"US Raises Truck, SUV Fuel Economy Rules, Much Less Than First Proposed"

"WASHINGTON - President Joe Biden's administration Friday finalized tighter vehicle fuel economy rules through 2031 that are significantly less stringent than first proposed, a win for the Detroit Three automakers who lobbied heavily for revised rules.

The National Highway Traffic Safety Administration said it would hike Corporate Average Fuel Economy (CAFE) requirements to about 50.4 miles per gallon by 2031 from 39.1 mpg currently. The new requirement is barely above the 49 mpg it previously required for 2026. Last year, NHTSA projected its tougher proposal would hike requirements to 58 mpg by 2032.

Heavy goods vehicles made up about 20% of the UK's transport emissions last year and decarbonising them has been a challenge even for the world's largest automakers.

The agency said the proposed new rules will ultimately slash compliance penalties from what they would have been under the original proposal. It explained the change by noting automakers said "they cannot stop manufacturing large, fuel-inefficient light trucks while also transitioning to manufacturing electric vehicles."

Environmental groups criticized the new rules as not strict enough, while automakers hailed the decision after calling the initial proposal unfeasible and warning it would result in dramatically higher vehicle prices."

David Shepardson reports for Reuters June 7, 2024.

SEE ALSO:

"U.S. Tightens Car Mileage Rules, Part of Strategy to Fight Climate Change" (New York Times)

"Biden Administration Backpedals On Tailpipe Standards" (E&E News)

"Transportation Department Issues Final Fuel Economy Rule For Model Years 2027-31" (The Hill)

"Real-World Mileage Standard For New Vehicles Rising To 38 Mpg In 2031 Under New Biden Rule" (AP)

Source: Reuters, 06/10/2024