New Biden rule to increase real-world mileage standard for new vehicles to 38 mpg by 2031

WASHINGTON — The Biden administration has introduced new federal rules that will require new vehicles sold in the U.S. to average around 38 miles per gallon of gasoline by 2031 in real-world driving conditions, a significant increase from the current average of about 29 mpg.

Under the finalized rule, passenger cars will need to increase fuel economy by 2% annually for model years 2027 to 2031, while SUVs and light trucks will see a 2% yearly increase for model years 2029 to 2031. These requirements, set by the National Highway Traffic Safety Administration, are slightly less strict than the initial proposal, providing automakers with more flexibility to focus on electric vehicles.

President Biden aims to have half of all new vehicles sold in the U.S. be electric by 2030 as part of the administration’s efforts to combat climate change. With gasoline-powered vehicles currently accounting for the largest source of U.S. greenhouse gas emissions, this shift towards electrification is crucial for reducing the nation’s carbon footprint.

While promoting electric vehicles, Biden also seeks cooperation from the auto industry and support from auto workers, emphasizing the importance of a smooth transition to electric vehicles without causing job losses. The move towards EVs has faced opposition from former President Donald Trump and other Republicans, who view the administration’s efforts as government overreach.

The new fuel economy standards are projected to save nearly 70 billion gallons of gasoline and prevent over 710 million metric tons of carbon dioxide emissions by 2050. Transportation Secretary Pete Buttigieg highlighted that these standards will not only save consumers money at the pump, but also reduce harmful pollution and decrease America’s reliance on foreign oil.

The Alliance for Automotive Innovation expressed that the new CAFE (Corporate Average Fuel Economy) rule aligns with recent federal tailpipe emission standards, emphasizing the evolving landscape of electrification within the automotive industry. As the world transitions towards electric vehicles, discussions about the necessity of CAFE standards in the future may arise.

While some environmental groups have criticized the new rules for not being ambitious enough, the highway safety agency defended the standards, pointing out the 10% yearly improvement required for commercial pickup trucks and work vans. Automakers will have the flexibility to meet these standards through a combination of electric vehicles, hybrids, and efficiency enhancements in traditional gas and diesel vehicles, reflecting the industry’s evolving focus on sustainability and innovation.