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Raising Fuel Economy Standards for New Vehicles in the U.S.

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The U.S. government has put forth a proposal to raise the requirement for new-vehicle fuel economy by 18%, starting with the 2027 model year and fully enforced by the 2032 model year.

Under this proposal, the average fuel economy across all cars, pickups, SUVs, and commercial vans would be approximately 43.5 miles per gallon in real-world driving conditions, not just during testing.

These proposed numbers were recently announced by the National Highway Traffic Safety Administration (NHTSA), and a 60-day comment period has now been opened to gather feedback on the matter.

It’s worth noting that the current corporate average fuel economy (CAFE) standards, implemented by the Biden administration, require a fleet of new vehicles to achieve an average fuel economy of 36.75 mpg by 2026. This was a reversal of the fuel-economy requirements rollback initiated by former President Donald Trump at the behest of the auto industry.

Increasing the fuel economy of vehicles is highly favored among consumers. In fact, a recent survey conducted by Consumer Reports in 2022 revealed that 95% of Americans consider fuel economy to be an important factor when choosing their next vehicle, with seven out of ten individuals stating it is of “very important” or “extreme importance.”

NHTSA has expressed its commitment to aligning regulations with the EPA’s proposed reductions in greenhouse gas emissions from vehicles. However, in case of any discrepancies, automakers will likely have to follow the more stringent regulation.

NHTSA Acting Administrator Ann Carlson emphasizes the coordination between EPA and NHTSA in maximizing the effectiveness of both agency standards while minimizing compliance costs.

The proposed increase in CAFE standards has garnered positive reception from environmental groups. They believe that cleaner vehicles can benefit not only the environment but also the wallets of all Americans, especially those with lower incomes. Katherine Garcia, who leads the Sierra Club’s Clean Transportation for All program, underscores the importance of addressing rising gas prices and the impact on individuals.

Read: Why are gas prices going up again? Brace for further increases, analysts say

Proposal to Reduce Vehicle Emissions: A Key Step in Addressing Pollution

The Environmental Protection Agency (EPA) has put forth a proposal to reduce emissions from vehicles, which, alongside another proposal, is considered a crucial tool in combating the nation’s top source of pollution. According to NHTSA (National Highway Traffic Safety Administration) estimates, implementing these new regulations will result in more than $50 billion in fuel savings over the lifetime of the vehicle fleet on American roads. Additionally, if NHTSA’s preferred alternative is adopted, it will collectively save over 88 billion gallons of gasoline by 2050.

Importance of Clarity for Manufacturers:

Leading auto industry trade group, including General Motors (GM), Toyota, Ford, Chrysler, Jeep parent Stellantis, and others, emphasized the need for clarity from the EPA and NHTSA regarding compliance requirements. The group expressed concerns that automakers should not be at risk of violating EPA’s greenhouse gas emissions rules if they comply with NHTSA’s Corporate Average Fuel Economy (CAFE) standards, thus avoiding civil penalties.

Industry Challenges in Meeting Electric Vehicle Targets:

While supportive of reducing emissions, the auto alliance raised concerns about the feasibility of EPA-led emissions policies that necessitate a substantial increase in electric vehicle (EV) sales by 2032. Achieving this target appears unlikely, even with the current upward trend in EV sales. The EPA suggests that 67% of new vehicles sold in 2032 should be electric to align with the greenhouse gas emissions goals. However, EVs currently constitute only around 7% of new vehicle sales. Automakers have been advised that a combination of EVs, gas-electric hybrids, and efficiency improvements in gas and diesel vehicles can help them meet the proposed requirements.

NHTSA’s Fuel Efficiency Improvements:

NHTSA’s proposal outlines an annual 2% increase in fuel mileage for passenger cars, a 4% increase for light trucks, and an ambitious 10% improvement per year for commercial pickup trucks and work vans.

Overall, these proposals hold great promise in addressing pollution through reduced vehicle emissions. By implementing these measures, significant fuel savings can be achieved while promoting the adoption of electric vehicles and the implementation of more fuel-efficient technologies.

The Associated Press contributed.

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