The United States is poised to roll back its fuel economy standards, reversing a Biden-era policy that aimed to accelerate the adoption of electric vehicles.
Former President Donald Trump unveiled the proposal at the White House, asserting that the previous standards were unattainable and increased costs for consumers.
“They were horrible what they were doing to costs – and actually making the cars much worse,” Trump stated.
Ford CEO Jim Farley, present at the announcement, lauded the change as a “victory of common sense.” Conversely, environmental advocacy groups criticized the move as a setback for the automotive industry and public health.
Transportation remains the leading source of greenhouse gas emissions in the US, accounting for over 28% of the total in 2022, according to the Department of Energy.
The prior policy mandated that car manufacturers achieve an average fuel efficiency of approximately 50 miles per US gallon across their fleet by the 2031 model year, a significant increase from the current industry average of about 27 miles per US gallon.
For passenger vehicles, this translated to an efficiency increase of roughly 2% annually.
Instead, the National Highway Traffic Safety Administration has proposed less stringent standards, aiming for a fuel efficiency of about 34.5 miles per US gallon by the 2031 model year.
The administration also intends to terminate a program allowing automakers to purchase credits from rivals with higher fuel efficiency, such as Tesla, to meet compliance requirements – a policy deemed to have “artificially propped up the EV industry.”
Katherine Garcia, Director of the Sierra Club’s Clean Transportation for All campaign, cautioned that the revisions would result in increased greenhouse gas emissions and higher fuel expenses for families.
“This rollback would move the auto industry backwards, keeping polluting cars on our roads for years to come and threatening the health of millions of Americans, particularly children and the elderly,” she stated.
However, Ford’s Jim Farley defended the new regulations as “aligned with customer demand,” calling the change “the right move for a lot of reasons.”
The Biden administration, when announcing the initial plan last year, emphasized its goal to reduce reliance on foreign oil, lower fuel costs for car owners, and combat pollution.
That plan was projected to prevent over 700 million metric tons of carbon dioxide emissions by 2050.
Automakers had the flexibility to utilize any technology to meet the new standard.
Nevertheless, achieving the target was largely expected to depend on increased sales of electric vehicles.
This prompted pushback from some automakers, who had already begun reducing investments in electric vehicles due to uncertain market demand.
The “Big Three” US automakers – Stellantis, General Motors, and Ford – renowned for sales of larger vehicles such as trucks and SUVs, possess the least fuel-efficient fleets in the industry, according to the Environmental Protection Agency.
General Motors CEO Mary Barra stated at a New York Times event on Wednesday that if electric vehicle sales did not increase sufficiently, GM feared it would be necessary to shut down factories producing less efficient vehicles to comply with the Biden-era rules.
The plan remains subject to a formal rule-making process.
Trump indicated his administration anticipates the change will help consumers save approximately $1,000 on the cost of a vehicle. The Biden administration had estimated its rules would save car owners roughly $600 on fuel over the vehicle’s lifespan.
Kathy Harris, director of clean vehicles at the Natural Resources Defense Council, stated that the revised plan would only benefit the oil industry.
“Gutting fuel economy under the pretense of safety and affordability is a cruel joke for American drivers,” she said.
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