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Key Takeaways
- Automakers say current EPA GHG standards for 2027–2032 are unachievable due to slowing EV demand, charging gaps, and loss of federal incentives.
- The Alliance for Automotive Innovation recommends revising the standards or issuing interim rules to ensure regulatory stability.
- EV adoption has stalled at under 10% of new vehicle sales in 2025, well below projections used to set current standards.
- EPA’s decision could reshape the federal approach to regulating vehicle emissions and influence long-term industry investment.
The Alliance for Automotive Innovation, representing most major automakers and suppliers in the U.S., has submitted formal comments to the U.S. Environmental Protection Agency (EPA) on its proposed reconsideration of the 2009 Endangerment Finding and federal greenhouse gas (GHG) vehicle standards.
The EPA’s proposal, issued August 1, 2025, seeks input on whether to revise or rescind existing motor vehicle GHG emission standards. The industry group argues that current standards for model years 2027–2032 are no longer feasible, citing changing market conditions, flattened consumer demand for electric vehicles (EVs), infrastructure constraints, and the repeal of federal EV incentives.
According to the group’s letter, the GHG standards finalized in 2024 under the EPA’s “Multi-Pollutant Rule” assumed rapid EV adoption supported by federal subsidies and infrastructure investments. However, EV market share has plateaued at under 10% of new vehicle sales through the first half of 2025, far below EPA’s projected path toward 50% market share by 2030.
The letter highlights the July 2025 passage of the One Big Beautiful Bill Act, which eliminated key incentives under the Inflation Reduction Act, including EV purchase tax credits and battery production subsidies. The Alliance for Automotive Innovation contends this change significantly undermines the assumptions behind the current standards.
The organization also points to slower-than-expected charging infrastructure growth and supply chain challenges as barriers to compliance. It warned that without adjustments, automakers face “imminent compliance challenges and infeasible standards” that could disrupt the automotive market.
The letter urges EPA to:
- Document why current standards are no longer appropriate.
- Issue revised, achievable GHG standards as a “backstop” if the 2009 Endangerment Finding is rescinded.
- Consider interim rules based on recent model years to provide regulatory stability.
- Maintain programs that offer compliance flexibility, such as credit trading and off-cycle credits.
The group emphasized the need for a legally durable, stable regulatory environment that balances emissions reduction goals with consumer affordability, infrastructure readiness, and long-term competitiveness of the U.S. auto industry.
