WASHINGTON (AP) — The Biden administration has unveiled new federal rules that mandate that new vehicles sold in the U.S. must average about 38 miles per gallon in 2031 in real-world driving, representing a significant increase from the current 29 mpg. The new regulations, released by the National Highway Traffic Safety Administration, will incrementally raise fuel economy standards for passenger cars and light trucks between 2027 and 2031.
According to the final rule, passenger cars will need to increase fuel economy by 2% per year from 2027 to 2031, while SUVs and light trucks will need to do the same from 2029 to 2031. These figures came in below a proposed regulation released the previous year, with administration officials citing the need to provide flexibility to the auto industry to concentrate on electric vehicles.
President Joe Biden has set a goal for electric vehicles to comprise half of all new vehicles sold in the U.S. by 2030, in an effort to combat climate change. Gasoline-powered vehicles are currently the largest source of greenhouse gas emissions in the country. The anticipated 50% increase in EV sales by 2030 would be a substantial rise from the 7.6% share they held in new vehicle sales last year.
Despite Biden’s push for EVs, he requires support from both the auto industry and political backing from auto workers, a crucial voting bloc, as he enters reelection season. The United Auto Workers union has backed Biden but seeks to ensure that the transition to electric vehicles does not lead to job losses and that workers in the industry are fairly compensated for building EVs and batteries.
Opponents of Biden’s EV push, including former President Donald Trump and other Republicans, have criticized the initiative as detrimental to consumers and a display of government overreach. The new regulations are estimated to save nearly 70 billion gallons of gasoline and reduce carbon dioxide emissions by over 710 million metric tons by 2050.
Transportation Secretary Pete Buttigieg highlighted that the new standards will save American consumers money at the pump, decrease harmful pollution, and reduce the country’s reliance on foreign oil. The Environmental Protection Agency also introduced new rules for tailpipe emissions, aligning with the National Highway Traffic Safety Administration to make the regulations more stringent.
The Alliance for Automotive Innovation, a prominent industry group, commended the Biden administration for implementing fuel standards that work in conjunction with recent federal tailpipe rules. However, environmental groups like the Center for Biological Diversity criticized the new rules as insufficient, arguing that they fail to push automakers to maximize vehicle efficiency and reduce emissions effectively. These organizations believe that current fuel economy standards may become less relevant as electric vehicle sales continue to grow.