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U.S. to finalize fuel efficiency rewrite through 2026

March 31, 2020
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Court battles will leave automakers in limbo. The fate of vehicle emissions standards may rest on who wins the Nov. 3 presidential election. Democratic candidate Joe Biden vows to toughen fuel economy standards to ensure “100% of new sales for light- and medium-duty vehicles will be electrified.”

U.S. Sen. Tom Carper, D-Del., the top Democrat on the Environment and Public Works Committee, said, “This legally flawed rule means more uncertainty and more litigation. This rule will not provide regulatory relief to automakers, it will do just the opposite.”

The Obama standards, adopted in 2012, sought to raise fuel efficiency standards to an estimated 46.7 mpg by 2026, which officials had said would save motorists $1.7 trillion in fuel costs and eliminate 2 billion metric tons of carbon dioxide over the life of the vehicles but cost the auto industry about $200 billion over 13 years.

Carper said earlier this year the draft proposal would result in a 40.5 mpg average for the combined fleet by 2030.

A draft final proposal circulated by the administration this year proposed to increase requirements by about 1.5 percent per year. It is not clear what additional compliance flexibilities the administration will include.

John Bozzella, who heads an automotive trade representing nearly all major automakers including General Motors, Volkswagen Group and Toyota Motor Corp., said automakers would review the final rule when published.

“A lot of the planning for these model years has already been done,” Bozzella said, adding policymakers should now look at longer-term requirements beyond 2026.

Ken Kimmell, president of the Union of Concerned Scientists, called the expected final regulation “a massive transfer of tens of billions of dollars from drivers to oil companies, as consumers will spend more on gasoline due to less efficient cars.” 

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