The Biden administration has proposed new fuel economy standards for passenger cars and light trucks, which are expected to have a significant impact on car prices and save Americans money at the pump. The new standards, unveiled by the Department of Transportation‘s National Highway Traffic Safety Administration (NHTSA), aim to improve fuel efficiency by 2% for passenger cars and 4% for light trucks starting in 2027. Additionally, pickup trucks and work vans will be required to increase their fuel efficiency by 10% annually from 2030 onwards.
The proposed standards could push the average U.S. fleet fuel economy to reach 58 miles per gallon by 2032, more than double the fuel efficiency of model year 2022 cars, which had an average fuel economy of 26.4 miles per gallon. Automakers will be required to meet these fuel efficiency targets within a decade or face significant penalties.
Transportation Secretary Pete Buttigieg expressed the benefits of better vehicle fuel efficiency, stating that it would put more money in Americans’ pockets and strengthen the nation’s energy security. The administration claims that if the new standards are finalized, consumers could save over $50 billion on fuel over the lifetime of their vehicles. Additionally, the standards aim to reduce oil dependence by cutting gasoline consumption by 88 billion gallons by 2050.
Moreover, the proposed fuel economy standards are expected to have a positive environmental impact. The administration estimates that they would reduce carbon emissions by more than 900 million tons through 2050, equivalent to removing over 233 million vehicles from the road during that time. The rules are seen as a way to tackle climate change and promote a cleaner and more sustainable transportation sector.
However, the proposal is likely to face significant resistance from Republican lawmakers, the fossil fuel industry, and automakers. General Motors, for instance, warned that the proposed standards could cost companies up to $300 billion in fines for not meeting the fuel efficiency requirements. The industry expressed concerns about the potential rise in car prices and the negative impact on consumers. Critics argue that the proposed standards resemble an electric vehicle (EV) mandate, which they view as an overreach that limits consumer choice and harms energy security.
The proposed fuel economy standards come on the heels of the Environmental Protection Agency’s (EPA) recently proposed aggressive tailpipe emissions standards, which aim to achieve 67% of new sedan, crossover, SUV, and light truck purchases to be electric by 2032. The NHTSA stated that its rules would complement and align with the EPA’s emissions standards.
Moving forward, the NHTSA will be seeking input and comments from stakeholders to optimize the effectiveness of the proposed standards while minimizing compliance costs. The debate surrounding the new fuel economy standards highlights the ongoing tensions between environmental protection, consumer affordability, and the interests of the automotive industry.
In conclusion, the Biden administration’s proposal for new fuel economy standards aims to improve vehicle fuel efficiency, reduce carbon emissions, and save consumers money on fuel. While these standards have environmental benefits and promote energy security, they also face criticism for potentially driving up car prices and limiting consumer choice. The proposals will continue to be debated and refined in the coming months.
