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Transportation and Climate

GHG Emission Standards for Light-Duty Vehicles: Manufacturer Performance Report for the 2014 Model Year

Determining Compliance Status

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The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) jointly established a National Program consisting of standards for light-duty vehicles that reduce greenhouse gas (GHG) emissions and improve fuel economy. EPA’s GHG rules for light-duty vehicles require compliance with progressively more stringent GHG emission standards for the 2012 through 2025 model years. This report provides substantial detail on manufacturers’ performance in meeting the 2012 through 2014 model year standards. EPA intends to report annually on manufacturer performance.

1. For the third consecutive year, the auto industry outperformed the GHG standard by a substantial margin

Overall industry compliance in model year 2014 was 13 grams/mile better than required by the 2014 GHG emissions standard. This marks the third consecutive model year of industry outperforming the standards by a wide margin; industry over-compliance in 2013 was 12 grams/mile and in 2012 was 11 grams/mile better than required. This industry-wide performance means that consumers continue to buy vehicles with lower GHG emissions than required by the EPA standards. See Section 3 for more detail on these values. Manufacturers continued this level of performance against increasingly stringent standards. While the industry-wide GHG standards decreased by 5 grams/mile from 2013 to 2014, manufacturers matched this increase in stringency by reducing compliance values by 5 grams/mile in 2014.

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2. Most manufacturers outperformed their individual 2014 standard

Most large manufacturers achieved fleet GHG compliance values equal to or lower than required by their unique 2014 standard. Ten of the twelve manufacturers with sales greater than 100,000 vehicles reported meeting or beating their standard, with margins of compliance ranging from 28 grams/mile (Subaru) to exactly meeting their standard with no margin (Fiat Chrysler). Two manufacturers, Mercedes and Kia, missed their unique 2014 standards by 5 and 8 grams/mile, respectively, thus generating deficits in the 2014 model year. More detail about model year 2014 performance is provided in Section 3. The figure below does not include the impact of credit transfers (within a company) reported from prior model years or reported credit trades (transactions between companies), and thus does not portray whether or not a manufacturer has complied with 2014 model year standards. The manufacturers that did not outperform their 2014 standard – Mercedes and Kia – in fact have reported sufficient credits from prior model years to be in compliance with their respective 2014 model year standards.

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3. All large manufacturers are in compliance with the 2012-2014 GHG standards

The majority of manufacturers, representing more than 99 percent of U.S. sales, have reported compliance with the standards for the 2012-2014 model years. In fact, 20 of 24 manufacturers are reporting a positive credit balance going into the 2015 model year, meaning that these manufacturers have met the standards in all of the 2012-2014 model years (credits cannot be carried forward if a deficit exists in a prior model year). The manufacturers currently reporting deficits in any or all of the 2012-2014 model years are allowed to carry those deficits forward for three model years, giving them time to generate or purchase credits to demonstrate compliance with the 2012-2014 model year standards. Thus, a manufacturer with a deficit remaining from the 2012 model year has until the end of the 2015 model year to offset that deficit. The current status of manufacturers carrying a deficit into the 2015 model year is neither compliance nor non-compliance – rather, they have not yet fully demonstrated compliance. The makeup of these credit and deficit balances is tracked by model year “vintage” as explained in Section 5.

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4. Manufacturers continue to use a wide variety of compliance flexibilities that were designed into the program

EPA designed the standards with a wide range of flexibilities to allow manufacturers to maintain consumer choice, spur technology innovation, and minimize compliance costs, all while achieving significant GHG reductions. The flexibilities built into the program include standards based on vehicle size (or “footprint”), emissions averaging within car and truck fleets, credit trading between car and truck fleets, optional programs to generate credits through use of GHG-reducing technologies, and processes to bank and/or trade credits. The result is that manufacturers can meet the standards while meeting consumer demand for a wide variety of vehicles, from high-performance vehicles to fuel-efficient hybrids, and from full-size pickups to small cars. In addition, the optional credit programs are facilitating the development and introduction of new technology. For example, manufacturers generated credits for using air conditioning and off-cycle technology credits. Off-cycle technologies included stop-start, active engine and transmission warm-up strategies, high efficiency exterior lighting, and window glazing that reduces solar load to the vehicle’s interior volume. Five manufacturers have also now introduced a new and significantly lower-GHG air conditioning refrigerant to the U.S. automotive market, reducing GHG emissions and helping them meet the GHG standards. Credit exchanges within and between companies also provide more flexibility in the program. Sections 2 through 4 provide more details on the use of the credits and flexibilities by each manufacturer.

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2014 Model Year Report

2013 Model Year Report

The 2014 model year report, available above, contains updated data for previous model years as well and supersedes all previous versions of the report. The 2013 model year report is available for reference only.

This page is maintained by EPA's Office of Transportation and Air Quality (OTAQ).
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