New Rule Requires 65 MPG by 2031

The Biden administration announced new vehicle fuel mileage standards on Friday, aiming to transform the American auto market towards electric vehicles (E.V.s). By 2031, automakers must achieve an average of 65 miles per gallon across all models, reports The NY Times.

Pushing for Electric Vehicles

This new regulation, alongside other measures, is part of a broader strategy to reduce pollution from vehicles. The Environmental Protection Agency (E.P.A.) has also imposed strict tailpipe pollution limits, targeting that most new cars and light trucks sold in the U.S. be all-electric or hybrids by 2032.

Supporting E.V. Adoption

The 2022 Inflation Reduction Act supports this push by offering tax credits for new and used E.V.s, as well as incentives for charging infrastructure and grants for manufacturers. The administration aims to phase out internal combustion engines to mitigate global warming.

Opposition from Republicans

Despite these efforts, there is significant pushback from Republicans, including former President Donald Trump, who argue that these policies limit consumer choice. Trump has criticized E.V.s, although he recently praised Tesla‘s Elon Musk, acknowledging some people might prefer electric cars.

Impact on Automakers

The new standards require passenger vehicles to average 65 miles per gallon by 2031, up from 48.7 mpg today. Light trucks must reach 45 mpg, and heavy pickup trucks and delivery vans need to achieve 35 mpg by 3035. Analysts suggest automakers must boost their electric and hybrid vehicle sales while improving the fuel efficiency of conventional cars.

Legal and Economic Implications

Transportation Secretary Pete Buttigieg claims these standards will save car owners money on fuel and reduce reliance on foreign oil. However, legal challenges are expected. Republican attorneys general from 25 states have already sued the E.P.A. over tailpipe regulations, and further litigation is anticipated against the mileage standards.

Growing Demand for E.V.s

While demand for E.V.s has slowed, it remains on the rise. Last year, 1.2 million Americans bought electric vehicles, representing 7.6% of new car sales. This number is expected to increase to 10% this year, partly due to falling prices of electric cars. Globally, E.V.s accounted for 18% of car sales in 2023, up from 2% in 2018.

EVXL’s Take

The Biden administration’s new mileage standards represent a significant step towards a greener automotive future. While there is opposition, the shift towards electric vehicles is crucial for reducing emissions and combating climate change. As prices drop and technology improves, E.V.s are becoming a viable option for more consumers, which bodes well for the environment and the future of the auto industry.