedures you identify for certifying each subfamily 
also apply for selective enforcement audits and in-use testing.


Sec.  1036.635  [Removed]

0
104. Remove Sec.  1036.635.

0
105. Amend Sec.  1036.701 by:
0
a. Revising paragraph (a); and
0
b. Removing and reserving paragraphs (h) through (j).
    The revisions read as follows:


Sec.  1036.701  General provisions.

    (a) You may average, bank, and trade (ABT) emission credits for 
purposes of certification as described in this subpart and in subpart B 
of this part to show compliance with the standards of Sec. Sec.  
1036.104. Participation in this program is voluntary. Note that 
certification to NOX standards in Sec.  1036.104 is based on 
a family emission limit (FEL) the NHTSA fuel efficiency program under 
49 CFR part 535 is based on a Family Certification Level (FCL).

[[Page 7782]]

This part refers to ``FEL/FCL'' to simultaneously refer to FELs for 
NOX and FCLs for NHTSA. Note also that subpart B of this 
part requires you to assign an FCL to all engine families, whether or 
not they participate in the ABT provisions of this subpart.
* * * * *

0
106. Revise Sec.  1036.705 to read as follows:


Sec.  1036.705  Generating and calculating emission credits.

    (a) The provisions of this section apply for calculating 
NOX emission credits.
    (b) For each participating family, calculate positive or negative 
emission credits relative to the otherwise applicable emission 
standard. Calculate positive emission credits for a family that has an 
FEL below the standard. Calculate negative emission credits for a 
family that has an FEL above the standard. Sum your positive and 
negative credits for the model year before rounding. Calculate emission 
credits to the nearest megagram (Mg) for each family using the 
following equation:

Emission credits (Mg) = (Std-FL) [middot] CF [middot] Volume [middot] 
UL [middot] c Eq. 1036.705-1

Where:

Std = the emission standard, in (mg NOX)/hp[middot]hr 
that applies under subpart B of this part for engines not 
participating in the ABT program of this subpart (the ``otherwise 
applicable standard'').
FL = the engine family's FEL, in mg/hp[middot]hr, rounded to the 
same number of decimal places as the emission standard.
CF = a transient cycle conversion factor (hp[middot]hr/mile), 
calculated by dividing the total (integrated) horsepower-hour over 
the applicable duty cycle by 6.3 miles for engines subject to spark-
ignition standards and 6.5 miles for engines subject to compression-
ignition standards. This represents the average work performed over 
the duty cycle.
Volume = the number of engines eligible to participate in the 
averaging, banking, and trading program within the given engine 
family during the model year, as described in paragraph (c) of this 
section.
UL = the useful life for the standard that applies for a given 
primary intended service class, in miles.
c = 10-9.

    Example for model year 2028 Heavy HDE generating NOX credits:

Std = 35 mg/hp[middot]hr
FEL = 20 mg/hp[middot]hr
CF = 9.78 hp[middot]hr/mile
Volume = 15,342
UL = 650,000 miles
c = 10-9
Emission credits = (35-20) [middot] 9.78 [middot] 15,342 [middot] 
650,000 [middot] 10-9
Emission credits = 1,463 Mg

    (c) Compliance with the requirements of this subpart is determined 
at the end of the model year by calculating emission credits based on 
actual production volumes, excluding the following engines:
    (1) Engines that you do not certify to the standards of this part 
because they are permanently exempted under subpart G of this part or 
under 40 CFR part 1068.
    (2) Exported engines.
    (3) Engines not subject to the requirements of this part, such as 
those excluded under Sec.  1036.5.
    (4) Engines certified to state emission standards that are 
different than the emission standards referenced in this section, and 
intended for sale in a state that has adopted those emission standards.
    (5) Any other engines if we indicate elsewhere in this part that 
they are not to be included in the calculations of this subpart.

0
107. Amend Sec.  1036.710 by revising paragraph (b) to read as follows:


Sec.  1036.710  Averaging.

* * * * *
    (b) You may certify one or more engine families to an FEL/FCL above 
the applicable standard, subject to any applicable FEL caps and other 
the provisions in subpart B of this part, if you show in your 
application for certification that your projected balance of all 
emission-credit transactions in that model year is greater than or 
equal to zero, or that a negative balance is allowed under Sec.  
1036.745 for NHTSA's fuel efficiency program.
* * * * *

0
108. Amend Sec.  1036.720 by revising paragraph (c) to read as follows:


Sec.  1036.720  Trading.

* * * * *
    (c) If a negative emission credit balance results from a 
transaction, both the buyer and seller are liable, except in cases we 
deem to involve fraud. See Sec.  1036.255(e) for cases involving fraud. 
We may void the certificates of all engine families participating in a 
trade that results in a manufacturer having a negative balance of 
emission credits. See Sec.  1036.745 for NHTSA's fuel efficiency 
program.

0
109. Amend Sec.  1036.725 by revising paragraph (b)(1) to read as 
follows:


Sec.  1036.725  Required information for certification.

* * * * *
    (b) * * *
    (1) A statement that, to the best of your belief, you will not have 
a negative balance of emission credits for any averaging set when all 
emission credits are calculated at the end of the year. For NHTSA's 
fuel efficiency program, you may include a statement that you will have 
a negative balance of emission credits for one or more averaging sets, 
but that it is allowed under Sec.  1036.745.
* * * * *

0
110. Amend Sec.  1036.730 by revising paragraphs (c)(1) and (f)(1) to 
read as follows:


Sec.  1036.730  ABT reports.

* * * * *
    (c) * * *
    (1) Show that your net balance of emission credits from all your 
participating engine families in each averaging set in the applicable 
model year is not negative, except as allowed under Sec.  1036.745 for 
NHTSA's fuel efficiency program. Your credit tracking must account for 
the limitation on credit life under Sec.  1036.740(d).
* * * * *
    (f) * * *
    (1) If you notify us by the deadline for submitting the final 
report that errors mistakenly decreased your balance of emission 
credits, you may correct the errors and recalculate the balance of 
emission credits.
* * * * *

0
111. Amend Sec.  1036.740 by:
0
a. Removing and reserving paragraphs (b) and (c); and
0
b. Revising paragraph (d).
    The revision reads as follows:


Sec.  1036.740  Restrictions for using emission credits.

* * * * *
    (d) Credit life. NOX credits may be used only for five 
model years after the year in which they are generated. For example, 
credits you generate in model year 2027 may be used to demonstrate 
compliance with emission standards only through model year 2032.
* * * * *

0
112. Revise Sec.  1036.745 to read as follows:


Sec.  1036.745  End-of-year credit deficits.

    See 49 CFR 535.7 for provisions related to credit deficits for 
NHTSA's fuel consumption credits.

0
113. Amend Sec.  1036.750 by revising paragraph (b) to read as follows:


Sec.  1036.750  Consequences for noncompliance.

* * * * *
    (b) You may certify your engine family to an FEL above an 
applicable standard based on a projection that you will have enough 
emission credits to offset the deficit for the engine family.
* * * * *

[[Page 7783]]


0
114. Revise Sec.  1036.755 to read as follows:


Sec.  1036.755  Information provided to the Department of 
Transportation.

    After receipt of each manufacturer's final report as specified in 
Sec.  1036.730 and completion of any verification testing required to 
validate the manufacturer's submitted final data, we will issue a 
report to the Department of Transportation with CO2 emission 
information and will verify the accuracy of each manufacturer's 
equivalent fuel consumption data required by NHTSA under 49 CFR 535.8. 
We will send a report to DOT for each engine manufacturer based on each 
regulatory category and subcategory, including sufficient information 
for NHTSA to determine fuel consumption and associated credit values. 
See 49 CFR 535.8 to determine if NHTSA deems submission of this 
information to EPA to also be a submission to NHTSA.

0
115. Revise and republish Sec.  1036.801 to read as follows:


Sec.  1036.801  Definitions.

    The following definitions apply to this part. The definitions apply 
to all subparts unless we note otherwise. All undefined terms have the 
meaning the Act gives to them. The definitions follow:
    Act means the Clean Air Act, as amended, 42 U.S.C. 7401-7671q.
    Adjustable parameter has the meaning given in 40 CFR 1068.50.
    Advanced technology means technology certified under 40 CFR 
86.1819-14(k)(7), Sec.  1036.615, or 40 CFR 1037.615.
    Aftertreatment means relating to a catalytic converter, particulate 
filter, or any other system, component, or technology mounted 
downstream of the exhaust valve (or exhaust port) whose design function 
is to decrease emissions in the engine exhaust before it is exhausted 
to the environment. Exhaust gas recirculation (EGR) and turbochargers 
are not aftertreatment.
    Aircraft means any vehicle capable of sustained air travel more 
than 100 feet above the ground.
    Alcohol-fueled engine means an engine that is designed to run using 
an alcohol fuel. For purposes of this definition, alcohol fuels do not 
include fuels with a nominal alcohol content below 25 percent by 
volume.
    Automated manual transmission (AMT) means a transmission that 
operates mechanically similar to a manual transmission, except that an 
automated clutch actuator controlled by the onboard computer disengages 
and engages the drivetrain instead of a human driver. An automated 
manual transmission does not include a torque converter or a clutch 
pedal controllable by the driver.
    Automatic transmission (AT) means a transmission with a torque 
converter (or equivalent) that uses computerize or other internal 
controls to shift gears in response to a single driver input for 
controlling vehicle speed. Note that automatic manual transmissions are 
not automatic transmissions because they do not include torque 
converters.
    Auxiliary emission control device means any element of design that 
senses temperature, motive speed, engine speed (r/min), transmission 
gear, or any other parameter for the purpose of activating, modulating, 
delaying, or deactivating the operation of any part of the emission 
control system.
    Averaging set has the meaning given in Sec.  1036.740.
    Axle ratio or Drive axle ratio (ka) means the dimensionless number 
representing the angular speed of the transmission output shaft divided 
by the angular speed of the drive axle.
    Calibration means the set of specifications and tolerances specific 
to a particular design, version, or application of a component or 
assembly capable of functionally describing its operation over its 
working range.
    Carbon-containing fuel has the meaning given in 40 CFR 1065.1001.
    Carryover means relating to certification based on emission data 
generated from an earlier model year as described in Sec.  1036.235(d).
    Certification means relating to the process of obtaining a 
certificate of conformity for an engine family that complies with the 
emission standards and requirements in this part.
    Certified emission level means the highest deteriorated emission 
level in an engine family for a given pollutant from the applicable 
transient or steady-state testing, rounded to the same number of 
decimal places as the applicable standard.
    Charge-depleting has the meaning given in 40 CFR 1066.1001.
    Charge-sustaining has the meaning given in 40 CFR 1066.1001.
    Complete vehicle means a vehicle meeting the definition of complete 
vehicle in 40 CFR 1037.801 when it is first sold as a vehicle. For 
example, where a vehicle manufacturer sells an incomplete vehicle to a 
secondary vehicle manufacturer, the vehicle is not a complete vehicle 
under this part, even after its final assembly.
    Compression-ignition means relating to a type of reciprocating, 
internal-combustion engine that is not a spark-ignition engine. Note 
that Sec.  1036.1 also deems gas turbine engines and other engines to 
be compression-ignition engines.
    Crankcase emissions means airborne substances emitted to the 
atmosphere from any part of the engine crankcase's ventilation or 
lubrication systems. The crankcase is the housing for the crankshaft 
and other related internal parts.
    Critical emission-related component has the meaning given in 40 CFR 
1068.30.
    Defeat device has the meaning given in Sec.  1036.115(h).
    Designated Compliance Officer means one of the following:
    (1) For engines subject to compression-ignition standards, 
Designated Compliance Officer means Director, Diesel Engine Compliance 
Center, U.S. Environmental Protection Agency, 2000 Traverwood Drive, 
Ann Arbor, MI 48105; [email protected]; www.epa.gov/ve-certification.
    (2) For engines subject to spark-ignition standards, Designated 
Compliance Officer means Director, Gasoline Engine Compliance Center, 
U.S. Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, 
MI 48105; [email protected]; www.epa.gov/ve-certification.
    Deteriorated emission level means the emission level that results 
from applying the appropriate deterioration factor to the official 
emission result of the emission-data engine. Note that where no 
deterioration factor applies, references in this part to the 
deteriorated emission level mean the official emission result.
    Deterioration factor means the relationship between emissions at 
the end of useful life (or point of highest emissions if it occurs 
before the end of useful life) and emissions at the low-hour/low-
mileage point, expressed in one of the following ways:
    (1) For multiplicative deterioration factors, the ratio of 
emissions at the end of useful life (or point of highest emissions) to 
emissions at the low-hour point.
    (2) For additive deterioration factors, the difference between 
emissions at the end of useful life (or point of highest emissions) and 
emissions at the low-hour point.
    Diesel exhaust fluid (DEF) means a liquid reducing agent (other 
than the engine fuel) used in conjunction with selective catalytic 
reduction to reduce NOX emissions. Diesel exhaust fluid is 
generally understood to be an aqueous solution of urea conforming to 
the specifications of ISO 22241.
    Drive idle means idle operation during which the vehicle operator

