CR: Freezing Fuel Economy Rules will Hike Fuel Costs

The Trump administration’s plan to freeze fuel economy standards after 2020 will cost U.S. consumers more in fuel purchases than it saves them in lower new-car purchase prices, Consumer Reports says.

Federal agencies estimate that a freeze on fuel economy goals would reduce new-car operating costs by $2,340. But CR says the resulting less efficient vehicles would boost fuel consumption by $3,400.

The Trump administration also has estimated that making new cars cheaper will save some 1,000 lives per year. The rationale: Lower purchase prices will encourage drivers to trade in their older cars on new models equipped with more safety features. CR challenges that conclusion, saying its own analysis says the effect is “not statistically different from zero.”

A year ago some officials at the Environmental Protection Agency questioned the administration’s safety assumptions, claiming “erroneous” and “problematic” assumptions by the National Highway Traffic Safety Administration about changes in the vehicle mix and number of miles driven.

The White House says its regulatory freeze will lead to “safer affordable fuel efficient vehicles.” But CR argues that “the facts don’t back this rule’s Orwellian name.”