US to finalize sharply lower vehicle fuel economy standards
GM•The Transportation Department will finalize vehicle fuel economy standards through 2031, setting a fleetwide average of 34.5 miles per gallon, down from 50.4 under Biden-era rules. The department estimated the change would lower average new-vehicle costs by $930 while increasing fuel use by about 100 billion gallons through 2050.
1. Standards set to fall
The Transportation Department will finalize sharply lower vehicle fuel economy standards through 2031, reversing the Biden administration’s push for higher efficiency requirements, officials said. President Donald Trump said he had approved the new standards, and Transportation Secretary Sean Duffy said they would be unveiled Monday.
2. Costs and fuel use
The department proposed a fleetwide average of 34.5 miles per gallon by 2031, compared with 50.4 miles per gallon under Biden. It estimated the change would reduce average new-vehicle costs by $930, while increasing fuel consumption by around 100 billion gallons through 2050, fuel spending by $185 billion and carbon dioxide emissions by about 5%.
3. Different policy approaches
Biden’s rules raised required fuel efficiency by 8% annually for model years 2024 and 2025, 10% for 2026, and 2% annually from 2027 to 2031. The Trump administration proposed in December revising down the 2022 model-year standard and then raising it by 0.25% to 0.5% annually through 2031.
