The Biden administration proposed strict new fuel economy standards for automakers that, if passed, would boost standards to an fleet-wide average of 58 miles per gallon for cars and light-duty trucks by 2032, part of its broader effort to slash emissions from the transportation sector.
The proposed Corporate Average Fuel Economy, or CAFE standards, were published Friday by the U.S. Department of Transportation and the National Highway Traffic Safety Administration. They target a 2% per year improvement in fuel efficiency for passenger cars and a 4% per year improvement for light trucks beginning in model year 2027 and increasing through model year 2032.
For commercial pickup trucks and work vans, the proposal seeks a 10% fuel efficiency improvement per year beginning in model year 2030 and ramping up through model year 2035.
The new CAFE standards are more stringent than the previously finaized rule, which require a fleet average of 49 mpg by 2026, and are designed to "complement and align" with EPA's proposed tailpipe emissions standards, NHTSA said in a statement.
Transportation officials played up the the potential cost benefits for consumers—estimating that the combined benefits from the CAFE standards would exceed costs by more than $18 billion.
Americans would also save a combined $50 billion in fuel costs over their vehicles lifetimes, DOT said.
“Better vehicle fuel efficiency means more money in Americans’ pockets and stronger energy security for the entire nation,” U.S. Transportation Secretary Pete Buttigieg said in a statement.
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If passed, the rule would also prevent millions of tons of CO2 emissions pollution—or the equivalent of taking roughly 233 million vehicles off the road between 2022 through 2050.
The CAFE standards are now open for a 60-day public comment period.
“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," NHTSA Acting Administrator Ann Carlson said after the proposal was published. "That’s good news for everyone.”
But not everyone sees it that way.
The more stringent proposal comes as DOT seeks to align its standards with the EPA’s proposed tailpipe emissions rule, which targets 60% EV adoption by 2030 and 67% by the year 2032. Those targets have been criticized by top U.S. auto groups, including some who have said the targets are “out of whack” and unachievable.
The Alliance for Automotive Innovation, which represents nearly all major U.S. auto manufacturers besides Tesla, said in a recent filing that the EPA's proposal is a “de facto electric vehicle mandate” that would disadvantage car manufacturers and trigger “substantial” price hikes for consumers.
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Earlier this month, 25 state attorneys general blasted the administration's new vehicle emissions targets, arguing in a joint letter that the proposal is unlawful, unsustainable, and would effectively force gas-powered vehicles off the market.
Republicans also took aim at fuel economy proposal on Friday, saying would force the U.S. to rely more on China.
“At a time when prices for new vehicles are at all-time highs, NHTSA’s new fuel economy standards will add even more to the price tag, depriving people of safe, affordable vehicles," House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-WA) said in a statement.
The effort is the latest push in the Biden administration's "regulatory assault," she said, adding that it could "force Americans to buy unaffordable electric vehicles and cede our automotive future to China."