[[Page 7784]]

remains in the vehicle cab, as evidenced by engaging the brake or 
clutch pedals, or by other indicators we approve.
    Dual-fuel means relating to an engine designed for operation on two 
different types of fuel but not on a continuous mixture of those fuels 
(see Sec.  1036.601(d)). For purposes of this part, such an engine 
remains a dual-fuel engine even if it is designed for operation on 
three or more different fuels.
    Electronic control module (ECM) means an engine's electronic device 
that uses data from engine sensors to control engine parameters.
    Emergency vehicle means a vehicle that meets one of the following 
criteria:
    (1) It is an ambulance or a fire truck.
    (2) It is a vehicle that we have determined will likely be used in 
emergency situations where emission control function or malfunction may 
cause a significant risk to human life. For example, we would consider 
a truck that is certain to be retrofitted with a slip-on firefighting 
module to become an emergency vehicle, even though it was not initially 
designed to be a fire truck. Also, a mobile command center that is 
unable to manually regenerate its DPF while on duty could be an 
emergency vehicle. In making this determination, we may consider any 
factor that has an effect on the totality of the actual risk to human 
life. For example, we may consider how frequently a vehicle will be 
used in emergency situations or how likely it is that the emission 
controls will cause a significant risk to human life when the vehicle 
is used in emergency situations. We would not consider the truck in the 
example above to be an emergency vehicle if there is merely a 
possibility (rather than a certainty) that it will be retrofitted with 
a slip-on firefighting module.
    Emission control system means any device, system, or element of 
design that controls or reduces the emissions of regulated pollutants 
from an engine.
    Emission-data engine means an engine that is tested for 
certification. This includes engines tested to establish deterioration 
factors.
    Emission-related component has the meaning given in 40 CFR part 
1068, appendix A.
    Emission-related maintenance means maintenance that substantially 
affects emissions or is likely to substantially affect emission 
deterioration.
    Engine configuration means a unique combination of engine hardware 
and calibration (related to the emission standards) within an engine 
family, which would include hybrid components for engines certified as 
hybrid engines and hybrid powertrains. Engines within a single engine 
configuration differ only with respect to normal production variability 
or factors unrelated to compliance with emission standards.
    Engine family has the meaning given in Sec.  1036.230.
    Excluded means relating to engines that are not subject to some or 
all of the requirements of this part as follows:
    (1) An engine that has been determined not to be a heavy-duty 
engine is excluded from this part.
    (2) Certain heavy-duty engines are excluded from the requirements 
of this part under Sec.  1036.5.
    (3) Specific regulatory provisions of this part may exclude a 
heavy-duty engine generally subject to this part from one or more 
specific standards or requirements of this part.
    Exempted has the meaning given in 40 CFR 1068.30.
    Exhaust gas recirculation means a technology that reduces emissions 
by routing exhaust gases that had been exhausted from the combustion 
chamber(s) back into the engine to be mixed with incoming air before or 
during combustion. The use of valve timing to increase the amount of 
residual exhaust gas in the combustion chamber(s) that is mixed with 
incoming air before or during combustion is not considered exhaust gas 
recirculation for the purposes of this part.
    Family certification level (FCL) means a CO2 emission 
level declared by the manufacturer that is at or above emission results 
for all emission-data engines.
    Family emission limit (FEL) means one of the following:
    (1) For NOX emissions, family emission limit means a 
NOX emission level declared by the manufacturer to serve in 
place of an otherwise applicable emission standard under the ABT 
program in subpart H of this part. The FEL serves as the emission 
standard for the engine family with respect to all required testing.
    (2) For NHTSA's fuel efficiency program under 49 CFR part 535, 
family emission limit means a fuel consumption level that serves as the 
standard that applies for testing individual certified engines. The 
CO2 FEL is equal to the CO2 FCL multiplied by 
1.03 and rounded to the same number of decimal places as the standard.
    Federal Test Procedure (FTP) means the applicable transient duty 
cycle described in Sec.  1036.512 designed to measure exhaust emissions 
during urban driving.
    Final drive ratio (kd) means the dimensionless number representing 
the angular speed of the transmission input shaft divided by the 
angular speed of the drive axle when the vehicle is operating in its 
highest available gear. The final drive ratio is the transmission gear 
ratio (in the highest available gear) multiplied by the drive axle 
ratio.
    Flexible-fuel means relating to an engine designed for operation on 
any mixture of two or more different types of fuels (see Sec.  
1036.601(d)).
    Fuel type means a general category of fuels such as diesel fuel, 
gasoline, or natural gas. There can be multiple grades within a single 
fuel type, such as premium gasoline, regular gasoline, or gasoline with 
10 percent ethanol.
    Gear ratio or Transmission gear ratio (kg) means the 
dimensionless number representing the angular speed of the 
transmission's input shaft divided by the angular speed of the 
transmission's output shaft when the transmission is operating in a 
specific gear.
    Good engineering judgment has the meaning given in 40 CFR 1068.30. 
See 40 CFR 1068.5 for the administrative process we use to evaluate 
good engineering judgment.
    Greenhouse gas Emissions Model (GEM) means the GEM simulation tool 
described in 40 CFR 1037.520. Note that an updated version of GEM 
applies starting in model year 2021.
    Gross vehicle weight rating (GVWR) means the value specified by the 
vehicle manufacturer as the maximum design loaded weight of a single 
vehicle, consistent with good engineering judgment.
    Heavy-duty engine means any engine which the engine manufacturer 
could reasonably expect to be used for motive power in a heavy-duty 
vehicle. For purposes of this definition in this part, the term 
``engine'' includes internal combustion engines and other devices that 
convert chemical fuel into motive power. For example, a gas turbine 
used in a heavy-duty vehicle is a heavy-duty engine.
    Heavy-duty vehicle means any motor vehicle above 8,500 pounds GVWR. 
An incomplete vehicle is also a heavy-duty vehicle if it has a curb 
weight above 6,000 pounds or a basic vehicle frontal area greater than 
45 square feet. Curb weight and basic vehicle frontal area have the 
meaning given in 40 CFR 86.1803-01.
    Hybrid means relating to an engine or powertrain that includes a 
Rechargeable Energy Storage System. Hybrid engines store and recover 
energy in a way that is integral to the engine or otherwise upstream of 
the vehicle's transmission. Examples of hybrid engines include

[[Page 7785]]

