S. 711 — Transportation Freedom Act

This section defines four terms for purposes of this subtitle: (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; and directs the EPA Administrator, in coordination with the Secretary of Transportation and notwithstanding any other provision of law, to establish greenhouse gas emissions standards for new motor vehicles and new motor vehicle engines under section 202 of the Clean Air Act for the same model years. Both sets of standards must (1) be based on economic practicability and achievable technological advancements reflecting market readiness and affordability, supported by evidence of industry capacity, historical data, and independent assessments of feasibility and economic impacts including motor vehicle manufacturing jobs; (2) for CAFE standards, exclude any consideration of dedicated alternative fuel automobiles in baseline fleets or scenarios; and (3) for greenhouse gas standards, be technologically feasible and economically practicable for all vehicle weight classes or categories when using reformulated gasoline and not require, directly or indirectly, production or sale of electric vehicles. The Secretary and Administrator must consult with manufacturers, energy producers, consumer groups, and other stakeholders and consider their feedback; submit biennial reports to Congress on progress toward the 2035 standards; and may adjust the standards based on report findings, market conditions, technological advancements, and economic impacts. If the standards are not established by the specified deadlines, model year 2025 CAFE and greenhouse gas standards continue in effect through model year 2035.

This section establishes reciprocal deemed compliance between Corporate Average Fuel Economy (CAFE) standards under 49 U.S.C. §32902 and greenhouse gas (GHG) fleet-average emissions standards (including carbon dioxide) under Clean Air Act §202 (42 U.S.C. §7521). (1) It amends CAA §206 (42 U.S.C. §7525) to deem a manufacturer in compliance with CAA GHG standards applicable to its passenger automobiles, non-passenger automobiles, and work trucks in a model year if it complies with applicable CAFE standards for those vehicles, including through civil penalties (49 U.S.C. §32919) or credit purchases (49 U.S.C. §32903). (2) It amends 49 U.S.C. §32902 to deem a manufacturer in compliance with CAFE standards applicable to its light-duty vehicles and medium-duty vehicles (as defined in 40 C.F.R. §86.1803-01 or successor) in a model year if it complies with CAA GHG standards for those vehicles, including through purchased credits. (Thus, automakers may satisfy both EPA GHG and NHTSA CAFE requirements by meeting either program's standards for the specified vehicles.)

This section directs the EPA Administrator, in consultation with the Secretary of Transportation, to publish in the Federal Register 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, within 180 days of enactment. Until finalized, 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)) remain in effect for such vehicles (i.e., 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 regarding feasibility and economic impact, including on motor vehicle manufacturing job quality and stability. In developing the standards, the Administrator must consult with manufacturers, automotive dealers, end users, energy producers, consumer groups, and other stakeholders after providing adequate notice.