New Vehicle Fuel Economy Standards Finalized by Biden Administration to Save Americans Billions
The Biden administration has announced the finalization of new vehicle fuel economy standards that are expected to save Americans a significant amount of money in fuel costs while also reducing pollution. The National Highway Traffic Safety Administration (NHTSA) has stated that these standards will increase fuel economy by 2 percent per year for passenger cars between model years 2027 and 2031. Light trucks, on the other hand, will see a 2 percent annual increase for model years 2029 to 2031.
According to the NHTSA, the average fuel economy for light-duty vehicles will reach approximately 50.4 miles per gallon (mpg) by model year 2031. This is a slight decrease from the initially proposed 55.7 mpg last year. Transportation Secretary Pete Buttigieg expressed his support for the new standards, highlighting their potential benefits. He stated, “Not only will these new standards save Americans money at the pump every time they fill up, they will also decrease harmful pollution and make America less reliant on foreign oil.”
The estimated savings for car owners are substantial, with more than $600 in gasoline costs expected to be saved over the lifetime of each vehicle. This will undoubtedly provide financial relief to many individuals and families. Additionally, the new standards are not limited to passenger cars and light trucks. Heavy-duty pickup trucks and vans will also experience an improvement in fuel economy, with a 10 percent annual increase for model years 2030 to 2032 and an 8 percent increase for model years 2033 to 2035. The goal is to achieve a fleetwide average of 35 mpg by model year 2035.
The NHTSA estimates that these new standards will have a significant impact on both fuel consumption and carbon dioxide emissions. It is projected that nearly 70 billion gallons of gasoline will be saved, and over 710 million metric tons of carbon dioxide emissions will be prevented by 2050. These figures demonstrate the potential long-term environmental benefits that can be achieved through these fuel economy standards.
Collaboration between the NHTSA and the Environment Protection Agency (EPA) has been crucial in developing these standards. The agencies have worked closely together to optimize the effectiveness of the standards while also reducing compliance costs. NHTSA Deputy Administrator Sophie Shulman emphasized the positive outcomes of this collaboration, stating, “These new fuel economy standards will save our nation billions of dollars, help reduce our dependence on fossil fuels, and make our air cleaner for everyone. Americans will enjoy the benefits of this rule for decades to come.”
While the new standards have received overall support, concerns have been raised by some industry representatives. John Bozzella, president and CEO of the Alliance for Automotive Innovation, expressed apprehension about the Corporate Average Fuel Economy (CAFE) rule proposed last year. He questioned whether automakers should face penalties if they comply with the EPA’s greenhouse gas rules. Bozzella argued that such fines would not contribute to environmental benefits or additional fuel economy and would divert capital away from investments in electric vehicle transition.
However, Bozzella also acknowledged the coordination between different federal tailpipe rules, stating, “It looks like the left hand knew what the right hand was doing. That’s the kind of coordination we recommended. So that’s good and appreciated.” He further suggested that as the world rapidly moves toward electrification, there may be a need to reassess the necessity of CAFE.
In conclusion, the finalization of new vehicle fuel economy standards by the Biden administration is expected to provide significant benefits to both American consumers and the environment. The projected savings in fuel costs, reduction in pollution, and progress towards electric vehicle transition are all positive outcomes of these standards. While there are differing opinions on certain aspects, overall, the standards are seen as a step in the right direction. The collaboration between the NHTSA and EPA has played a crucial role in developing effective and cost-efficient standards that will have a lasting impact on the automotive industry and the nation as a whole.