engines with hybrid components connected to the front end of the engine 
(P0), connected to the crankshaft before the clutch (P1), or connected 
between the clutch and the transmission where the clutch upstream of 
the hybrid feature is in addition to the transmission clutch or 
clutches (P2). Engine-based systems that recover kinetic energy to 
power an electric heater in the aftertreatment are themselves not 
sufficient to qualify as a hybrid engine. The provisions in this part 
that apply for hybrid powertrains apply equally for hybrid engines, 
except as specified. Note that certain provisions in this part treat 
hybrid powertrains intended for vehicles that include regenerative 
braking different than those intended for vehicles that do not include 
regenerative braking. The definition of hybrid includes plug-in hybrid 
electric powertrains.
    Hydrocarbon (HC) has the meaning given in 40 CFR 1065.1001.
    Identification number means a unique specification (for example, a 
model number/serial number combination) that allows someone to 
distinguish a particular engine from other similar engines.
    Incomplete vehicle means a vehicle meeting the definition of 
incomplete vehicle in 40 CFR 1037.801 when it is first sold (or 
otherwise delivered to another entity) as a vehicle.
    Innovative technology means technology certified under Sec.  
1036.610 (also described as ``off-cycle technology'').
    Liquefied petroleum gas (LPG) means a liquid hydrocarbon fuel that 
is stored under pressure and is composed primarily of nonmethane 
compounds that are gases at atmospheric conditions. Note that, although 
this commercial term includes the word ``petroleum'', LPG is not 
considered to be a petroleum fuel under the definitions of this 
section.
    Low-hour means relating to an engine that has stabilized emissions 
and represents the undeteriorated emission level. This would generally 
involve less than 300 hours of operation for engines with 
NOX aftertreatment and 125 hours of operation for other 
engines.
    Manual transmission (MT) means a transmission that requires the 
driver to shift the gears and manually engage and disengage the clutch.
    Manufacture means the physical and engineering process of 
designing, constructing, and/or assembling a heavy-duty engine or a 
heavy-duty vehicle.
    Manufacturer has the meaning given in 40 CFR 1068.30.
    Medium-duty passenger vehicle has the meaning given in 40 CFR 
86.1803.
    Model year means the manufacturer's annual new model production 
period, except as restricted under this definition. It must include 
January 1 of the calendar year for which the model year is named, may 
not begin before January 2 of the previous calendar year, and it must 
end by December 31 of the named calendar year. Manufacturers may not 
adjust model years to circumvent or delay compliance with emission 
standards or to avoid the obligation to certify annually.
    Motorcoach means a heavy-duty vehicle designed for carrying 30 or 
more passengers over long distances. Such vehicles are characterized by 
row seating, rest rooms, and large luggage compartments, and facilities 
for stowing carry-on luggage.
    Motor vehicle has the meaning given in 40 CFR 85.1703.
    Natural gas means a fuel whose primary constituent is methane.
    Neat has the meaning given in 40 CFR 1065.1001.
    New motor vehicle engine has the meaning given in the Act. This 
generally means a motor vehicle engine meeting any of the following:
    (1) A motor vehicle engine for which the ultimate purchaser has 
never received the equitable or legal title is a new motor vehicle 
engine. This kind of engine might commonly be thought of as ``brand 
new'' although a new motor vehicle engine may include previously used 
parts. Under this definition, the engine is new from the time it is 
produced until the ultimate purchaser receives the title or places it 
into service, whichever comes first.
    (2) An imported motor vehicle engine is a new motor vehicle engine 
if it was originally built on or after January 1, 1970.
    (3) Any motor vehicle engine installed in a new motor vehicle.
    Noncompliant engine means an engine that was originally covered by 
a certificate of conformity, but is not in the certified configuration 
or otherwise does not comply with the conditions of the certificate.
    Nonconforming engine means an engine not covered by a certificate 
of conformity that would otherwise be subject to emission standards.
    Nonmethane hydrocarbon (NMHC) means the sum of all hydrocarbon 
species except methane, as measured according to 40 CFR part 1065.
    Nonmethane hydrocarbon equivalent (NMHCE) has the meaning given in 
40 CFR 1065.1001.
    Nonmethane nonethane hydrocarbon equivalent (NMNEHC) has the 
meaning given in 40 CFR 1065.1001.
    Off-cycle technology means technology certified under Sec.  
1036.610 (also described as ``innovative technology'').
    Official emission result means the measured emission rate for an 
emission-data engine on a given duty cycle before the application of 
any deterioration factor, but after the applicability of any required 
regeneration or other adjustment factors.
    Owners manual means a document or collection of documents prepared 
by the engine or vehicle manufacturer for the owner or operator to 
describe appropriate engine maintenance, applicable warranties, and any 
other information related to operating or keeping the engine. The 
owners manual is typically provided to the ultimate purchaser at the 
time of sale. The owners manual may be in paper or electronic format.
    Oxides of nitrogen has the meaning given in 40 CFR 1065.1001.
    Percent has the meaning given in 40 CFR 1065.1001. Note that this 
means percentages identified in this part are assumed to be infinitely 
precise without regard to the number of significant figures. For 
example, one percent of 1,493 is 14.93.
    Placed into service means put into initial use for its intended 
purpose, excluding incidental use by the manufacturer or a dealer.
    Preliminary approval means approval granted by an authorized EPA 
representative prior to submission of an application for certification, 
consistent with the provisions of Sec.  1036.210.
    Primary intended service class has the meaning given in Sec.  
1036.140.
    Rechargeable Energy Storage System (RESS) has the meaning given in 
40 CFR 1065.1001.
    Relating to as used in this section means relating to something in 
a specific, direct manner. This expression is used in this section only 
to define terms as adjectives and not to broaden the meaning of the 
terms.
    Revoke has the meaning given in 40 CFR 1068.30.
    Round has the meaning given in 40 CFR 1065.1001.
    Sample means the collection of engines selected from the population 
of an engine family for emission testing. This may include testing for 
certification, production-line testing, or in-use testing.
    Scheduled maintenance means adjusting, removing, disassembling, 
cleaning, or replacing components or systems periodically to keep a 
part or

[[Page 7786]]

system from failing, malfunctioning, or wearing prematurely.
    Small manufacturer means a manufacturer meeting the criteria 
specified in 13 CFR 121.201. The employee and revenue limits apply to 
the total number of employees and total revenue together for all 
affiliated companies (as defined in 40 CFR 1068.30). Note that 
manufacturers with low production volumes may or may not be ``small 
manufacturers''.
    Spark-ignition means relating to a gasoline-fueled engine or any 
other type of engine with a spark plug (or other sparking device) and 
with operating characteristics significantly similar to the theoretical 
Otto combustion cycle. Spark-ignition engines usually use a throttle to 
regulate intake air flow to control power during normal operation.
    Stop-start means a vehicle technology that automatically turns the 
engine off when the vehicle is stopped.
    Steady-state has the meaning given in 40 CFR 1065.1001. This 
includes idle testing where engine speed and load are held at a finite 
set of nominally constant values.
    Suspend has the meaning given in 40 CFR 1068.30.
    Test engine means an engine in a sample.
    Tractor means a vehicle meeting the definition of ``tractor'' in 40 
CFR 1037.801, but not classified as a ``vocational tractor'' under 40 
CFR 1037.630, or relating to such a vehicle.
    Ultimate purchaser means, with respect to any new engine or 
vehicle, the first person who in good faith purchases such new engine 
or vehicle for purposes other than resale.
    United States has the meaning given in 40 CFR 1068.30.
    Upcoming model year means for an engine family the model year after 
the one currently in production.
    U.S.-directed production volume means the number of engines, 
subject to the requirements of this part, produced by a manufacturer 
for which the manufacturer has a reasonable assurance that sale was or 
will be made to ultimate purchasers in the United States.
    Vehicle has the meaning given in 40 CFR 1037.801.
    Vocational vehicle means a vehicle meeting the definition of 
``vocational'' vehicle in 40 CFR 1037.801.
    Void has the meaning given in 40 CFR 1068.30.
    We (us, our) means the Administrator of the Environmental 
Protection Agency and any authorized representatives for issues related 
to criteria pollutant standards. In the case of testing, compliance, 
and approvals related to fuel consumption standards, ``we (us, our)'' 
includes the Administrator of the National Highway Traffic Safety 
Administration (NHTSA) and any authorized representatives.


Sec.  1036.805  [Amended]

0
116. Amend Sec.  1036.805 in table 1 to paragraph (a) by removing the 
entries for ``CH4'' and ``N2O''.

0
117. Amend Sec.  1036.815 by revising paragraph (b) to read as follows:


Sec.  1036.815  Confidential information.

* * * * *
    (b) Emission data or information that is publicly available cannot 
be treated as confidential business information as described in 40 CFR 
1068.11. Data that vehicle manufacturers need for demonstrating 
compliance with standards, including fuel-consumption data as described 
in Sec. Sec.  1036.535 and 1036.545, also qualify as emission data for 
purposes of confidentiality determinations.

PART 1037--CONTROL OF EMISSIONS FROM NEW HEAVY-DUTY MOTOR VEHICLES

0
118. The authority citation for part 1037 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.


0
119. Amend Sec.  1037.1 by adding paragraph (c) to read as follows:


Sec.  1037.1  Applicability.

* * * * *
    (c) This part establishes criteria pollutant and evaporative and 
refueling standards as described in Sec.  1037.101. This part does not 
establish standards for CO2 or other greenhouse gas 
emissions, but it includes certification and testing provisions related 
to CO2 emissions to support the fuel consumption standards 
for heavy-duty vehicles adopted by the Department of Transportation's 
National Highway Traffic and Safety Administration (NHTSA) under 49 CFR 
part 535.


Sec.  1037.5  [Amended]

0
120. Amend Sec.  1037.5 by removing and reserving paragraphs (c) and 
(d).

0
121. Amend Sec.  1037.15 by revising paragraph (a) to read as follows:


Sec.  1037.15  Do any other regulation parts apply to me?

    (a) Parts 1065 and 1066 of this chapter describe procedures and 
equipment specifications for testing engines and vehicles to measure 
exhaust emissions. Subpart F of this part 1037 describes how to apply 
the testing provisions of 40 CFR parts 1065 and 1066.
* * * * *


Sec.  1037.101  [Amended]

0
122. Amend Sec.  1037.101 by removing and reserving paragraphs (a)(2) 
and (b)(2).

0
123. Amend Sec.  1037.102 by revising the section heading and adding 
paragraph (c) to read as follows:


Sec.  1037.102  Criteria pollutant exhaust emission standards--NOX, HC, 
PM, and CO.

* * * * *
    (c) Starting in model year 2024, auxiliary power units installed on 
new tractors, including tractors that are glider vehicles or tractors 
with no installed propulsion engine, must be certified to the PM 
emission standard specified in 40 CFR 1039.699. For model years 2021 
through 2023, the APU engine must be certified under 40 CFR part 1039 
with a deteriorated emission level for PM at or below 0.15 g/kW-hr. 
Selling, offering for sale, or introducing or delivering into commerce 
in the United States or importing into the United States a new tractor 
subject to this standard is a violation of 40 CFR 1068.101(a)(1) unless 
the auxiliary power unit has a valid certificate of conformity and the 
required label showing that it meets the PM standard specified in 40 
CFR 1039.699 as described in this paragraph (c).


Sec.  Sec.  1037.105 and 1037.106  [Removed]

0
124. Remove Sec. Sec.  1037.105 and 1037.106.


Sec.  1037.115  [Amended]

0
125. Amend Sec.  1037.115 by removing paragraphs (e) and (f).

0
126. Revise and republish Sec.  1037.120 to read as follows:


Sec.  1037.120  Emission-related warranty requirements.

    (a) General requirements. You must warrant to the ultimate 
purchaser and each subsequent purchaser that each new vehicle, 
including all parts of its emission control system, meets two 
conditions:
    (1) It is designed, built, and equipped so it conforms at the time 
of sale to the ultimate purchaser with the requirements of this part.
    (2) It is free from defects in materials and workmanship that cause 
the vehicle to fail to conform to the requirements of this part during 
the applicable warranty period.
    (b) Warranty period. (1) Your emission-related warranty must be 
valid for at least:
    (i) 5 years or 50,000 miles for Light HDV.
    (ii) 5 years or 100,000 miles for heavy-duty vehicles above 19,500 
pounds GVWR.

[[Page 7787]]

    (2) You may offer an emission-related warranty more generous than 
we require. The emission-related warranty for the vehicle may not be 
shorter than any basic mechanical warranty you provide to that owner 
without charge for the vehicle. Similarly, the emission-related 
warranty for any component may not be shorter than any warranty you 
provide to that owner without charge for that component. This means 
that your warranty for a given vehicle may not treat emission-related 
and nonemission-related defects differently for any component. The 
warranty period begins when the vehicle is placed into service.
    (c) Components covered. The emission-related warranty covers fuel 
cell stacks, RESS, and other components used with battery electric 
vehicles and fuel cell electric vehicles. The emission-related warranty 
covers all components whose failure would increase a vehicle's 
evaporative and refueling emissions (for vehicles subject to 
evaporative and refueling emission standards). The emission-related 
warranty covers components that are part of your certified 
configuration even if another company produces the component.
    (d) Limited applicability. You may deny warranty claims under this 
section if the operator caused the problem through improper maintenance 
or use, as described in 40 CFR 1068.115.
    (e) Owners manual. Describe in the owners manual the emission-
related warranty provisions from this section that apply to the 
vehicle.

0
127. Revise Sec.  1037.125 to read as follows:


Sec.  1037.125  Maintenance instructions and allowable maintenance.

    Give the ultimate purchaser of each new vehicle written 
instructions for properly maintaining and using the emission control 
system.


