Major CAFE Hike Coming

By Staff Writer March 30, 2022
The NHTSA reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements. The NHTSA reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements.

NHTSA Deputy Administrator Steven Cliff along with Transportation Secretary Pete Buttigieg will make a “major announcement” on fuel economy standards on Friday, April 1st, according to the Department of Transportation.

They offered no other information, but speculation falls on a major CAFE hike. 

We know four things: 

  • In August 2021, the National Highway Traffic Safety Administration proposed an 8% annual hike on Corporate Average Fuel Economy (CAFE) requirements for 2024 through 2026 models.The NHTSA cited a reduction in consumer fuel costs of around $140 billion for new vehicles sold by 2030 and $470 billion by 2050. *The final NHTSA rules must be signed by March 31st to take effect in the 2024 model year that begins in September 2023. 

 

  • In December 2021, the EPA (Environmental Protection Agency) finalized its stricter vehicle emissions requirements that are parallel to the NHTSA rules. The EPA said the rules will result in 3.1 billion tons of avoided CO2 emissions through 2050.

 

  •  On Sunday, March 27th, The NHTSA confirmed that it had reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond (a big win for Tesla).

 

  • On Monday, March 28th the Biden administration asked Congress for $27.5 million to fund the NHTSA’s next phase on fuel economy regulations "for light vehicles and maximum fuel efficiency standards for medium and heavy-duty trucks which represents meaningful progress toward achieving the administration's climate agenda."

 

The Trump admin in March 2020 rolled back fuel economy standards to require only 1.5% annual increases in efficiency through 2026. The previous standards, set by the Obama admin had required a 5% annual increase.

 

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Last modified on Tuesday, 05 April 2022 12:55