Executive Order 14037 · Signed Aug 5, 2021

86 FR 43583 · Published Aug 10, 2021 · Effective on signing

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Strengthening American Leadership in Clean Cars and Trucks

clean vehiclesemissions standardsfuel economyclimate policyautomotive industry

Signed by President Joseph R. Biden Jr.

The order sets a national goal of 50 percent zero-emission vehicle sales for new passenger cars and light trucks by 2030, and directs the EPA and Department of Transportation to begin rulemaking on tighter emissions and fuel economy standards across light-, medium-, and heavy-duty vehicles.

Establishes coordinated federal and state engagement — including with California — and requires consultation with labor, industry, and environmental-justice groups, though all actual regulatory changes depend on future rulemakings the agencies are directed to initiate, not on the order itself.

What this order does

What it orders

The order directs the EPA Administrator to consider initiating rulemakings under the Clean Air Act to establish new multi-pollutant and greenhouse gas emissions standards for light- and medium-duty vehicles (model years 2027–2030), new nitrogen oxide standards for heavy-duty engines (model years 2027–2030), and new greenhouse gas standards for heavy-duty vehicles starting as early as model year 2030. It directs the Secretary of Transportation to consider initiating rulemakings under the Energy Independence and Security Act to set new fuel economy standards for passenger cars, light trucks, and heavy-duty pickups and vans, also beginning with model year 2027 or 2028. The order provides target timelines for proposed and final rules and requires EPA and DOT to coordinate with each other and consult with the Departments of Commerce, Labor, and Energy, the State of California, other leading-emissions states, and diverse stakeholders including labor unions and environmental-justice organizations.

The order does not itself impose any new emissions standard, fuel economy requirement, or sales mandate. Every operative change described hinges on future agency rulemaking, which must comply with applicable law and available appropriations. The 50-percent zero-emission vehicle figure is stated as a goal in the policy section, not as a binding requirement created by this order.

Who it affects

Federal agencies — chiefly EPA and the Department of Transportation — that must initiate new rulemakings. Automakers and their suppliers, labor unions in the automotive sector, state environmental regulators (especially California), and ultimately consumers who buy new vehicles when future standards take effect.

Why it matters

Automakers and suppliers face the prospect of significantly tighter emissions and fuel economy standards across nearly every vehicle class starting in model year 2027, which shapes product investment decisions now. Consumers will ultimately see a different mix of available vehicles and fuel costs if the rulemakings proceed as targeted.

What must happen and when

How the order is supposed to work

EPA and DOT work in parallel, each pursuing separate rulemakings under their respective statutes — the Clean Air Act for emissions, EISA for fuel economy. The order sets non-binding target dates: EPA should aim to publish a proposed rule on heavy-duty NOx standards by January 2022 and a final rule by December 2022; all other final rules are targeted by July 2024. Coordination with California and stakeholder consultation are required steps before final rules issue. There are no enforcement consequences specified for missing the target dates.

Actions and deadlines

  • EPA to consider issuing a notice of proposed rulemaking on heavy-duty NOx standards for model year 2027 and laterBy January 2022
  • EPA to consider issuing a final rule on heavy-duty NOx standards for model year 2027 and laterBy December 2022
  • EPA and DOT to consider issuing final rules on light-, medium-, and certain heavy-duty vehicle emissions and fuel economy standards (sections 2 and 4)By July 2024
  • EPA to coordinate rulemaking activities with California and other leading-emissions statesNo deadline specified
  • EPA and DOT to consult with Departments of Commerce, Labor, and Energy on automotive innovation, supply chain, and jobs goalsNo deadline specified
  • EPA and DOT to seek input from stakeholders including labor unions, states, industry, environmental-justice organizations, and public health expertsNo deadline specified

Agencies directed to act

Environmental Protection AgencyDepartment of TransportationDepartment of CommerceDepartment of LaborDepartment of Energy

Authority and reach

Authorities cited

Article II

Constitutional grant of executive power to the President.

Clean Air Act

Federal law authorizing EPA to set national air-quality and vehicle-emissions standards.

Energy Independence and Security Act of 2007

Federal law authorizing the Department of Transportation to set fuel economy standards for vehicles.

Executive Order

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Executive Order 14037: Strengthening American Leadership in Clean Cars and Trucks | EO Reporter