US proposes 58 mpg fuel economy standards by 2032.

US proposes 58 mpg fuel economy standards by 2032.

Biden Administration Proposes Hiking Fuel Economy Standards to Cut Emissions and Reduce Fuel Usage

Washington, July 28 (ANBLE) – In a move to combat greenhouse gas emissions and reduce fuel usage, the Biden administration has proposed raising fuel economy standards to a fleet-wide average of 58 miles per gallon by 2032¹. The proposal, put forth by the National Highway Traffic Safety Administration (NHTSA), covers the model years from 2027 to 2032. The plan includes a 2% annual increase for passenger cars and a 4% annual increase for light trucks in the Corporate Average Fuel Economy (CAFE) requirements². Additionally, the NHTSA is proposing new fuel efficiency standards for heavy-duty pickups and vans, with a 10% annual increase from 2030 to 2035³.

This proposal builds upon the regulations finalized by the NHTSA in 2022, which required a fleet average of 49 miles per gallon by 2026⁴. These rules already constituted an 8% increase in efficiency for 2024 and 2025 and a 10% increase for 2026⁵. The new proposal is estimated to save vehicle owners approximately $1,043 per vehicle in lifetime fuel costs, while increasing average vehicle costs by $932⁶. Furthermore, the NHTSA expects the proposal to significantly reduce harmful pollution, improve energy security, and spur manufacturers to achieve substantial fuel economy improvements during the standard-setting timeframe⁷.

It is important to note that CAFE requirements are not as stringent as the emissions proposal put forth by the Environmental Protection Agency (EPA) in April, which aims to cut vehicle tailpipe emissions⁸. The NHTSA is legally restricted from considering electric vehicles’ fuel economy when setting standards⁹. In contrast, the EPA’s proposed standards for 2027-2032 are projected to cut emissions by 56%, resulting in 67% of new vehicles in 2032 being electric¹⁰.

The NHTSA’s proposal, if implemented, is expected to result in significant reductions in gasoline consumption. The agency estimates that by 2050, it would save approximately 88 billion gallons of gasoline¹¹. This reduction in fuel consumption aligns with the broader objectives of reducing greenhouse gas emissions and transitioning to more sustainable energy sources.

The NHTSA is seeking public input on five alternative options, including not increasing requirements or raising them annually by 6% for cars and 8% for light trucks¹². According to the agency, its preferred alternative strikes a balance between achieving the desired fuel economy goals and avoiding potential consumer acceptance or sales issues¹³. This inclusive approach ensures that the market can bear the proposed cost without hindering consumer acceptance.

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Industry leaders have varying perspectives on the proposal. The Alliance for Automotive Innovation, representing companies such as General Motors, Toyota Motor, and Volkswagen, has asked the EPA to soften its emissions proposal, claiming that it is neither reasonable nor achievable¹⁴. In contrast, Tesla has urged the EPA to set even stricter standards¹⁵. The alliance has yet to provide a definitive stance on the NHTSA’s proposal, stating that it is currently under review¹⁶.

The Biden administration’s proposed increase in fuel economy standards demonstrates a commitment to tackling climate change and reducing carbon emissions. By incentivizing manufacturers to improve fuel efficiency and encouraging the adoption of electric vehicles, the administration aims to make significant strides towards a more sustainable transportation sector. If implemented, these regulations would not only lead to cost savings for vehicle owners but also contribute to a cleaner and greener future.

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