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The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has issued new vehicle fuel economy standards projected to save Americans over $23 billion in fuel costs and reduce pollution. These standards align with ongoing energy security efforts dating back to the 1970s, when vehicles averaged about 13 miles per gallon.
Under the new rule, fuel economy for passenger cars will increase by 2% annually for model years 2027-2031, while light trucks will see a similar increase for model years 2029-2031. By model year 2031, the average light-duty vehicle is expected to achieve approximately 50.4 miles per gallon, saving owners more than $600 in fuel costs over their vehicles' lifetimes.
For heavy-duty pickup trucks and vans, fuel efficiency will rise by 10% annually for model years 2030-2032 and by 8% annually for model years 2033-2035. This will result in a fleetwide average of around 35 miles per gallon by model year 2035, providing savings of over $700 in fuel costs per vehicle lifetime.
"Not only will these new standards save Americans money at the pump every time they fill up, they will also decrease harmful pollution and make America less reliant on foreign oil," said U.S. Transportation Secretary Pete Buttigieg. "These standards will save car owners more than $600 in gasoline costs over the lifetime of their vehicle."
The updated standards are anticipated to save nearly 70 billion gallons of gasoline through 2050 and prevent over 710 million metric tons of carbon dioxide emissions within the same period.
"President Biden’s economic and climate agenda has catalyzed an American clean energy and manufacturing boom," stated President Biden’s National Climate Advisor Ali Zaidi. "From day one, the President has centered America’s workers, and unions that built our middle class, in this transformative agenda... These fuel economy standards... deliver on the Biden-Harris Administration’s promise to build on this momentum and continue to spur job creation."
"When Congress established the Corporate Average Fuel Economy program in the 1970s, the average vehicle got about 13 miles to the gallon," noted NHTSA Deputy Administrator Sophie Shulman. "Under these new standards, the average light-duty vehicle will achieve nearly four times that at 50 miles per gallon... Americans will enjoy the benefits of this rule for decades to come."
In developing this final rule, NHTSA engaged with various stakeholders including consumers, unions, automakers, states, and environmental advocates.
NHTSA's new standards complement those set by the Environmental Protection Agency (EPA) for similar vehicle fleets. Both agencies collaborated closely to maximize effectiveness while minimizing compliance costs.
The final rule aligns with Congress' directive to conserve fuel and promote American energy independence while providing flexibility to industry on achieving targets. Although NHTSA does not account for electric or alternative fuels when setting these standards, manufacturers may utilize all available technologies—including advanced internal combustion engines, hybrid technologies, and electric vehicles—for compliance.
Passenger cars typically include sedans and two-wheel drive crossovers/SUVs; light trucks generally encompass four-wheel drive SUVs, pickups, minivans; heavy-duty pickup trucks and vans usually refer to Class 2b/3 work trucks and related vehicles.
For additional information, visit NHTSA's Corporate Average Fuel Economy page.
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