Sec.  1037.135  [Amended]

0
128. Amend Sec.  1037.135 by removing and reserving paragraphs (c)(6) 
and (7).

0
129. Amend Sec.  1037.140 by revising paragraphs (g) introductory text 
and (g)(6) and (7) to read as follows:


Sec.  1037.140  Classifying vehicles and determining vehicle 
parameters.

* * * * *
    (g) The provisions of this part relating to NHTSA's fuel efficiency 
program under 49 CFR part 535 apply to specific vehicle service classes 
as follows:
* * * * *
    (6) In certain circumstances, you may certify vehicles to standards 
that apply for a different vehicle service class. If you optionally 
certify vehicles to different standards, those vehicles are subject to 
all the regulatory requirements as if the standards were mandatory.
    (7) Custom chassis vehicles are subject to the following vehicle 
service classes instead of the other provisions in this section:
    (i) School buses and motor homes are considered ``Medium HDV''.
    (ii) All other custom-chassis are considered ``Heavy HDV''.
* * * * *

0
130. Revise and republish Sec.  1037.150 to read as follows:


Sec.  1037.150  Interim provisions.

    The provisions in this section apply instead of other provisions in 
this part.
    (a) Incentives for early introduction. The provisions of this 
paragraph (a) apply with respect to vehicles produced in model years 
before 2014. Manufacturers may voluntarily certify in model year 2013 
(or earlier model years for electric vehicles) to the fuel consumption 
standards of 49 CFR part 535.
    (1) This paragraph (a)(1) applies for regulatory subcategories 
subject to the standards of 49 CFR part 535. Except as specified in 
paragraph (a)(3) of this section, to generate early credits under this 
paragraph (a)(1) for any vehicles other than electric vehicles, you 
must certify your entire U.S.-directed production volume within the 
regulatory subcategory to the standards of 49 CFR part 535. Except as 
specified in paragraph (a)(4) of this section, if some vehicle families 
within a regulatory subcategory are certified after the start of the 
model year, you may generate credits only for production that occurs 
after all families are certified. For example, if you produce three 
vehicle families in an averaging set and you receive your certificates 
for those families on January 4, 2013, March 15, 2013, and April 24, 
2013, you may not generate credits for model year 2013 production in 
any of the families that occurs before April 24, 2013. Calculate 
credits relative to the standard that would apply in model year 2014 
using the equations in subpart H of this part. You may bank credits 
equal to the surplus credits you generate under this paragraph (a) 
multiplied by 1.50. For example, if you have 1.0 Mg of surplus credits 
for model year 2013, you may bank 1.5 Mg of credits. Credit deficits 
for an averaging set prior to model year 2014 do not carry over to 
model year 2014. These credits may be used to show compliance with the 
standards of this part for 2014 and later model years. We recommend 
that you notify us of your intent to use this paragraph (a)(1) before 
submitting your applications.
    (2) [Reserved]
    (3) You may generate credits for the number of additional SmartWay 
designated tractors (relative to your 2012 production), provided you do 
not generate credits for those vehicles under paragraph (a)(1) of this 
section. Calculate credits for each regulatory subcategory relative to 
the standard that would apply in model year 2014 using the equations in 
subpart H of this part. Use a production volume equal to the number of 
designated model year 2013 SmartWay tractors minus the number of 
designated model year 2012 SmartWay tractors. You may bank credits 
equal to the surplus credits you generate under this paragraph (a)(3) 
multiplied by 1.50. Your 2012 and 2013 model years must be equivalent 
in length.
    (4) This paragraph (a)(4) applies where you do not receive your 
final certificate in a regulatory subcategory within 30 days of 
submitting your final application for that subcategory. Calculate your 
credits for all production that occurs 30 days or more after you submit 
your final application for the subcategory.
    (b) Phase 1 coastdown procedures. For tractors subject to Phase 1 
standards, the default method for measuring drag area (CdA) 
is the coastdown procedure specified in 40 CFR part 1066, subpart D. 
This includes preparing the tractor and the standard trailer with 
wheels meeting specifications of Sec.  1037.528(b) and submitting 
information related to your coastdown testing under Sec.  1037.528(h).
    (c) Small manufacturers. The following provisions apply for 
qualifying small manufacturers:
    (1) The fuel consumption standards under 49 CFR part 535 are 
optional for small manufacturers producing vehicles with a date of 
manufacture before January 1, 2022. In addition, small manufacturers 
producing vehicles that run on any fuel other than gasoline, E85, or 
diesel fuel may delay complying with every later standard under this 
part by one model year.
    (2) Qualifying manufacturers must notify the Designated Compliance 
Officer each model year before introducing excluded vehicles into U.S. 
commerce. This notification must include a description of the 
manufacturer's qualification as a small business under 13 CFR 121.201.
    (3) Small manufacturers may meet Phase 1 standards instead of Phase 
2 standards in the first year Phase 2 standards apply to them if they 
voluntarily comply with the Phase 1 standards for the full preceding 
year.

[[Page 7788]]

Specifically, small manufacturers may certify their model year 2022 
vehicles to the Phase 1 fuel consumption standards under 49 CFR part 
535 if they certify all the vehicles from their annual production 
volume included in emission credit calculations for the Phase 1 
standards starting on or before January 1, 2021.
    (4) See paragraphs (r), (t), (u), and (w) of this section for 
additional allowances for small manufacturers.
    (d)-(f) [Reserved]
    (g) Compliance date. Compliance with the standards of this part was 
optional prior to January 1, 2014. This means that if your 2014 model 
year begins before January 1, 2014, you may certify for a partial model 
year that begins on January 1, 2014, and ends on the day your model 
year would normally end.
    (h) Off-road vehicle exemption. (1) Vocational vehicles with a date 
of manufacture before January 1, 2021, automatically qualify for an 
exemption under Sec.  1037.631 if the tires installed on the vehicle 
have a maximum speed rating at or below 55 miles per hour.
    (2) In unusual circumstances, vehicle manufacturers may ask us to 
exempt vehicles under Sec.  1037.631 based on other criteria that are 
equivalent to those specified in Sec.  1037.631(a); however, we will 
normally not grant relief in cases where the vehicle manufacturer has 
credits or can otherwise comply with applicable standards. Request 
approval for an exemption under this paragraph (h) before you produce 
the subject vehicles.
    (i) Limited carryover from Phase 1 to Phase 2. The provisions for 
carryover data in Sec.  1037.235(d) do not allow you to use aerodynamic 
test results from Phase 1 to support a compliance demonstration for 
Phase 2 certification.
    (j) Limited prohibition related to early model year engines. The 
provisions of this paragraph (j) apply only for vehicles that have a 
date of manufacture before January 1, 2018. See Sec.  1037.635 for 
related provisions that apply in later model years. The prohibition in 
Sec.  1037.601 against introducing into U.S. commerce a vehicle 
containing an engine not certified to the standards applicable for the 
calendar year of installation does not apply for vehicles using model 
year 2014 or 2015 spark-ignition engines, or any model year 2013 or 
earlier engines.
    (k) Verifying drag areas from in-use tractors. This paragraph (k) 
applies for tractors instead of Sec.  1037.401(b) through model year 
2020. We may measure the drag area of your vehicles after they have 
been placed into service. To account for measurement variability, your 
vehicle is deemed to conform to the regulations of this part with 
respect to aerodynamic performance if we measure its drag area to be at 
or below the maximum drag area allowed for the bin above the bin to 
which you certified (for example, Bin II if you certified the vehicle 
to Bin III), unless we determine that you knowingly produced the 
vehicle to have a higher drag area than is allowed for the bin to which 
it was certified.
    (l) [Reserved]
    (m) Loose engine sales. Manufacturers may certify certain spark-
ignition engines along with chassis-certified heavy-duty vehicles where 
they are identical to engines used in those vehicles as described in 40 
CFR 86.1819-14(k)(8). Vehicles in which those engines are installed are 
subject to standards under 49 CFR part 535.
    (n) Transition to engine-based model years. The following 
provisions apply for production and ABT reports during the transition 
to engine-based model year determinations for vehicles in 2020 and 
2021:
    (1) If you install model year 2020 or earlier engines in your 
vehicles in calendar year 2020, include all those Phase 1 vehicles in 
your production and ABT reports related to model year 2020 compliance, 
although we may require you identify these separately from vehicles 
produced in calendar year 2019.
    (2) If you install model year 2020 engines in your vehicles in 
calendar year 2021, submit production and ABT reports for those Phase 1 
vehicles separate from the reports you submit for Phase 2 vehicles with 
model year 2021 engines.
    (o)-(p) [Reserved]
    (q) Vehicle families for advanced and off-cycle technologies. Apply 
the following provisions for grouping vehicles into families if you use 
off-cycle technologies under Sec.  1037.610 or advanced technologies 
under Sec.  1037.615:
    (1) For Phase 1 vehicles, create separate vehicle families for 
vehicles that contain advanced or off-cycle technologies; group those 
vehicles together in a vehicle family if they use the same advanced or 
off-cycle technologies.
    (2) For Phase 2 vehicles, create separate vehicle subfamilies for 
vehicles that contain advanced or off-cycle technologies; group those 
vehicles together in a vehicle subfamily if they use the same advanced 
or off-cycle technologies.
    (r) Conversion to mid-roof and high-roof configurations. Secondary 
vehicle manufacturers that qualify as small manufacturers may convert 
low- and mid-roof tractors to mid- and high-roof configurations without 
recertification for the purpose of building a custom sleeper tractor or 
converting it to run on natural gas, as follows:
    (1) The original low- or mid-roof tractor must be covered by a 
valid certificate of conformity.
    (2) The modifications may not increase the frontal area of the 
tractor beyond the frontal area of the equivalent mid- or high-roof 
tractor with the corresponding standard trailer. Note that these 
dimensions have a tolerance of 2 inches. Use good 
engineering judgment to achieve aerodynamic performance similar to or 
better than the certifying manufacturer's corresponding mid- or high-
roof tractor.
    (3) [Reserved]
    (4) We may require that you submit annual production reports as 
described in Sec.  1037.250.
    (5) Modifications made under this paragraph (r) do not violate 40 
CFR 1068.101(b)(1).
    (s) Confirmatory testing for Falt-aero. If we conduct coastdown 
testing to verify your Falt-aero value for Phase 2 and later 
tractors, we will make our determination using the principles of SEA 
testing in Sec.  1037.305. We will not replace your 
Falt-aero value if the tractor passes. If your tractor 
fails, we will generate a replacement value of Falt-aero 
based on at least one CdA value and corresponding effective 
yaw angle, ceff, from a minimum of 100 valid runs using the 
procedures of Sec.  1037.528(h). Note that we intend to minimize the 
differences between our test conditions and those of the manufacturer 
by testing at similar times of the year where possible and the same 
location where possible and when appropriate.
    (t) Glider kits and glider vehicles. (1) Glider vehicles conforming 
to the requirements in this paragraph (t)(1) are exempt from the Phase 
1 emission standards of this part 1037 prior to January 1, 2021. 
Engines in such vehicles (including vehicles produced after January 1, 
2021) remain subject to the requirements of 40 CFR part 86 applicable 
for the engines' original model year, but not subject to the Phase 1 or 
Phase 2 standards of 40 CFR part 1036 unless they were originally 
manufactured in model year 2014 or later.
    (i) You are eligible for the exemption in this paragraph (t)(1) if 
you are a small manufacturer and you sold one or more glider vehicles 
in 2014 under the provisions of paragraph (c) of this section. You do 
not qualify if you only produced glider vehicles for your own use. You 
must notify us of your plans to use this exemption before you

