H.R. 2814 — Transportation Freedom Act

This section defines terms used in this subtitle, including (1) Administrator as the Administrator of the Environmental Protection Agency; (2) CAFE standards as the Corporate Average Fuel Economy standards required under 49 U.S.C. 32902(a); (3) greenhouse gas emissions as emissions of carbon dioxide, methane, nitrous oxide, and other gases that contribute to climate change; and (4) Secretary as the Secretary of Transportation.

This section directs the Secretary of Transportation, in consultation with the Secretary of Energy and EPA Administrator, to establish Corporate Average Fuel Economy (CAFE) standards for passenger automobiles and light-duty trucks for model years 2027 through 2035 not later than 180 days after enactment of this Act. It also directs the EPA Administrator, notwithstanding any other provision of law, to establish greenhouse gas emissions standards for new motor vehicles and new motor vehicle engines under Clean Air Act section 202 (42 U.S.C. 7521) for those model years within the same timeframe. Both sets of standards must (1) be based on economic practicability and reflect achievable technological advancements considering market readiness, affordability, industry capacity, historical data, and independent expert assessments of feasibility and economic impacts including motor vehicle manufacturing job quality and stability; (2) for CAFE standards, exclude consideration of dedicated automobiles' fuel economy in any baseline fleet or scenario; and (3) for greenhouse gas standards, be technologically feasible and economically practicable for vehicles of any weight class or category when operated on reformulated gasoline compliant with Clean Air Act section 211(o) (42 U.S.C. 7545(o)) and not require, directly or indirectly, production or sale of electric vehicles. In establishing the standards, the Secretary and Administrator must consult with manufacturers, energy producers, consumer groups, and other stakeholders after providing adequate notice and consider their feedback to ensure technological and economic achievability. The Secretary and Administrator must submit biennial reports to Congress detailing progress toward the 2035 standards and, based on those reports including market conditions, technological advancements, and economic impacts, may adjust the standards. If the standards are not established by the specified deadlines, model year 2025 standards continue in effect through model year 2035.

This section establishes reciprocal deemed compliance between Corporate Average Fuel Economy (CAFE) standards administered by the Department of Transportation and greenhouse gas (GHG) fleet-average emissions standards—including carbon dioxide—administered by the Environmental Protection Agency (EPA) under Clean Air Act section 202. (1) A manufacturer's compliance with CAFE standards for passenger automobiles, non-passenger automobiles, and work trucks—including through civil penalties or credits—deems compliance with applicable CAA GHG standards for those vehicles in the model year. (2) A manufacturer's compliance with CAA GHG standards for light-duty and medium-duty vehicles—including through purchased credits—deems compliance with applicable CAFE standards for those vehicles in the model year. (As background, CAFE standards require automakers to meet specified average fuel economy levels across their fleets, while EPA GHG standards limit fleet-average emissions of CO2 and other gases from new vehicles to reduce transportation-related climate impacts.)

This section directs the EPA Administrator, in consultation with the Secretary of Transportation, to publish in the Federal Register, not later than 180 days after enactment, new greenhouse gas emissions standards (i.e., for carbon dioxide, methane, nitrous oxide, and other climate-contributing gases) for heavy-duty trucks beginning no earlier than model year 2027. Until those standards are finalized, it maintains the model year 2024 standards from the EPA and National Highway Traffic Safety Administration's Phase 2 final rule (81 Fed. Reg. 73478 (October 25, 2016)) for medium- and heavy-duty engines and vehicles. The new standards must (1) reflect achievable technological advancements based on market readiness and affordability and (2) be based on evidence from industry capacity, historical market adoption data, technological advancements, and independent expert assessments of feasibility and economic impact, including on motor vehicle manufacturing job quality and stability; the Administrator must consult, after notice, with manufacturers, automotive dealers, end users, energy producers, consumer groups, and other stakeholders.