New Federal Fuel Economy Standards Unveiled by Biden Administration
The Biden administration has announced new federal rules that will require new vehicles sold in the U.S. to average around 38 miles per gallon of gasoline by 2031. This is a significant increase from the current average of 29 mpg. The final rule will gradually increase fuel economy by 2% per year for model years 2027 to 2031 for passenger cars, and for SUVs and light trucks, the increase will be 2% per year for model years 2029 to 2031. These requirements have been released by the National Highway Traffic Safety Administration.
These final figures are below the proposal that was released last year. According to administration officials, the less strict requirements will provide the auto industry with flexibility to focus on electric vehicles (EVs). They argue that higher gas-mileage requirements would have imposed significant costs on consumers without sufficient fuel savings to offset them. President Biden has set a goal for 50% of all new vehicles sold in the U.S. in 2030 to be electric as part of his efforts to combat climate change, as gasoline-powered vehicles are the largest single source of U.S. greenhouse gas emissions.
The new standards are expected to save nearly 70 billion gallons of gasoline through 2050, preventing over 710 million metric tons of carbon dioxide emissions by midcentury. Transportation Secretary Pete Buttigieg stated that not only will these new standards save Americans money at the pump, but they will also decrease harmful pollution and reduce America’s reliance on foreign oil. He estimates that car owners will save over $600 in gasoline costs over the lifetime of their vehicle.
While promoting EVs, Biden needs the cooperation of the auto industry and political support from auto workers, a crucial voting bloc. The United Auto Workers union has endorsed Biden but wants to ensure that the transition to EVs does not result in job losses and insists on competitive wages for workers involved in building EVs and batteries. On the other hand, former President Donald Trump and other Republicans have criticized Biden’s push for EVs as unfair to consumers and an example of government overreach.
The National Highway Traffic Safety Administration acknowledged that its regulations align with new Environmental Protection Agency rules that tighten standards for tailpipe emissions. However, if any discrepancies arise, automakers will likely have to follow the most stringent regulation. Both agencies share responsibility for setting fuel economy requirements since burning less gasoline is the fastest way to reduce greenhouse gas emissions.
John Bozzella, president and CEO of the Alliance for Automotive Innovation, expressed that the Biden administration’s decision appears to have worked well with other federal tailpipe rules. However, he also mentioned that a discussion is necessary regarding the need for corporate average fuel economy (CAFE) standards in an increasingly electrified vehicle fleet. Bozzella explained that fuel economy standards were originally created in the 1970s to promote energy conservation and independence but are now outdated as vehicles have become highly efficient and EVs do not even have a tailpipe.
Dan Becker from the Center for Biological Diversity criticized the new rules as insufficient. He accused the highway safety agency of allowing automakers to continue producing cars, SUVs, and pickups that will consume excessive fuel and pollute for many years. He argued that the weak rule requiring only a 2% improvement in fuel economy falls short of the agency’s own requirement to establish standards at the highest technologically feasible level.
The National Highway Traffic Safety Administration clarified that its rule includes a 10% improvement per year for commercial pickup trucks and work vans. Automakers will have the flexibility to meet these requirements through a combination of electric vehicles, gas-electric hybrids, and efficiency improvements in gas and diesel vehicles.
Overall, these new fuel economy standards reflect the Biden administration’s commitment to combating climate change and transitioning to cleaner forms of transportation. While there are differing opinions on the impact and adequacy of these rules, they represent a step towards reducing greenhouse gas emissions from the transportation sector and promoting the adoption of electric vehicles.
