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Biden Administration Proposes New Fuel-Economy Standards in Continuing EV Push

Employees inspect an assembly line of a Ford manufacturing plant in Chongqing municipality, April 20, 2012. (Stringer/Reuters)

The National Highway Traffic Safety Administration proposed stricter fuel economy standards Friday to hasten the transition to electric vehicles.

Automakers will be required to improve the average mileage of passenger cars sold between 2027 and 2032 by 2 percent a year, and the average mileage of light trucks by 4 percent a year. In order to achieve the estimated average fuel economy of 58 miles per gallon by 2032, roughly two-thirds of new cars automakers sell by then would have to be electric, the New York Times reported. The Transportation Department estimates that its proposal will avert more than 900 million tons of carbon dioxide emissions.

The Times reported that while the National Highway Traffic Safety Administration is barred by law from taking electric vehicles into account when setting fuel economy standards, automakers are free to sell electric vehicles to comply.

The Biden administration is thus attacking new auto sales from two separate angles. In April, the administration announced proposed EPA rules which would cut emissions in passenger cars and pickups by half from 2026 to 2032.

Automakers are struggling with the pace of transition to electric vehicles. The infrastructure to support such a drastic shift in such a short amount of time is not there. The cost of rare minerals needed for electric vehicle batteries remains high and there are also concerns surrounding the availability of charging stations. Layoffs have been instituted at Ford and other auto companies.

Republicans quickly opposed the proposed fuel economy rules, just as they have the emissions standards, with Senator Ted Cruz (R., Texas) calling the Department of Transportation rules part of the continuing “war on affordable gas-powered cars and trucks.”

“This de facto EV mandate will dramatically raise car prices, weaken energy security, and is likely contrary to the law,” said Cruz to Politico.

Several consumer groups have warned that electric vehicles are less affordable, though the Transportation Department did note that those who buy oil and gas-powered cars under the new rules will save money on fuel.

“Better vehicle fuel efficiency means more money in Americans’ pockets and stronger energy security for the entire nation,” Transportation Secretary Pete Buttigieg said.

Some legal experts argued that in approaching this from two angles, the administration is recognizing one set of proposed rules might be struck down in court.

“To a certain extent this is belt and suspenders,” said Michael Gerrard, an environmental law professor at Columbia Law School, to the Times. “The fact that we have two different rules from two different agencies under two different statutes increases the odds that at least one will survive.”

Arizona’s Republican legislators are one group who has already filed comment against the emissions standards and is considering legal action if the EPA finalizes them.

“These proposed rules will have dire consequences for everyday people here in Arizona, risking our economy, our power grid, and our national security,” Arizona senate president Warren Petersen told National Review last month. “We are stepping into the gap to hold the line against federal overreach.”

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