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.

Under the Trump Administration, it is anticipated that the Environmental Protection Agency (EPA) will revise the Multi-Pollutant Emissions Standards for New Light Duty Vehicles for Model Years 2027-2032, which aggressively increased the number of battery electric vehicles that must be sold. While the Agency softened the total reduction of Greenhouse 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. Additionally, with the passage of the CRA under the Trump Administration which curtails California’s ability to implement its Advanced Clean Cars II regulation, we have stopped the Zero Emission Vehicle mandate. Nevertheless, we will continue to work with the Trump Administration and EPA to refine the GHG rule. EPA will initiate a new rulemaking process to replace the Biden rule with lower standards.

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 Biden Final Rule and anticipated Trump revision on GHG.

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. We urge the Trump Administration to strike a balance on achieving meaningful GHG reductions, while providing a viable multi-path compliance pathway for auto manufactures.

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.