Environmental Protection Agency (EPA) Emissions Regulations

Why should I care?

Toyota is committed to offering a full array of electrified vehicle options to give all our customers the opportunity to reduce their carbon footprint.

The Environmental Protection Agency (EPA) has finalized its Multi-Pollutant Emissions Standards for New Light Duty Vehicles for Model Years 2027-2032 , which aggressively increase the number of battery electric vehicles that must be sold. While the Agency softened the total reduction of Green House Gases (GHG) required for Model Years 2027-28, the reductions required to meet compliance in the later Model Years are significant and will impact Toyota’s ability to deliver a broader product mix to the U.S. market.

Thanks to the efforts of Toyota, our team members, and our dealer partners, the rules were softened in the early years of 2027-2030 and restored the compliance value of plug-in hybrids. Nevertheless, the new rules appear to be far ahead of consumer demand for EVs. The Biden Administration maintained the 2032 targets, essentially forcing well over 50% of all new vehicles sold to be BEVs in just eight years.

What should I know?

Toyota has been consistent in our position that consumers need a variety of powertrain options to best fit their needs while still reducing carbon emissions. We followed the lead of Akio Toyoda, who consistently spoke about carbon being the common enemy, and the need for a multi-pathway approach to allow all consumers to contribute to carbon reduction. We successfully educated consumers and policymakers about the value of a multi-pathway approach and the 1/6/90 rule detailing how the same amount of minerals from one BEV could supply 6 PHEVs or 90 HEVs – and reduce more carbon.

What Should I Say?

Toyota’s Statement on the Final Rule

Toyota believes the best way to reduce carbon emissions as much as possible, as soon as possible is to give consumers a variety of choices including battery electrics, hydrogen electrics, plug-in hybrids, hybrids, and fuel-efficient gas vehicles.

The EPA’s regulatory mandate requires a precipitous shift from around 8% market share of battery electric vehicles today to more than half by 2032 – an aggressive, six-fold increase over just eight years. Toyota will continue to lead the industry and comply with regulations, but serious challenges around affordability, charging infrastructure, and supply chain will need to be addressed before this mandate is realized.

Ultimately, the American consumer drives the auto business.

Why is it important to offer customers a variety of powertrains, rather than focusing purely on BEVs?

We are seeing a softening in consumer demand for BEVs, and there are serious vulnerabilities in the supply chain for batteries and battery materials. Limited access to charging infrastructure continues to be a concern. All of these issues will need to be addressed before BEVs become widely adopted.
Consumers may turn away from BEVs and hold onto less fuel-efficient vehicles due to affordability, utility, range, and reliability concerns.
We believe to reduce carbon as much as possible, as soon as possible, and we should encourage adoption of all carbon-reducing technologies, including BEVs, PHEVs, HEVs, FCEVs, and low emission internal combustion engines.
Toyota’s robust portfolio of powertrains will allow us to comply with the regulations and compete by offering our customers a choice of vehicles that meet their needs while reducing carbon emissions.

Want to learn more? Contact:

jamie.boone@toyota.com