National Highway Traffic Safety Administration Finalizes Next Set of Corporate Average Fuel Economy Standards
On Friday, June 7, 2024, the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) finalized its corporate average fuel economy (CAFE) standards for model years (MY) 2027 through 2032 passenger cars and light-duty trucks. The standards will push automakers to increase fleetwide fuel economy by approximately 2% each year, which is less aggressive than the 4% increase for light-duty trucks considered in NHTSA’s July 2023 proposed rule. Taken together, NHTSA predicts that the fleetwide average fuel economy across the industry will reach 50.4 miles per gallon by 2031, while increased upfront vehicle costs would offset lifetime fuel savings over time.
The Newest Phase of EPA’s Greenhouse Gas Emissions Standards: Phase 3
On March 29, 2024, the U.S. Environmental Protection Agency (EPA) announced its most recent national greenhouse gas (GHG) pollution standards for heavy-duty (HD) vehicles, including HD vocational vehicles and tractors. The rule establishes new CO2 emission standards for model year (MY) 2032 and later HD vehicles, with more stringent CO2 standards phasing in as early as MY 2027 for certain vehicle categories.