[[Page 7789]]

introduce exempt vehicles into U.S. commerce. In your notification, you 
must identify your annual U.S.-directed production volume (and sales, 
if different) of such vehicles for calendar years 2010 through 2014. 
Vehicles you produce before notifying us are not exempt under this 
section.
    (ii) In a given calendar year, you may produce up to 300 exempt 
vehicles under this section, or up to the highest annual production 
volume you identify in this paragraph (t)(1), whichever is less.
    (iii) Identify the number of exempt vehicles you produced under 
this exemption for the preceding calendar year in your annual report 
under Sec.  1037.250.
    (iv) Include the appropriate statement on the label required under 
Sec.  1037.135, as follows:
    (A) For Phase 1 vehicles, ``THIS VEHICLE AND ITS ENGINE ARE EXEMPT 
UNDER 40 CFR 1037.150(t)(1).''
    (B) For Phase 2 vehicles, ``THE ENGINE IN THIS VEHICLE IS EXEMPT 
UNDER 40 CFR 1037.150(t)(1).''
    (v) If you produce your glider vehicle by installing remanufactured 
or previously used components in a glider kit produced by another 
manufacturer, you must provide the following to the glider kit 
manufacturer prior to obtaining the glider kit:
    (A) Your name, the name of your company, and contact information.
    (B) A signed statement that you are a qualifying small manufacturer 
and that your production will not exceed the production limits of this 
paragraph (t)(1). This statement is deemed to be a submission to EPA, 
and we may require the glider kit manufacturer to provide a copy to us 
at any time.
    (vi) The exemption in this paragraph (t)(1) is valid for a given 
vehicle and engine only if you meet all the requirements and conditions 
of this paragraph (t)(1) that apply with respect to that vehicle and 
engine. Introducing such a vehicle into U.S. commerce without meeting 
all applicable requirements and conditions violates 40 CFR 
1068.101(a)(1).
    (vii) Companies that are not small manufacturers may sell 
uncertified incomplete vehicles without engines to small manufacturers 
for the purpose of producing exempt vehicles under this paragraph 
(t)(1), subject to the provisions of Sec.  1037.622. However, such 
companies must take reasonable steps to ensure that their incomplete 
vehicles will be used in conformance with the requirements of this 
part.
    (2) Glider vehicles produced using engines certified to model year 
2010 or later standards for all pollutants are subject to the same 
provisions that apply to vehicles using engines within their useful 
life in Sec.  1037.635.
    (3) For calendar year 2017, you may produce a limited number of 
glider kits and/or glider vehicles subject to the requirements 
applicable to model year 2016 glider vehicles, instead of the 
requirements of Sec.  1037.635. The limit applies to your combined 2017 
production of glider kits and glider vehicles and is equal to your 
highest annual production of glider kits and glider vehicles for any 
year from 2010 to 2014. Any glider kits or glider vehicles produced 
beyond this cap are subject to the provisions of Sec.  1037.635. Count 
any glider kits and glider vehicles you produce under paragraph (t)(1) 
of this section as part of your production with respect to this 
paragraph (t)(3).
    (u) Transition to Phase 2 standards. The following provisions allow 
for enhanced generation and use of emission credits from Phase 1 
vehicles for meeting the Phase 2 standards:
    (1) For vocational Light HDV and vocational Medium HDV, credits you 
generate in model years 2018 through 2021 may be used through model 
year 2027, instead of being limited to a five-year credit life as 
specified in Sec.  1037.740(c). For Class 8 vocational vehicles with 
Medium HDE, we will approve your request to generate these credits in 
and use these credits for the Medium HDV averaging set if you show that 
these vehicles would qualify as Medium HDV under the Phase 2 program as 
described in Sec.  1037.140(g)(4).
    (2) You may use the off-cycle provisions of Sec.  1037.610 to apply 
technologies to Phase 1 vehicles as follows:
    (i) You may apply an improvement factor of 0.988 for vehicles with 
automatic tire inflation systems on all axles.
    (ii) For vocational vehicles with automatic engine shutdown systems 
that conform with Sec.  1037.660, you may apply an improvement factor 
of 0.95.
    (iii) For vocational vehicles with stop-start systems that conform 
with Sec.  1037.660, you may apply an improvement factor of 0.92.
    (iv) For vocational vehicles with neutral-idle systems conforming 
with Sec.  1037.660, you may apply an improvement factor of 0.98. You 
may adjust this improvement factor if we approve a partial reduction 
under Sec.  1037.660(a)(2); for example, if your design reduces fuel 
consumption by half as much as shifting to neutral, you may apply an 
improvement factor of 0.99.
    (3) Small manufacturers may generate credits for natural gas-fueled 
vocational vehicles as follows:
    (i) Small manufacturers may certify their vehicles instead of 
relying on the exemption of paragraph (c) of this section. The 
provisions of this part apply for such vehicles, except as specified in 
this paragraph (u)(3).
    (ii) Use GEM version 2.0.1 to determine a fuel consumption level 
for your vehicle, then multiply this value by the engine's Family 
Certification Level for CO2 and divide by the engine's 
applicable fuel consumption standard.
    (4) Phase 1 vocational vehicle credits that small manufacturers 
generate may be used through model year 2027.
    (v) [Reserved]
    (w) Custom-chassis standards for small manufacturers. The following 
provisions apply uniquely to qualifying small manufacturers under the 
custom-chassis standards of Sec.  1037.105(h):
    (1) You may use emission credits generated under Sec.  1037.105(d), 
including banked or traded credits from any averaging set. Such credits 
remain subject to other limitations that apply under subpart H of this 
part.
    (2) You may produce up to 200 drayage tractors in a given model 
year to the standards described in Sec.  1037.105(h) for ``other 
buses''. The limit in this paragraph (w)(2) applies with respect to 
vehicles produced by you and your affiliated companies. Treat these 
drayage tractors as being in their own averaging set.
    (x) Transition to updated GEM. (1) Vehicle manufacturers may 
demonstrate compliance with Phase 2 greenhouse gas standards in model 
years 2021 through 2023 using GEM Phase 2, Version 3.0, Version 3.5.1, 
or Version 4.0 (all incorporated by reference, see Sec.  1037.810). 
Manufacturers may change to a different version of GEM for model years 
2022 and 2023 for a given vehicle family after initially submitting an 
application for certification; such a change must be documented as an 
amendment under Sec.  1037.225. Manufacturers may submit an end-of-year 
report for model year 2021 using any of the three regulatory versions 
of GEM, but only for demonstrating compliance with the custom-chassis 
standards in Sec.  1037.105(h); such a change must be documented in the 
report submitted under Sec.  1037.730. Once a manufacturer certifies a 
vehicle family based on GEM Version 4.0, it may not revert back to 
using GEM Phase 2, Version 3.0 or Version 3.5.1 for that vehicle family 
in any model year.
    (2) Vehicle manufacturers may certify for model years 2021 through 
2023 based on fuel maps from engines or

[[Page 7790]]

powertrains that were created using GEM Phase 2, Version 3.0, Version 
3.5.1, or Version 4.0 (all incorporated by reference, see Sec.  
1037.810). Vehicle manufacturers may alternatively certify in those 
years based on fuel maps from powertrains that were created using GEM 
Phase 2, Version 3.0, GEM HIL model 3.8, or GEM Phase 2, Version 4.0 
(all incorporated by reference, see Sec.  1037.810). Vehicle 
manufacturers may continue to certify vehicles in later model years 
using fuel maps generated with earlier versions of GEM for model year 
2024 and later vehicle families that qualify for using carryover 
provisions in Sec.  1037.235(d).
    (y) [Reserved]
    (z) Constraints for vocational regulatory subcategories. The 
following provisions apply to determinations of vocational regulatory 
subcategories as described in Sec.  1037.140:
    (1) Select the Regional regulatory subcategory for coach buses and 
motor homes.
    (2) You may not select the Urban regulatory subcategory for any 
vehicle with a manual or single-clutch automated manual transmission.
    (3) Starting in model year 2024, you must select the Regional 
regulatory subcategory for any vehicle with a manual transmission.
    (4) You may select the Multi-purpose regulatory subcategory for any 
vocational vehicle, except as specified in paragraph (v)(1) of this 
section.
    (5) You may select the Urban regulatory subcategory for a hybrid 
vehicle equipped with regenerative braking, unless it is equipped with 
a manual transmission.
    (6) You may select the Urban regulatory subcategory for any vehicle 
with a hydrokinetic torque converter paired with an automatic 
transmission, or a continuously variable automatic transmission, or a 
dual-clutch transmission with no more than two consecutive forward 
gears between which it is normal for both clutches to be momentarily 
disengaged.
    (aa) Warranty for components used with battery electric vehicles 
and fuel cell electric vehicles. The emission-related warranty 
requirements in Sec.  1037.120 are optional for fuel cell stacks, RESS, 
and other components used with battery electric vehicles and fuel cell 
electric vehicles before model year 2027.

0
131. Amend Sec.  1037.201 by revising paragraph (i) to read as follows:


Sec.  1037.201  General requirements for obtaining a certificate of 
conformity.

* * * * *
    (i) Vehicles and installed engines must meet exhaust, evaporative, 
and refueling emission standards and certification requirements as 
described in Sec. Sec.  1037.102 and 1037.103, as applicable. Include 
the information described in 40 CFR part 86, subpart S, or 40 CFR 
1036.205 in your application for certification in addition to what we 
specify in Sec.  1037.205 so we can issue a single certificate of 
conformity for all the requirements that apply for your vehicle and the 
installed engine.

0
132. Amend Sec.  1037.205 by:
0
a. Revising paragraph (b) introductory text and (b)(8);
0
b. Removing and reserving paragraphs (c) and (q); and
0
c. Revising paragraph (t).
    The revisions read as follows:


Sec.  1037.205  What must I include in my application?

* * * * *
    (b) Explain how the emission control system operates. As 
applicable, describe in detail all system components for controlling 
emissions, including all auxiliary emission control devices (AECDs) and 
all fuel-system components you will install on any production vehicle. 
For any vehicle using RESS (such as fuel cell electric vehicles and 
battery electric vehicles), describe in detail all components needed to 
charge the system, store energy, and transmit power to move the 
vehicle. Identify the part number of each component you describe. For 
this paragraph (b), treat as separate AECDs any devices that modulate 
or activate differently from each other. Also describe your modeling 
inputs as described in Sec.  1037.520, with the following additional 
information if it applies for your vehicles:
* * * * *
    (8) If you install auxiliary power units in tractors under Sec.  
1037.102(c), identify the family name associated with the engine's 
certification under 40 CFR part 1039. Starting in model year 2024, also 
identify the family name associated with the auxiliary power unit's 
certification to the standards of 40 CFR 1039.699.
* * * * *
    (t) Include the information required by other subparts of this 
part.
* * * * *

0
133. Amend Sec.  1037.230 by revising paragraphs (a) introductory text, 
(b), and (d)(2) introductory text to read as follows:


Sec.  1037.230  Vehicle families, sub-families, and configurations.

