The Biden administration has introduced new legislation to limit the popularity of gasoline-powered cars. It is the goal of the United States Department of Transportation (DOT) and the National Highway Traffic Safety Administration (NHTSA) to minimize the country’s reliance on fossil fuel energy sources and to increase energy conservation by implementing new fuel economy standards.
The plan specifies a schedule for annual increases in fuel efficiency requirements. Proposed increases in the standards are 2% annually for autos and 4% annually for light vehicles. The annual rate of increase would be 10% for HDPUVs (heavy-duty pickup trucks and vans).
“Better vehicle fuel efficiency means more money in Americans’ pockets and stronger energy security for the entire nation,” said U.S. Transportation Secretary Pete Buttigieg.
According to the NHTSA, the proposed rules would require an average fleet-wide mileage of about 58 mpg for passenger automobiles and light trucks by the year 2032. By 2038, the average fuel economy of the world’s HDPUV fleet is projected to reach at 2.6 gallons per 100 miles.
Over the course of their ownership, the average vehicle or light truck should save $1,043 in fuel costs thanks to the regulations, while HDPUVs will save $439. The goal of the Biden administration, which this action supports, is to minimize emissions of greenhouse gases.
It is the stated policy of the current administration that by 2030, half of all newly purchased vehicles in the United States will be electric.
The latest idea is likely to be met with resistance from automakers and other industry groups who believe the shift to EVs should be market-driven. The Biden administration, on the other hand, insists that government intervention is required to hasten the transition to EVs and achieve climate targets.
Before the proposal can be finalized, it will be reviewed. During the public comment period, the NHTSA will hold a virtual public hearing to collect opinion on the proposal. Consumers may be affected by the idea as well.