Washington – In a move that seeks to balance the fight against climate change with difficult business and political realities, President Joe Biden’s administration on Friday lowered fuel economy standards set for new vehicle sales over the next decade.
The administration released its final regulations, Corporate Average Fuel Economy standards, commonly known as CAFE. The new rules represent a final piece in Biden’s vision – put into practice by a series of regulations – about the size of the role the auto industry should play in reducing greenhouse gas emissions in the US.
The standards come as the president faces a tough reelection battle this fall with former President Donald Trump, a persistent critic of electric vehicles and high fuel economy standards. Trump promised on this year’s campaign to end policies he often labels as mandatory for electric vehicles. Such comments have helped turn zero-emission electric vehicles – until now a difficult and unprofitable business for most domestic car companies – into a polarizing political issue.
Biden’s new fuel economy standards are still ambitious. But its departure from the initial CAFE proposal issued last year represents a compromise with automakers who say they are committed to reducing emissions but need more time to do so.
Under the final rules, automakers’ fleets must achieve an average fuel economy of 53.5 miles per gallon by 2032, instead of the initially proposed standard of 57.8 mpg.
“It looks like the left hand knew what the right hand was doing. That’s the kind of coordination we recommend. So that’s good and appreciated,” said John Bozzella, president of the Alliance for Automotive Innovation, praising the Biden administration for producing a This rule fits well with others issued earlier this year.
The Biden administration’s rules do not require automakers to produce or sell certain types of vehicles, although it is widely acknowledged that growth in the EV market will be crucial to complying with the new regulations.
Still, critics criticized the new standards. “This final rule is yet another policy from the Biden administration that furthers its effort to force electrification of the transportation fleet, regardless of what consumers want or need in a vehicle,” said Chet Thompson, CEO of American Fuel and Petrochemical Manufacturers, a important oil and petroleum company. gas lobby group. “It’s illegal and bad for consumers, the U.S. economy and our national security,”
The overall fleet goal for 2023 is 53.5 miles per gallon, but that number diverges significantly for cars and trucks. The target for cars is 72.3 miles per gallon, compared to 47.3 mpg for trucks, which are much more popular among U.S. consumers.
“These new standards will not only save Americans money at the pump every time they fill up, they will also decrease harmful pollution and make America less dependent on foreign oil,” U.S. Transportation Secretary Pete Buttigieg said in a press release. “These standards will save car owners more than $600 in gasoline costs over the life of their vehicles.”
The new standards officially come from the National Highway Traffic Safety Administration, which is part of the Department of Transportation.
“When Congress established the Corporate Average Fuel Economy program in the 1970s, the average vehicle got about 13 miles per gallon. Under these new standards, the average light-duty vehicle will achieve nearly four times that at 50 miles per gallon,” said NHTSA Deputy Administrator Sophie Shulman. “These new fuel economy standards will save our nation billions of dollars, help reduce our dependence on fossil fuels and make our air cleaner for everyone. Americans will enjoy the benefits of this rule for decades to come.”
Industry praises rule
Bozzella, whose organization serves as a spokesperson for all major U.S. automakers except Tesla Inc., said higher standards and fines that would likely result from NHTSA’s initial proposal “would not have produced any environmental benefits or additional fuel savings.” and would have foolishly diverted automakers’ capital from the huge investments required by the electric vehicle transition.”
also praised the rule: “GM supports the objectives of NHTSA’s final CAFE rule and its intent to significantly improve vehicle fuel economy across the entire market. The fleet efficiency measures we have taken and the foundations we have laid on the path to an all-electric future will help us meet the most stringent requirements,” spokesman Bill Grotz said in a statement.
“As we analyze the details, we believe continued coordination between the U.S. federal government and the California Air Resources Board will help ensure the auto industry can make a successful transition to electrification.”
Ford Motor Co. and Stellantis NV did not immediately comment on the new standards. Both accepted the statement from the Alliance on Automotive Innovation.
Automakers appear satisfied with the final rule. However, some industry insiders say this doesn’t go far enough to pressure companies to become more competitive when it comes to electric vehicles. China, in particular, has emerged as a world leader in an increasingly important segment.
Consumer Reports, a leading nonprofit, nonpartisan consumer group known for its auto reviews, wrote in a statement that it “does not expect this rule to provide any incremental improvements for new vehicles beyond those provided by the EPA’s new vehicle emissions standards. ”.
He added: “CR advocated for NHTSA to establish a stronger rule that would have prevented automakers from backsliding in the efficiency of their gasoline-powered vehicles as they introduced more electric vehicles, and that would have pressured automakers to warrant the EVs they make. build are as efficient as possible. The final standards are not strong enough to achieve either of these goals.”
One big decision left
The CAFE rule is the last of three major federal rules that will regulate pollution from consumer vehicles.
The other rules, which were similarly scaled back due to industry feedback, came from the Environmental Protection Agency and the Department of Energy. The EPA rule regulates allowable carbon dioxide emissions from vehicle tailpipes, and the Department of Energy rule adjusted an important calculation that impacts fuel economy scores for EVs.
EPA:Automakers have more time to ramp up EVs under final EPA emissions rules
Energy:How an Obscure Energy Calculation Could Dramatically Accelerate America’s Electric Vehicle Future
Despite issuing a less stringent EPA final rule, agency administrator Michael A. Regan still called the regulation “the strongest vehicle pollution technology standard ever finalized in United States history” during a March press conference.
Even with the CAFE rule now finalized, one more decision on vehicle emissions – and perhaps the most important – remains for Biden.
California is seeking federal approval for even stricter standards starting in 2026. Its standards, which 11 other states have already committed to copying, would effectively require a complete switch to electric vehicles in those states.
gschwab@detroitnews.com
