US proposes to hike vehicle fuel economy standards by 2032

WASHINGTON, July 29 — The Biden administration yesterday proposed to hike fuel economy standards by 2032 to a fleet-wide average of 58 miles per gallon as it seeks to cut greenhouse gas emissions and reduce fuel use.

The National Highway Traffic Safety Administration (NHTSA) proposal, which covers the 2027 through 2032 model years, would boost Corporate Average Fuel Economy (CAFE) requirements by 2 per cent per year for passenger cars and 4 per cent per year for light trucks.

The agency is also proposing new fuel efficiency standards for heavy-duty pickup trucks and vans for 2030-2035 rising 10 per cent per year.

NHTSA in 2022 finalised rules for 2024-2026 requiring a fleet average of 49 mpg by 2026. The rules boosted efficiency requirements by 8 per cent in 2024 and 2025 and 10 per cent in 2026.

The agency’s new proposal would save 2032 vehicle owners about US$1,043 (RM4,749.30) per vehicle in lifetime fuel costs, while increasing average vehicle costs by US$932.

NHTSA says the rule “will encourage manufacturers producing (internal combustion engine) vehicles during the standard-setting timeframe to achieve significant fuel economy, improve energy security, and reduce harmful pollution by a large amount.”

CAFE requirements are not as stringent as an Environmental Protection Agency proposal in April to cut vehicle tailpipe emissions. NHTSA is barred by law from considering electric vehicles fuel economy in setting standards.

The EPA said its proposed 2027-2032 standards would cut emissions by 56 per cent, or 13 per cent annual average pollution cuts and result in 67 per cent of new vehicles in 2032 being electric.

NHTSA estimates its proposal would cut gasoline consumption by 88 billion gallons through 2050.

NHTSA wants comment on five alternatives, including not hiking requirements to raising them annually by 6 per cent for cars and 8 per cent for light trucks. The agency said its preferred alternative “comes at a cost we believe the market can bear without creating consumer acceptance or sales issues.”

The Alliance for Automotive Innovation representing General Motors, Toyota Motor, Volkswagen and others, asked EPA to soften its emissions proposal saying it is “neither reasonable nor achievable,” while Tesla said EPA should make it tougher. The alliance yesterday said it was reviewing NHTSA’s proposal. — Reuters