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U.S. might revise fuel efficiency standards for 2021 model year

July 25, 2017 0 Comments

On Tuesday the U.S. Transportation Department said that it might revise the fuel auto-efficiency requirements beginning with the 2021 model year rather than the 2020 model year as previously disclosed.

In March, President Donald Trump ordered a review of the fuel-efficiency standards for 2022 through 2025 established under the Obama administration.

A notice published on Tuesday by U.S. regulators announced that they are preparing a “new environmental impact statement” and that they might choose to freeze the standards in 2021 through 2025 instead of increasing them every year.

The Alliance of Automobile Manufacturers, a trade group representing General Motor Co., Volkswagen AG, Toyota Motor Corp., and more, said in a statement that the review “must happen regardless of what future standards are.”

Additionally, the AAM said that “facts need to drive public policy, including data on consumer sales, gas prices and costs of technology” when it comes to determining final standards.

The rules from the Obama administration, negotiated in 2011, aimed to double average fleet-wide fuel efficiency up to 50 miles per gallon by 2025. Under these, the 2022-2025 model rules had to be finalized by April 2018.

However, Trump reopened a review of the Obama administration’s rules when automakers complained that the previous administration hadn’t done a proper review to make sure the rules were feasible.

Under federal law, the National Highway Traffic Safety Administration has to set “maximum feasible” Corporate Average Fuel Economy requirements, while also taking “technological feasibility, economic practicability… and the need of the United States to conserve energy” into account.

A notice from the NHTSA on Tuesday said it will “consider a number of options” – which includes keeping the requirements from 2021 through 2025 steady instead of increasing them each year.

Under the current rules, the fleetwide average fuel economy expected to be around 41 miles per gallon in 2021. The targeted average for 2025 is nearly 50 miles per gallon.

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