    (a) Divide your product line into families of vehicles based on 
regulatory subcategories as specified in this section. Subcategories 
are specified using terms defined in Sec.  1037.801. Your vehicle 
family is limited to a single model year.
* * * * *
    (b) If the vehicles in your family are being certified to more than 
one FEL, subdivide your vehicle families into subfamilies that include 
vehicles with identical FELs. Note that you may add subfamilies at any 
time during the model year.
* * * * *
    (d) * * *
    (2) For a Phase 2 or later vehicle model that includes a range of 
GVWR values that straddle weight classes, you may include all the 
vehicles in the same vehicle family if you certify the vehicle family 
to the numerically lower fuel consumption standard from the affected 
service classes. Vehicles that are optionally certified to a more 
stringent standard under this paragraph (d)(2) are subject to useful-
life and all other provisions corresponding to the weight class with 
the numerically lower fuel consumption standard. For a Phase 2 or later 
tractor model that includes a range of roof heights that straddle 
subcategories, you may include all the vehicles in the same vehicle 
family if you certify the vehicle family to the appropriate subcategory 
as follows:
* * * * *

0
134. Revise Sec.  1037.231 to read as follows:


Sec.  1037.231  Powertrain families.

    See 40 CFR 1036.231 for provisions describing how to divide your 
product line into powertrain families.

0
135. Amend Sec.  1037.235 by revising the introductory text to read as 
follows:


Sec.  1037.235  Testing requirements for certification.

    This section describes the emission testing you must perform to 
show compliance with NHTSA's fuel efficiency program under 49 CFR part 
535, and to determine any input values from Sec.  1037.520 that involve 
measured quantities.
* * * * *

0
136. Revise Sec.  1037.241 to read as follows:


Sec.  1037.241  Demonstrating compliance with fuel consumption 
standards.

    (a) Compliance determinations for purposes of certification depend 
on whether or not you participate in the ABT program in subpart H of 
this part.
    (1) If none of your vehicle families generate or use credits in a 
given model year, each of your vehicle families is

[[Page 7791]]

considered in compliance if all vehicle configurations in the family 
have modeled CO2 emission rates from Sec.  1037.520 that are 
at or below the applicable standards. A vehicle family is deemed not to 
comply if any vehicle configuration in the family has a modeled fuel 
consumption value that is above the applicable standard.
    (2) If you generate or use credits with one or more vehicle 
families in a given model year, your vehicle families within an 
averaging set are considered in compliance if the sum of positive and 
negative credits for all vehicle configurations in those vehicle 
families lead to a zero balance or a positive balance of credits, 
except as allowed by Sec.  1037.745 for NHTSA's fuel efficiency 
program. Note that the FEL is considered to be the applicable emission 
standard for an individual configuration.
    (b) We may require you to provide an engineering analysis showing 
that the performance of your controls will not deteriorate during the 
useful life with proper maintenance. If we determine that your controls 
are likely to deteriorate during the useful life, we may require you to 
develop and apply deterioration factors consistent with good 
engineering judgment. Where the highest useful life fuel consumption 
occurs between the end of useful life and at the low-hour test point, 
base deterioration factors for the vehicles on the difference between 
(or ratio of) the point at which the highest fuel consumption occurs 
and the low-hour test point.

0
137. Amend Sec.  1037.501 by revising the introductory text and 
paragraphs (a), (b), (d)(2), and (f) to read as follows:


Sec.  1037.501  General testing and modeling provisions.

    This subpart specifies how to perform testing and modeling required 
elsewhere in this part for demonstrating compliance with fuel 
consumption standards under 49 CFR part 535.
    (a) Except as specified in subpart B of this part, you must 
demonstrate that you meet the applicable standards using modeling as 
described in Sec.  1037.520. This modeling depends on several measured 
values as described in this subpart. You may use fuel-mapping 
information from the engine manufacturer as described in 40 CFR 
1036.535 and 1036.540, or you may use powertrain testing as described 
in 40 CFR 1036.545.
    (b) Where testing is required, use equipment and procedures as 
described in 40 CFR part 1065 and part 1066. Measure CO2 
emissions as specified in 40 CFR part 1065 and part 1066. Use the 
applicable duty cycles specified in Sec.  1037.510.
* * * * *
    (d) * * *
    (2) For diesel-fueled vehicles, use the appropriate diesel fuel 
specified for emission testing. Unless specified otherwise, the 
appropriate diesel test fuel is ultra-low sulfur diesel fuel.
* * * * *
    (f) This subpart is addressed to you as a manufacturer, but it 
applies equally to anyone who does testing for you, and to us when we 
perform testing to determine if your vehicles meet the standards.
* * * * *

0
138. Amend Sec.  1037.520 by revising the section heading and 
introductory text to read as follows:


Sec.  1037.520  Modeling CO2 emissions to show that vehicles comply 
with fuel consumption standards.

    This section describes how to use the Greenhouse gas Emissions 
Model (GEM) to show compliance with NHTSA's fuel consumption standards 
under 49 CFR part 535. Use GEM version 2.0.1 to demonstrate compliance 
with Phase 1 standards; use GEM Phase 2, Version 4.0 to demonstrate 
compliance with Phase 2 standards (both incorporated by reference, see 
Sec.  1037.810). Use good engineering judgment when demonstrating 
compliance using GEM.
* * * * *

0
139. Amend Sec.  1037.540 by revising the introductory text and 
paragraph (a)(1) to read as follows:


Sec.  1037.540  Special procedures for testing vehicles with hybrid 
power take-off.

    This section describes optional procedures for quantifying the 
reduction in fuel consumption for vehicles as a result of running power 
take-off (PTO) devices with a hybrid energy delivery system. See 40 CFR 
1036.545 for powertrain testing requirements that apply for drivetrain 
hybrid systems. The procedures are written to test the PTO by ensuring 
that the engine produces all of the energy with no net change in stored 
energy (charge-sustaining), and for plug-in hybrid electric vehicles, 
also allowing for drawing down the stored energy (charge-depleting). 
The full charge-sustaining test for the hybrid vehicle is from a fully 
charged rechargeable energy storage system (RESS) to a depleted RESS 
and then back to a fully charged RESS. You must include all hardware 
for the PTO system. You may ask us to modify the provisions of this 
section to allow testing hybrid vehicles that use a technology other 
than batteries for storing energy, consistent with good engineering 
judgment. For plug-in hybrid electric vehicles, use a utility factor to 
properly weight charge-sustaining and charge-depleting operation as 
described in paragraph (f)(3) of this section.
    (a) * * *
    (1) Select a vehicle with a hybrid energy delivery system to 
represent the range of PTO configurations that will be covered by the 
test data. If your test data will represent more than one PTO 
configuration, use good engineering judgment to select the 
configuration with the maximum number of PTO circuits that has the 
smallest potential reduction in fuel consumption.
* * * * *

0
140. Add Sec.  1037.550 to subpart F to read as follows:


Sec.  1037.550  Powertrain testing.

    See 40 CFR 1036.545 for the powertrain test procedure.

0
141. Amend Sec.  1037.551 by revising paragraph (a) to read as follows:


Sec.  1037.551  Engine-based simulation of powertrain testing.

* * * * *
    (a) Use the procedures of 40 CFR part 1065 to set up the engine, 
measure emissions, and record data. Measure individual parameters and 
emission constituents as described in this section. For hybrid 
powertrains, correct for the net energy change of the energy storage 
device as described in 40 CFR 1066.501(a)(3).
* * * * *

0
142. Amend Sec.  1037.555 by revising paragraph (c) to read as follows:


Sec.  1037.555  Special procedures for testing Phase 1 hybrid systems.

* * * * *
    (c) Collect and measure emissions as described in 40 CFR part 1066. 
Calculate emission rates in grams per ton-mile without rounding. 
Determine values for A, B, C, and M for the vehicle being simulated as 
specified in 40 CFR part 1066. If you will apply an improvement factor 
or test results to multiple vehicle configurations, use values of A, B, 
C, M, ka, and r that represent the vehicle configuration 
with the smallest potential reduction in greenhouse gas emissions as a 
result of the hybrid capability.
* * * * *

0
143. Amend Sec.  1037.560 by revising paragraph (b)(4) to read as 
follows:


Sec.  1037.560  Axle efficiency test.

* * * * *
    (b) * * *

[[Page 7792]]

    (4) Add gear oil according to the axle manufacturer's instructions. 
If the axle manufacturer specifies multiple gear oils, select the one 
with the highest viscosity at operating temperature. You may use a 
lower-viscosity gear oil if we approve it. Fill the gear oil to a level 
that represents in-use operation. You may use an external gear oil 
conditioning system, as long as it does not affect measured values.
* * * * *

0
144. Amend Sec.  1037.565 by revising paragraph (b)(3) to read as 
follows:


Sec.  1037.565  Transmission efficiency test.

* * * * *
    (b) * * *
    (3) Add transmission oil according to the transmission 
manufacturer's instructions. If the transmission manufacturer specifies 
multiple transmission oils, select the one with the highest viscosity 
at operating temperature. You may use a lower-viscosity transmission 
oil if we approve it. Fill the transmission oil to a level that 
represents in-use operation. You may use an external transmission oil 
conditioning system, as long as it does not affect measured values.
* * * * *

0
145. Amend Sec.  1037.570 by revising paragraph (a)(4)(i) to read as 
follows:


Sec.  1037.570  Procedures to characterize torque converters.

* * * * *
    (a) * * *
    (4) * * *
    (i) If the torque converter manufacturer specifies multiple 
transmission oils, select the one with the highest viscosity at 
operating temperature. You may use a lower-viscosity transmission oil 
if we approve it.
* * * * *

0
146. Amend Sec.  1037.605 by revising paragraph (d) to read as follows:


Sec.  1037.605  Installing engines certified to alternate standards for 
specialty vehicles.

* * * * *
    (d) Vehicle standards. The Vehicle standards apply as follows for 
these vehicles:
    (1) Vehicles qualifying under this section are subject to 
evaporative emission standards as specified in Sec.  1037.103, but are 
exempt from the other requirements of this part, except as specified in 
this section and in Sec.  1037.601.
    (2) Hybrid vehicles may need to use GEM in conjunction with 
powertrain testing to demonstrate compliance with fuel consumption 
standards.

0
147. Amend Sec.  1037.610 by revising paragraphs (a) and (d)(1) to read 
as follows:


Sec.  1037.610  Vehicles with off-cycle technologies.

