NHTSA And EPA Finalize The Safer Affordable Fuel-Efficient Vehicles Rule

On March 30, 2020, the National Highway Traffic Safety Administration ("NHTSA") and Environmental Protection Agency ("EPA") finalized the Safer Affordable Fuel-Efficient ("SAFE") Vehicles Rule (the "Rule"). Under the Rule, EPA amends carbon dioxide ("CO2") standards for passenger cars and light trucks for model years ("MYs") 2021 and later, while NHTSA amends corporate average fuel economy ("CAFE") standards for MY 2021 and sets new CAFE standards for MYs 2022-2026.

The first part of the Rule, finalized on September 19, 2019, and entitled the One National Program Rule, asserts that the Energy Policy and Conservation Act ("EPCA") gives the United States Department of Transportation the right to set national fuel economy standards and preempts similar state programs. The second part of the Rule, issued on March 30, 2020, finalizes the regulatory text related to preemption under EPCA and withdraws a waiver previously provided to California under the Clean Air Act