The U.S. Department of Transportation’s National Highway Traffic Safety Administration and the U.S. Environmental Protection Agency announced Tuesday they are lowering carbon dioxide (CO2) emissions and fuel economy standards for passenger cars and light trucks.
Emphasizing that the new standards would make cars and trucks safer and more affordable, Transportation Secretary Elaine Chao said the new standards reflect President Trump’s promise to “right” fuel economy and greenhouse gas emissions standards.
“This rule reflects the Department’s #1 priority—safety—by making newer, safer, cleaner vehicles more accessible for Americans who are, on average, driving 12-year-old cars. By making newer, safer, and cleaner vehicles more accessible for American families, more lives will be saved, and more jobs will be created,” Chao said. “Today, President Trump is keeping his promise to autoworkers made three years ago that he would reinvigorate American auto manufacturing by updating costly, increasingly unachievable fuel economy and vehicle CO2 emissions standards, and that is what the Safer Affordable Fuel-Efficient Vehicles Rule accomplishes.”
The rule will increase corporate average fuel economy (CAFE) and CO2 emissions by 1.5 percent each year for model years 2021 through 2026. Previous standards, released in 2012, would have required 5 percent increases on those standards each year.
“We are delivering on President Trump’s promise to correct the current fuel economy and greenhouse gas emissions standards,” said EPA Administrator Andrew Wheeler. “Our final rule puts in place a sensible one national program that strikes the right regulatory balance that protects our environment and sets reasonable targets for the auto industry. This rule supports our economy and the safety of American families.”
In April 2018, the EPA issued a Midterm Evaluation Final Determination that found that the standards passed in 2012 were not appropriate and should be revised. Working with the DOT, the EPA analyzed current automotive and fuel technologies to come up with new standards. After reviewing more than 750,000 public comments and holding three public meetings, the agencies came to the new determination.
According to the agencies, the new standards make American vehicles more competitive and will boost new vehicle sales through model year 2029 by up to 2.7 million vehicles. The reduction in standards, the agencies said, would reduce regulatory costs by as much as $100 billion, and strip $1,000 off the cost of most new cars, making them more affordable for the average American family.
The average cost of an automobile in America was $36, 843 in 2019, according to Kelley Blue Book, up 2 percent from 2018, a difference of $732.