U.S. EPA Phase 3 greenhouse gas emission standards for heavy-duty vehicles

In April 2024, the U.S. Environmental Protection Agency (EPA) introduced Phase 3 GHG emission standards for heavy-duty vehicles (HDVs), covering model years 2027 to 2032. These standards target substantial reductions in CO₂ emissions from trucks and buses, aiming for up to a 60% emissions reduction for vocational trucks and 40% for tractor trucks by 2032. The new rules allow manufacturers flexibility in how they achieve these goals without mandating the sale of zero-emission vehicles (ZEVs).

Key policy elements include:

• Emission reduction targets: CO₂ emissions must be reduced by up to 60% for vocational trucks and 40% for tractor trucks by model year 2032.
• ZEV adoption: ZEVs are expected to make up a larger portion of vehicle production, but there is no requirement to sell them.
• Credit transfer across vehicle averaging sets: new provisions for manufacturers to achieve compliance by pooling and trading emission credits across different weight-based averaging sets.
• Economic and environmental impact: The standards will cut 1 billion metric tons of CO₂ emissions and generate $13 billion in annual benefits by 2055.
• Battery and hydrogen vehicle requirements: New rules include monitoring battery health and requiring warranties for key battery electric and hydrogen fuel-cell electric vehicle components.
• A 2026 assessment of charging and refueling infrastructure growth will be performed in collaboration with Department of Energy and Department of Transportation

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