Staff Report –
WASHINGTON, D.C. – Spurred on by high gas prices and increasing evidence of climate change due to global warming from the burning of fossil fuels for transportation as well as energy, the Biden Administration moved quickly and aggressively to reverse Trump administration rollbacks in new car fuel economy standards and announced much higher standards on Friday for light cars and trucks.
After conducting the research into the tougher standards, the U.S. Department of Transportation released a new set of tailpipe pollution guidelines that would require average fuel efficiency of new cars and light trucks to reach 49 miles per gallon in less than four years, an aggressive timeline.
Biden administration officials said the new standards would help cut greenhouse gas emissions, air pollution and save consumers money at the gas pump.
“Today’s rule means that American families will be able to drive further before they have to fill up, saving hundreds of dollars per year,” said U.S. Transportation Secretary Pete Buttigieg. “These improvements will also make our country less vulnerable to global shifts in the price of oil, and protect communities by reducing carbon emissions by 2.5 billion metric tons.”
The landmark fuel economy standards follow President Biden’s executive order to drive American leadership forward on clean cars. The new standards will require auto companies to make vehicles get more miles per gallon, which will not only save consumers money but reduce emissions from the transportation sector that contribute to air pollution and climate change due to global warming.
The new Corporate Average Fuel Economy standards require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks by model year 2026.
This would be the strongest fuel efficiency standards to date implanted by the federal government to date, and studies show the new standards will increase fuel efficiency 8 percent annually for model years 2024-2025 and 10 percent annually for model year 2026. They will also increase the estimated fleetwide average by nearly 10 miles per gallon for model year 2026, relative to model year 2021.
“Strong fuel economy standards strengthen U.S. energy independence and help reduce reliance on fossil fuels,” the department said in a press release announcing the new standards.
The Environmental Protection Agency, which shares responsibility for overseeing the standards and issued its own companion rule in December, estimates its tightened emissions rules would achieve roughly 40 miles per gallon in real-world conditions, up from about 32 miles per gallon under the Trump administration regulations.
With gas prices rising, oil markets upset by the war in Ukraine and Biden’s overall climate legislation agenda stalled in Congress, administration officials have emphasized the savings Americans will see at the pump in the coming years because of the new regulations. Americans buying new vehicles purchased through 2030 will spend about $192 billion less on gas because of the rule, the administration says.
Mileage standards are an important tool for cutting greenhouse gas emissions, an important step to fighting climate change since the transportation sector is the largest source of greenhouse gasses in the environment in the United States along with coal-fired power plants.
Buttigieg called the rule “a big step, and just one part” of a broader strategy to address climate change by shifting toward cleaner energy and electric vehicles. In making the announcement, he also called on Congress to pass a stalled measure that would provide tax credits to buyers of electric vehicles. That would drop the price of an electric pickup “from about 40,000 bucks down into the 20s. We could do that through policy that is available right now,” he said.
The new regulation came with reams of backup documentation, cost-benefit and environmental-impact analyses, that show the complexities of reducing emissions from gas-powered vehicles even as the auto industry pledges to sharply increase its sales of electric vehicles.
History
Since CAFE was signed into law in 1975, the standards have reduced American oil consumption by 25 percent, or approximately 5 million barrels a day since then. The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, compared to continuing under the old standards.
Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump, the department said. Americans purchasing new vehicles in 2026 will get 33 percent more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips.
“NHTSA is helping American families by making life more affordable – and the air cleaner for their children. These vehicles will be better for the environment, safer than ever, and cost less to fuel over their lifetimes,” said Dr. Steven Cliff, NHTSA’s Deputy Administrator.” We are proud to fulfill President Biden’s mission to move us to a more sustainable future, one that strengthens American energy independence and helps put more money in American families’ pockets.”
The new standards will also reduce greenhouse gas emissions and air pollution. These reductions will improve public health and provide environmental justice for communities who live near freeways and other heavily trafficked roadways, which are disproportionately low-income communities of color.
Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, said the new rule fell short of what is needed in the way mileage standards are governed in the United States.
“The stringency level isn’t up to what the climate challenge presents, and there are too many loopholes that allow auto companies to make too many gas-guzzlers,” Becker said. He said mileage standards for SUVs, pickups and vans are weaker than those for cars, which has contributed to automakers’ shift away from producing smaller passenger cars.
Yet this announcement of new standards comes as the automobile industry is retooling production for future models in response to rapidly growing market demand for cleaner, more fuel-efficient vehicles. Nearly all auto manufacturers have announced new electric vehicle models.
More robust fuel economy standards will encourage the industry to continue improving the fuel economy of cars powered by internal combustion engines as the transportation sector transitions to electrification.
Gina McCarthy, the White House’s national climate adviser, said in an appearance Friday with Buttigieg and Deputy NHTSA Administrator Steven Cliff that the administration sees an opportunity in the challenge of reaching Biden’s goal of at least halving emissions compared with 2005 levels by 2030. Cleaner, more efficient transportation is key to getting there, she said.
“It is not about pain and suffering. It’s about grabbing the future for our industry, for our unions and for America,” McCarthy said. “That’s what we’re doing today.”
Cliff said that with the standards announced Friday, the nation will cut pollution by roughly the same amount as if 5 million of today’s cars were taken off the road.
“And we’ll do this with American ingenuity,” Cliff said. “We, as a nation, have never shied away from a challenge.”
Today’s final fuel economy standards follow President Biden’s Executive Order 13990, which directed NHTSA to review the 2020 “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks” final rule. These CAFE standards also support the Biden-Harris Administration’s priorities to cut costs for American families, improve public health, combat climate change, and create and sustain good-paying jobs with a free and fair choice to join a union.
For more on today’s announcement, please visit .
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