Biden proposes stricter fuel economy rules for cars and trucks

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The Biden administration proposed strict new fuel economy standards for automakers that, if passed, would boost standards to an fleet-wide average of 58 miles per gallon for cars and light-duty trucks by 2032, part of its broader effort to slash emissions from the transportation sector.

The proposed Corporate Average Fuel Economy, or CAFE standards, were published Friday by the U.S. Department of Transportation and the National Highway Traffic Safety Administration. They target a 2% per year improvement in fuel efficiency for passenger cars and a 4% per year improvement for light trucks beginning in model year 2027 and increasing through model year 2032.

The new CAFE standards are more stringent than the previously finaized rule, which require a fleet average of 49 mpg by 2026, and are designed to"complement and align" with EPA's proposed tailpipe emissions standards, NHTSA said in a statement. Americans would also save a combined $50 billion in fuel costs over their vehicles lifetimes, DOT said.

The Alliance for Automotive Innovation, which represents nearly all major U.S. auto manufacturers besides Tesla, said in a recent filing that the EPA's proposal is a “de facto electric vehicle mandate” that would disadvantage car manufacturers and trigger “substantial” price hikes for consumers.

 

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