On Friday, the Biden administration unveiled a proposal for new fuel economy standards that, while promising cost savings at the gas pump, will likely lead to an increase in vehicle prices for American consumers.
The proposal, issued by the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA), includes enhanced Corporate Average Fuel Economy (CAFE) standards.
Starting in 2027, these rules necessitate passenger cars and light trucks to bolster fuel efficiency by 2% and 4% respectively. Beginning in 2030, pickup trucks and work vans must improve fuel efficiency by 10% each year.
The administration predicts that by 2032, the average U.S. fleet fuel economy could reach an impressive 58 miles per gallon. To put this in perspective, the Environmental Protection Agency (EPA) estimated the average fuel economy for model year 2022 cars at 26.4 miles per gallon.
The proposed guidelines imply that automakers must double fuel efficiency in less than a decade or face hefty penalties.
“Better vehicle fuel efficiency means more money in Americans’ pockets and stronger energy security for the entire nation,” declared Transportation Secretary Pete Buttigieg.
The NHTSA, together with the Department of Transportation, argued that the new CAFE standards could save consumers more than $50 billion on fuel over vehicles’ lifetimes and lessen gasoline consumption by 88 billion gallons through 2050.
They also estimate that these standards will reduce carbon emissions by over 900 million tons through 2050, which they equate to removing over 233 million vehicles from the road.
“The new standards we’re proposing today would advance our energy security, reduce harmful emissions, and save families and business owners money at the pump,” stated NHTSA Acting Administrator Ann Carlson. “That’s good news for everyone.”
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Yet, the proposal is likely to encounter significant resistance from Republican lawmakers, the fossil fuel industry, and automakers.
On July 17, David Strickland, General Motors Vice President of Global Regulatory Affairs, shared data with White House officials indicating that the CAFE standards could impose up to $300 billion in costs on companies. These additional costs include an account for government fines for failing to meet fuel efficiency requirements.
In March 2022, the NHTSA confirmed its proposed CAFE standards for model years 2024-2026, requiring an industry-wide fleet average of about 49 miles per gallon by 2026.
The agency acknowledged that these standards would impose an estimated $236.5 billion burden on automakers and potentially elevate car prices by more than $1,000.
The latest proposal aligns with the EPA’s most aggressive tailpipe emissions standards, introduced three months prior, which predicted that 67% of new sedan, crossover, SUV, and light truck purchases would be electric by 2032.
Republican Senator Ted Cruz has expressed staunch opposition to these standards. On May 1, he penned a letter to Acting Administrator Carlson, advising her against following the EPA’s lead in suppressing gas-powered vehicles.
The letter warned Carlson to “reject the EPA’s economically destructive regulatory overreach.”
“Based on your record, we are deeply concerned that the National Highway Traffic Safety Administration will follow the EPA’s lead and propose similarly radical vehicle fuel economy standards that run contrary to the law, diminish vehicle choice, impose higher costs on American families, and undermine our national and energy security all while benefiting China,” he wrote.
Cruz exploded over Friday’s proposal, dubbing it a “de facto EV mandate” if implemented.
In a statement to Fox News Digital, Cruz said, “Today, the Biden administration escalated their war on affordable gas-powered cars and trucks, taking a page from California’s ‘Green New Deal’ playbook.”
“Commerce Republicans warned the failed radical NHTSA nominee Ann Carlson not to take this step in a May 1st letter because American families should be free to purchase any vehicle they want,” he added.
“This de facto EV mandate will dramatically raise car prices, weaken energy security, and is likely contrary to the law. I will continue to fight this Bidenomic policy.” he said.
Despite the White House withdrawing Carlson’s nomination on May 30 to lead NHTSA after undergoing strong opposition from Cruz and other lawmakers, Acting Administrator Carlson remains in her position.
It is clear as long as Biden remains in office, every government agency will be on the green train of death to entire industries at the expense of the American taxpayer.
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