    (a) You may ask us to apply the provisions of this section for fuel 
consumption reductions resulting from vehicle technologies that were 
not in common use with heavy-duty vehicles before model year 2010 that 
are not reflected in GEM. While you are not required to prove that such 
technologies were not in common use with heavy-duty vehicles before 
model year 2010, we will not approve your request if we determine that 
they do not qualify. These may be described as off-cycle or innovative 
technologies. You may apply these provisions for fuel consumption 
reductions reflected in the specified test procedures if they are not 
reflected in GEM, except as allowed under paragraph (g) of this 
section. We will apply these provisions only for technologies that will 
result in measurable, demonstrable, and verifiable real-world fuel 
consumption reductions.
* * * * *
    (d) * * *
    (1) A detailed description of the off-cycle technology and how it 
functions to reduce fuel consumption under conditions not represented 
on the duty cycles required for certification.
* * * * *

0
148. Amend Sec.  1037.615 by:
0
a. Revising paragraphs (a), (b)(4), and (d);
0
b. Removing and reserving paragraph (f); and
0
c. Revising paragraph (g).
    The revisions read as follows:


Sec.  1037.615  Advanced technologies.

    (a) This section describes how to calculate emission credits for 
advanced technologies. You may calculate Phase 1 advanced technology 
credits through model year 2020 for hybrid vehicles with regenerative 
braking, vehicles equipped with Rankine-cycle engines, battery electric 
vehicles, and fuel cell electric vehicles. You may calculate Phase 2 
advanced technology credits through model year 2026 for plug-in hybrid 
electric vehicles, battery electric vehicles, and fuel cell electric 
vehicles. You may not generate credits for Phase 1 engine technologies 
for which the engines generate CO2 credits under 40 CFR part 
1036.
    (b) * * *
* * * * *
    (d) For Phase 2 plug-in hybrid electric vehicles and for fuel cells 
powered by any fuel other than hydrogen, calculate credits using an FEL 
based on measurements from powertrain testing. Phase 2 advanced 
technology credits do not apply for hybrid vehicles that have no plug-
in capability.
* * * * *
    (g) As specified in subpart H of this part, advanced-technology 
credits generated from Phase 1 vehicles under this section may be used 
under this part outside of the averaging set in which they were 
generated. Advanced-technology credits generated from Phase 2 and later 
vehicles are subject to the averaging-set restrictions that apply to 
other credits.
    (h) You may certify using both provisions of this section and the 
off-cycle technology provisions of Sec.  1037.610, provided you do not 
double count benefits.

0
149. Amend Sec.  1037.620 by revising paragraphs (a)(2) and (e) to read 
as follows:


Sec.  1037.620  Responsibilities for multiple manufacturers.

* * * * *
    (a) * * *
    (2) We will apply the requirements of subparts C and D of this part 
to the manufacturer that certifies the vehicle. Other manufacturers are 
required to comply with the requirements of subparts C and D of this 
part only when notified by us. In our notification, we will specify a 
reasonable time period in which you need to comply with the 
requirements identified in the notice. See Sec.  1037.601 for the 
applicability of 40 CFR part 1068 to these other manufacturers and 
remanufacturers.
* * * * *
    (e) We may require component manufacturers to provide information 
or take other actions. For example, we may require component 
manufacturers to test components they produce.

0
150. Amend Sec.  1037.622 by:
0
a. Revising the introductory text and paragraph (a)(2); and
0
b. Removing and reserving paragraph (d)(5).
    The revisions read as follows:


Sec.  1037.622  Shipment of partially complete vehicles to secondary 
vehicle manufacturers.

    This section specifies how manufacturers may introduce partially 
complete vehicles into U.S. commerce (or in the case of certain custom 
vehicles, introduce complete vehicles into U.S. commerce for 
modification by a small manufacturer). The provisions of this section 
are intended to accommodate normal business practices without 
compromising the effectiveness

[[Page 7793]]

of certified emission controls. You may not use the provisions of this 
section to circumvent the intent of this part.
    (a) * * *
    (2) Uncertified vehicles that will be certified by secondary 
vehicle manufacturers. Manufacturers may introduce into U.S. commerce 
partially complete vehicles for which they do not hold the required 
certificate of conformity only as allowed by paragraph (b) of this 
section; however, the requirements of this section do not apply for 
tractors or vocational vehicles with a date of manufacture before 
January 1, 2022, that are produced by a secondary vehicle manufacturer 
if they are excluded under Sec.  1037.5.
* * * * *

0
151. Amend Sec.  1037.631 by revising the introductory text and 
paragraph (a) introductory text to read as follows:


Sec.  1037.631  Exemption for vocational vehicles intended for off-road 
use.

    This section provides an exemption from the fuel consumption 
standards under 49 CFR part 535 for certain vocational vehicles 
(including certain vocational tractors) that are intended to be used 
extensively in off-road environments such as forests, oil fields, and 
construction sites. This section does not exempt engines used in 
vocational vehicles from the standards of 40 CFR part 86 or part 1036. 
Note that you may not include these exempted vehicles in any credit 
calculations.
    (a) Qualifying criteria. Vocational vehicles intended for off-road 
use are exempt without request, subject to the provisions of this 
section, if they are primarily designed to perform work off-road (such 
as in oil fields, mining, forests, or construction sites), and they 
meet at least one of the criteria of paragraph (a)(1) of this section 
and at least one of the criteria of paragraph (a)(2) of this section. 
See Sec.  1037.105(h) for alternate Phase 2 standards that apply for 
vehicles meeting only one of these sets of criteria.
* * * * *

0
152. Amend Sec.  1037.635 by:
0
a. Revising paragraphs (a) and (b) introductory text; and
0
b. Removing and reserving paragraph (b)(1).
    The revisions read as follows:


Sec.  1037.635  Glider kits and glider vehicles.

* * * * *
    (a) Vehicles produced from glider kits and other glider vehicles 
are subject to the same standards as other new vehicles. Note that this 
requirement for the vehicle generally applies even if the engine meets 
the criteria of paragraph (c)(1) of this section. For engines 
originally produced before 2017, if you are unable to obtain a fuel map 
for an engine you may ask to use a default map, consistent with good 
engineering judgment.
    (b) Section 1037.601(a)(1) disallows the introduction into U.S. 
commerce of a new vehicle (including a vehicle assembled from a glider 
kit) unless it has an engine that is certified to the applicable 
standards in 40 CFR parts 86 and 1036. Except as specified otherwise in 
this part, the standards apply for engines used in glider vehicles as 
follows:
* * * * *


Sec.  1037.645  [Removed]

0
153. Remove Sec.  1037.645.

0
154. Amend Sec.  1037.655 by revising paragraph (a) to read as follows:


Sec.  1037.655  Post-useful life vehicle modifications.

    (a) General. This section specifies vehicle modifications that may 
occur in certain circumstances after a vehicle reaches the end of its 
regulatory useful life. We may require a higher burden of proof with 
respect to modifications that occur within the useful life period, and 
the specific examples presented here do not necessarily apply within 
the useful life. This section also does not apply with respect to 
engine modifications or recalibrations.
* * * * *


Sec. Sec.  1037.665  and 1037.670 [Removed]

0
155. Remove Sec. Sec.  1037.665 and 1037.670.

0
156. Revise Sec.  1037.701 to read as follows:


Sec.  1037.701  General provisions.

    (a) You may average, bank, and trade credits as described in 49 CFR 
part 535. Participation in this program is voluntary.
    (b) The definitions of subpart I of this part apply to this subpart 
in addition to the following definitions:
    (1) Actual credits means credits you have generated that we have 
verified by reviewing your final report.
    (2) Averaging set means a set of vehicles in which credits may be 
exchanged. Note that an averaging set may comprise more than one 
regulatory subcategory. See Sec.  1037.740.
    (3) Broker means any entity that facilitates a trade of credits 
between a buyer and seller.
    (4) Buyer means the entity that receives credits as a result of a 
trade.
    (5) Reserved credits means credits you have generated that we have 
not yet verified by reviewing your final report.
    (6) Seller means the entity that provides credits during a trade.
    (7) Standard means the standard that applies under subpart B of 
this part for vehicles not participating in the ABT program of this 
subpart.
    (8) Trade means to exchange credits, either as a buyer or seller.
    (c) Credits may be exchanged only within an averaging set, except 
as specified in Sec.  1037.740.
    (d) You may not use credits generated under this subpart to offset 
any emissions that exceed an FEL or standard.
    (e) You may use either of the following approaches to retire or 
forego credits:
    (1) You may trade credits generated from any number of your 
vehicles to the vehicle purchasers or other parties to retire the 
credits. Identify any such credits in the reports described in Sec.  
1037.730. Vehicles must comply with the applicable FELs even if you 
donate or sell the corresponding credits under this paragraph (e). 
Those credits may no longer be used by anyone to demonstrate compliance 
with any standards.
    (2) You may certify a family using an FEL below the standard as 
described in this part and choose not to generate credits for that 
family. If you do this, you do not need to calculate credits for those 
families and you do not need to submit or keep the associated records 
described in this subpart for that family.
    (f) Credits may be used in the model year they are generated. Where 
allowed, surplus credits may be banked for future model years. Surplus 
credits may sometimes be used for past model years, as described in 
Sec.  1037.745. You may not apply banked or traded credits in a given 
model year until you have used all available credits through averaging 
to resolve credit balances for that model year.
    (g) You may increase or decrease an FEL during the model year by 
amending your application for certification under Sec.  1037.225. The 
new FEL may apply only to vehicles you have not already introduced into 
commerce.


Sec. Sec.  1037.705,1037.710, 1037.715, and 1037.720  [Removed]

0
157. Remove Sec. Sec.  1037.705, 1037.710, 1037.715, and 1037.720.

0
158. Revise Sec.  1037.725 to read as follows:


Sec.  1037.725  Required information for certification.

    (a) You must declare your intent to use the provisions of this 
subpart for each vehicle family that will be certified using the ABT 
program before

[[Page 7794]]

production. You must also declare the FELs you select for the vehicle 
family or subfamily for each pollutant for which you are using the ABT 
program. Your FELs must comply with the specifications of subpart B of 
this part. FELs must be expressed to the same number of decimal places 
as the applicable standards.
    (b) Your declaration must include the following information:
    (1) A statement that, to the best of your belief, you will not have 
a negative balance of credits for any averaging set when all credits 
are calculated at the end of the year; or a statement that you will 
have a negative balance of credits for one or more averaging sets but 
that it is allowed under Sec.  1037.745 for NHTSA's fuel efficiency 
program.
    (2) Calculations of projected credits (positive or negative) based 
on projected U.S.-directed production volumes. We may require you to 
include similar calculations from your other vehicle families to 
project your net credit balances for the model year. If you project 
negative credits for a family or subfamily, state the source of 
positive credits you expect to use to offset the negative credits.

0
159. Revise and republish Sec.  1037.730 to read as follows:


Sec.  1037.730  ABT reports.

