The Biden administration on Monday raised fuel-efficiency standards for passenger cars and light duty trucks, saying the new standards will reduce pollution and save consumers billions of dollars at the gas pump.
Auto makers must meet a fleetwide average of 55 miles a gallon for cars and light trucks by model year 2026, up from the 43 mpg standard set by the Trump administration for that year. The fleetwide mileage standard for the current 2021 model year is 40 mpg.
The new rules will save U.S. drivers between $210 billion and $420 billion in fuel costs through 2050, the Environmental Protection Agency said, based on government estimates of future fuel prices. Even after factoring in higher purchase prices for cleaner vehicles, each buyer would still save about $1,000 over the lifetime of their vehicle from model year 2026 on, the EPA said.
The EPA said the higher standards will curb pollution from the transportation sector, which it says is the nation’s No. 1 source of greenhouse gas emissions.
“We are setting robust and rigorous standards that will aggressively reduce the pollution that is harming people and our planet—and save families money at the same time,” EPA Administrator Michael Regan said, flanked by electric vehicles and a charging station during a signing ceremony outside agency headquarters.