U.S. Might Revise Fuel Efficiency Standards Sooner
The fuel efficiency requirements for the U.S. may be revised in 2021, one year earlier than previously scheduled and additionally lead to the adoption of lower standards through 2025.
This was revealed in a notice released by the U.S. Transportation Department on Tuesday.
President Donald Trump had ordered a review of the U.S. fuel-efficiency standards in March from the model year 2022 to 2025, which had been established under the Obama administration.
On the notice, U.S. regulators opined that they were in the process of preparing a new statement on environmental impact, and will likely freeze the standards of 2021 through 2025, instead of raising the standards every year.
The Alliance of Automobile Manufacturers, which is a trade group that represents Volkswagen AG, Toyota Motor Corp., General Motors among others stated that the environmental review should happen no matter what the future standards will be.
In 2011, the Obama administration had negotiated with the automakers, for aiming to double the average fleet-wide fuel efficiency of vehicles to reach around 80 km(50 miles) per gallon by the year 2025.
The administration had said that the change in rules would have saved the motorists up to $1.7 trillion in the fuel costs but would have cost the auto industry around $200 billion till 2025.
As per the deal that had been undertaken earlier, the rules for the 2022-2025 model years were to be finalized by April 2018. Trump has reopened the review of the rules based on the automakers request that spoke against the feasibility of the rules.
Automakers were recently invited to the White House for attending a meeting with the officials regarding the review.
As per NHTSA, they’ll be considering multiple options, such as including the continuation of 2021 requirements through 2025 instead of yearly increases.
As per the current rules, the average fleet wide fuel economy should be close to 41 miles a gallon in the year 2021 and increase to around 50 miles per gallon in 2025.
The agency might also provide the companies with some respite in the initial years as well.
But how this decision affects the customers remains to be seen.