Overview

The Environmental Protection Agency (EPA) recently proposed strict limits on tailpipe pollution, and now the National Highway Traffic Safety Administration (NHTSA) has outlined fuel economy standards for new cars and trucks. These standards would require an average fleet fuel economy of 58 mpg by the 2032 model year.

Fuel Economy Standards

NHTSA’s proposed standards for the 2027-32 model years would require a 2 percent per year improvement in fuel efficiency for cars and a 4 percent per year improvement for light trucks. Commercial pickups and work vans would need to improve by 10 percent per year starting in the 2030 model year.

In comparison, the standards finalized by NHTSA last year called for an 8 percent per year increase in fuel efficiency for cars and light trucks in the 2024-2025 model years, and a 10 percent increase for 2026.

Potential Impact

If these proposed standards are finalized, NHTSA estimates that consumers could save over $50 billion on fuel over the lifetime of their vehicles. Additionally, U.S. gasoline consumption could be reduced by more than 88 billion gallons through 2050, and over 900 million tons of carbon dioxide emissions could be prevented.

Industry Response

The Alliance for Automotive Innovation, a trade association representing various industry players, has called for a single national standard that aligns NHTSA’s fuel economy standards with the EPA’s greenhouse gas emissions rules. The alliance argues that the EPA’s proposed rule is too fast and gives China an advantage.

Future Developments

The Energy Department is expected to propose an update to the calculation that determines the fuel economy of electric vehicles. This update could affect NHTSA’s fuel economy standards and potentially result in higher penalties for automakers.