USDOT releases final corporate average fuel economy standards rule for model years 2022-2031

U.S. Department of Transportation Secretary Sean P. Duffy released the final rule on Monday to reset the National Highway Traffic Safety Administration (NHTSA)’s corporate average fuel economy (CAFE) standards for model years 2022-2031.

A USDOT press release contends that the Biden-Buttigieg administration “previously broke the law by setting standards that went far beyond the requirements mandated by Congress — all to artificially juice supply for electric vehicles that American consumers didn’t ask for.” USDOT and NHTSA argue that the prior administration’s standards were set so high that they created a “backdoor electric vehicle mandate.”

Calling the final rule initiative “Freedom Means Affordable Cars,” USDOT says it will:

• • “Give automakers the flexibility to manufacture cars the public wants to buy;
  • “Reduce the average cost of a new vehicle by $1,300 for American families;
  • “Save the American people $138 billion over the next five years; and
  • “Prevent more than 300,000 serious injuries and save 1,900 lives by encouraging new car sales.”

“With our commonsense standards in place, we are making the American dream affordable again, putting safer cars on the road, and investing in the American autoworker,” Duffy said in the release.

Under the new standards, yearly oil consumption is projected to be reduced by about 1.3 billion barrels in 2050 compared to 2024. In terms of miles per gallon, the release states that NHTSA estimates the new standards would achieve a fleet average fuel economy of 34.9 miles per gallon by model year 2031, up from 30.1 miles per gallon for model year 2024.

Alliance for Automotive Innovation (Auto Innovators) quickly agreed with the rule in a written statement, while noting it’s still reviewing it in detail.

“NHTSA made the right call to better align fuel economy standards with the law and current market conditions,” said John Bozzella, Auto Innovators president and CEO. “The standards finalized under the previous administration effectively required a switchover to electric vehicles that was out of step with market realities and customer demand. Today’s final rule is an appropriate course correction.

“What the industry needs is long-term regulatory stability that includes balanced, durable, and achievable fuel economy standards that continue to reduce emissions and improve fuel economy. As we’ve said before: This is the formula for preserving consumer vehicle choice and keeping the U.S. auto industry globally competitive.”

According to NHTSA Administrator Jonathan Morrison, the rule “restores integrity to the national fuel economy program, balancing vehicle affordability and energy conservation goals while improving safety on our roadways.”

“Newer cars are safer cars,” he said in the USDOT release. “By reducing vehicle prices, more American families will be able to afford newer vehicles, and sensible standards allow automakers more freedom to design and produce vehicles consumers actually want. I’m proud of our fantastic team of expert engineers, economists, and lawyers for the tremendous job they’ve done finalizing this rule.”

The rule will change classification criteria starting in model year 2030 to accurately reflect each vehicle’s intended use, flipping the current fleet mix of 70% light trucks and 30% passenger vehicles to around 70% passenger cars and 30% light trucks, according to the release.

“This reclassification will eliminate the incentive to add equipment and alter designs for classification purposes, which will result in greater availability of lower-cost vehicle options for consumers,” the release states. “Instead, automakers will develop vehicles that meet consumer wants and needs. This could improve the US automotive export market where the current vehicle classification regulations are not compatible with foreign market needs. With the current vehicle classification, manufacturers are disincentivized from making hatchbacks, wagons, and smaller footprint vehicles in general.”

USDOT and NHTSA say the rule will also eliminate the CAFE credit trading program starting in model year 2028.

“Eliminating the credit trading program restores fairness, puts all automakers on an even playing field, and ensures that manufacturers are spreading fuel-saving technologies throughout their fleets,” the release states.

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