U.S. DOT and EPA Put Safety and American Families First with Final Rule on Fuel Economy Standards |
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National Highway Traffic Safety Administration
31 March 2020
The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) today released the final Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule setting corporate average fuel economy (CAFE) and CO2 emissions standards for model years 2021-2026 passenger cars and light trucks.
“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,” said U.S. Secretary of Transportation Elaine L. Chao. “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.”
“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.”
The final rule will increase stringency of CAFE and CO2 emissions standards by 1.5% each year through model year 2026, as compared with the standards issued in 2012, which would have required about 5% annual increases. This is a change from the proposal issued in 2018. The majority of automakers are not meeting the 2012 standard without resorting to the use of credits. The final rule can be found at: NHTSA.gov/SAFE.
NHTSA is required by Federal law to set fuel economy standards at the maximum feasible level for both passenger cars and light trucks, for every model year. If NHTSA determines that standards previously set are no longer maximum feasible, NHTSA can amend them. In determining what levels of CAFE standards would be maximum feasible, the law directs NHTSA to consider four specific factors: technological feasibility; economic practicability; the effect of other motor vehicle standards of the Government on fuel economy; and the Nation’s need to conserve energy.
On April 2, 2018, the EPA issued the Mid-Term Evaluation Final Determination that found that the MY 2022-2025 CO2 emissions standards are not appropriate and should be revised. For nearly two years, the agencies worked together to extensively analyze current automotive and fuel technologies, reviewed economic conditions and projections, and consulted with other Federal agency partners to ensure the most reliable and accurate analysis possible. The agencies also evaluated more than 750,000 public comments and held three public meetings.
The SAFE Vehicles Rule reflects the realities of today’s markets, including substantially lower oil prices than in the original 2012 projection, significant increases in U.S. oil production, and growing consumer demand for larger vehicles.
The SAFE Vehicles Rule increases U.S. competitiveness by reducing regulatory costs by as much as $100 billion through model year 2029. According to NHTSA/EPA projections, it will also boost new vehicle sales through model year 2029 by up to 2.7 million vehicles. At a time of sudden economic uncertainty, the SAFE Vehicles Rule provides help for millions of American workers and thousands of businesses in the auto sector and related industries by cutting costs and increasing sales of safe new vehicles.
By reducing the average price of a new vehicle by about $1,000, this right-sized rule will make it easier for Americans to afford to buy newer, cleaner, and safer vehicles.