    (a) If you certify any vehicle families using the ABT provisions of 
this subpart, send us a final report by September 30 following the end 
of the model year.
    (b) Your report must include the following information for each 
vehicle family participating in the ABT program:
    (1) Vehicle-family and subfamily designations, and averaging set.
    (2) The regulatory subcategory and standards that would otherwise 
apply to the vehicle family.
    (3) The FEL. If you change the FEL after the start of production, 
identify the date that you started using the new FEL and/or give the 
vehicle identification number for the first vehicle covered by the new 
FEL. In this case, identify each applicable FEL and calculate the 
positive or negative credits as specified in Sec.  1037.225.
    (4) The projected and actual production volumes for the model year 
for calculating credits. If you changed an FEL during the model year, 
identify the actual production volume associated with each FEL.
    (5) Useful life.
    (6) Calculated positive or negative credits for the whole vehicle 
family. Identify any credits that you traded, as described in paragraph 
(d)(1) of this section.
    (7) If you have a negative credit balance for the averaging set in 
the given model year, specify whether the vehicle family (or certain 
subfamilies with the vehicle family) have a credit deficit for the 
year. Consider for example, a manufacturer with three vehicle families 
(``A'', ``B'', and ``C'') in a given averaging set. If family A 
generates enough credits to offset the negative credits of family B but 
not enough to also offset the negative credits of family C (and the 
manufacturer has no banked credits in the averaging set), the 
manufacturer may designate families A and B as having no deficit for 
the model year, provided it designates family C as having a deficit for 
the model year.
    (c) Your report must include the following additional information:
    (1) Show that your net balance of credits from all your 
participating vehicle families in each averaging set in the applicable 
model year is not negative, except as allowed under Sec.  1037.745 for 
NHTSA's fuel efficiency program. Your credit tracking must account for 
the limitation on credit life under Sec.  1037.740(c).
    (2) State whether you will retain any credits for banking. If you 
choose to retire credits that would otherwise be eligible for banking, 
identify the families that generated the credits, including the number 
of credits from each family.
    (3) State that the report's contents are accurate.
    (4) Identify the technologies that make up the certified 
configuration associated with each vehicle identification number. You 
may identify this as a range of identification numbers for vehicles 
involving a single, identical certified configuration.
    (d) If you trade credits, you must send us a report within 90 days 
after the transaction, as follows:
    (1) As the seller, you must include the following information in 
your report:
    (i) The corporate names of the buyer and any brokers.
    (ii) A copy of any contracts related to the trade.
    (iii) The averaging set corresponding to the vehicle families that 
generated credits for the trade, including the number of credits from 
each averaging set.
    (2) As the buyer, you must include the following information in 
your report:
    (i) The corporate names of the seller and any brokers.
    (ii) A copy of any contracts related to the trade.
    (iii) How you intend to use the credits, including the number of 
credits you intend to apply for each averaging set.
    (e) Send your reports electronically to the Designated Compliance 
Officer using an approved information format. If you want to use a 
different format, send us a written request with justification for a 
waiver.
    (f) Correct errors in your report as follows:
    (1) If you notify us by the deadline for submitting the final 
report that errors mistakenly decreased your balance of credits, you 
may correct the errors and recalculate the balance of credits. If you 
notify us that errors mistakenly decreased your balance of credits 
after the deadline for submitting the final report, you may correct the 
errors and recalculate the balance of credits after applying a 10 
percent discount to the credit correction, but only if you notify us 
within 24 months after the deadline for submitting the final report. If 
you report a negative balance of credits, we may disallow corrections 
under this paragraph (f)(1).
    (2) If you or we determine any time that errors mistakenly 
increased your balance of credits, you must correct the errors and 
recalculate the balance of credits.

0
160. Amend Sec.  1037.735 by revising paragraphs (b) and (e) to read as 
follows:


Sec.  1037.735  Recordkeeping.

* * * * *
    (b) Keep the records required by this section for at least eight 
years after the due date for the final report. You may not use credits 
for any vehicles if you do not keep all the records required under this 
section. You must therefore keep these records to continue to bank 
valid credits.
* * * * *
    (e) We may require you to keep additional records or to send us 
relevant information not required by this section.

0
161. Revise Sec.  1037.740 to read as follows:


Sec.  1037.740  Restrictions for using credits.

    The following restrictions apply for using credits.
    (a) Averaging sets. Credits may be exchanged only within an 
averaging set. The following principal averaging sets apply for 
vehicles certified to the standards of this part involving credits as 
described in this subpart:
    (1) Light HDV.
    (2) Medium HDV.
    (3) Heavy HDV.
    (4) Note that other separate averaging sets also apply for credits 
not related to

[[Page 7795]]

this part. Separate averaging sets also apply for engines under 40 CFR 
part 1036, including engines used in vehicles subject to this subpart.
    (b) [Reserved]
    (c) Credit life. Banked credits may be used only for five model 
years after the year in which they are generated.
    (d) Other restrictions. Other sections of this part specify 
additional restrictions for using credits under certain special 
provisions.

0
162. Revise Sec.  1037.745 to read as follows:


Sec.  1037.745  End-of-year credit deficits.

    See 49 CFR 535.7 for provisions related to credit deficits for 
NHTSA's fuel consumption credits.


Sec.  1037.750  [Removed]

0
163. Remove Sec.  1037.750.

0
164. Amend Sec.  1037.801 by:
0
a. Revising the definitions of ``Model year'', ``Phase 1'', and ``Phase 
2'';
0
b. Removing the definitions of ``Phase 3'' and ``State of certified 
energy (SOCE)'';
0
c. Revising the definition of ``Tractor'';
0
d. Removing the definition of ``Usable battery energy (UBE)''; and
0
e. Revising the definitions of ``Vocational vehicle'' and ``We (us, 
our)''.
    The revisions read as follows:


Sec.  1037.801  Definitions.

* * * * *
    Model year means one of the following for compliance with this 
part. Note that manufacturers may have other model year designations 
for the same vehicle for compliance with other requirements or for 
other purposes:
    (1) For vehicles with a date of manufacture on or after January 1, 
2021, model year means the manufacturer's annual new model production 
period based on the vehicle's date of manufacture, where the model year 
is the calendar year corresponding to the date of manufacture, except 
as follows:
    (i) The vehicle's model year may be designated as the year before 
the calendar year corresponding to the date of manufacture if the 
engine's model year is also from an earlier year. You may ask us to 
extend your prior model year certificate to include such vehicles. Note 
that Sec.  1037.601(a)(2) limits the extent to which vehicle 
manufacturers may install engines built in earlier calendar years.
    (ii) The vehicle's model year may be designated as the year after 
the calendar year corresponding to the vehicle's date of manufacture. 
For example, a manufacturer may produce a new vehicle by installing the 
engine in December 2023 and designating it as a model year 2024 
vehicle.
    (2) For vehicles with a date of manufacture before January 1, 2021, 
model year means the manufacturer's annual new model production period, 
except as restricted under this definition and 40 CFR part 85, subpart 
X. It must include January 1 of the calendar year for which the model 
year is named, may not begin before January 2 of the previous calendar 
year, and it must end by December 31 of the named calendar year. The 
model year may be set to match the calendar year corresponding to the 
date of manufacture.
    (i) The manufacturer who holds the certificate of conformity for 
the vehicle must assign the model year based on the date when its 
manufacturing operations are completed relative to its annual model 
year period. In unusual circumstances where completion of your assembly 
is delayed, we may allow you to assign a model year one year earlier, 
provided it does not affect which regulatory requirements will apply.
    (ii) Unless a vehicle is being shipped to a secondary vehicle 
manufacturer that will hold the certificate of conformity, the model 
year must be assigned prior to introduction of the vehicle into U.S. 
commerce. The certifying manufacturer must redesignate the model year 
if it does not complete its manufacturing operations within the 
originally identified model year. A vehicle introduced into U.S. 
commerce without a model year is deemed to have a model year equal to 
the calendar year of its introduction into U.S. commerce unless the 
certifying manufacturer assigns a later date.
* * * * *
    Phase 1 means relating to the Phase 1 fuel consumption standards.
    Phase 2 means relating to the Phase 2 fuel consumption standards.
* * * * *
    Tractor means a truck designed primarily for drawing other motor 
vehicles and not so constructed as to carry a load other than a part of 
the weight of the vehicle and the load so drawn. This includes most 
heavy-duty vehicles specifically designed for the primary purpose of 
pulling trailers, but does not include vehicles designed to carry other 
loads. For purposes of this definition ``other loads'' would not 
include loads carried in the cab, sleeper compartment, or toolboxes. 
Examples of vehicles that are similar to tractors but that are not 
tractors under this part include dromedary tractors, automobile 
haulers, straight trucks with trailers hitches, and tow trucks. Note 
that the provisions of this part that apply for tractors do not apply 
for tractors that are classified as vocational tractors under Sec.  
1037.630.
* * * * *
    Vocational vehicle means a heavy-duty vehicle at or below 26,000 
pounds GVWR that is not subject to standards under 40 CFR part 86, 
subpart S, or a heavy-duty vehicle above 26,000 pounds GVWR that is not 
a tractor.
* * * * *
    We (us, our) means the Administrator of the Environmental 
Protection Agency and any authorized representatives for issues related 
to criteria pollutant standards. In the case of testing, compliance, 
and approvals related to fuel consumption standards, ``we (us, our)'' 
includes the Administrator of the National Highway Traffic Safety 
Administration (NHTSA) and any authorized representatives.


Sec.  1037.805  [Amended]

0
165. Amend Sec.  1037.805 by removing ``CH4'' and 
``N2O'' from table 1 to paragraph (a).

0
166. Amend Sec.  1037.810 by revising paragraphs (c)(3) and (6) to read 
as follows:


Sec.  1037.810  Incorporation by reference.

* * * * *
    (c) * * *
    (3) SAE J1263 MAR2010, Road Load Measurement and Dynamometer 
Simulation Using Coastdown Techniques, Revised March 2010, (``SAE 
J1263''); IBR approved for Sec.  1037.528 introductory text, (a), (b), 
(c), (e), and (h).
* * * * *
    (6) SAE J2263 MAY2020, (R) Road Load Measurement Using Onboard 
Anemometry and Coastdown Techniques, Revised May 2020, (``SAE J2263''); 
IBR approved for Sec.  1037.528 introductory text, (a), (b), (d), and 
(f).
* * * * *

PART 1039--CONTROL OF EMISSIONS FROM NEW AND IN-USE NONROAD 
COMPRESSION-IGNITION ENGINES

0
167. The authority citation for part 1039 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.


0
168. Amend Sec.  1039.699 by revising paragraphs (a) and (n) to read as 
follows:


Sec.  1039.699  Emission standards and certification requirements for 
auxiliary power units for highway tractors.

    (a) This section describes emission standards and certification 
requirements for auxiliary power units (APU) installed on highway 
tractors subject to

[[Page 7796]]

standards under 40 CFR 1037.102 starting in model year 2024.
* * * * *
    (n) If a highway tractor manufacturer violates 40 CFR 1037.102 by 
installing an APU from you that is not properly certified and labeled, 
you are presumed to have caused the violation (see 40 CFR 1068.101(c)).

[FR Doc. 2026-03157 Filed 2-17-26; 8:45 am]
BILLING CODE 6560-50-P