EPA Proposes to Retain Tough Fuel Economy Formula
The U.S. Environmental Protection Agency favors retaining without change rules set in 2012 for determining fuel economy averages through 2025.
#regulations #economics
The U.S. Environmental Protection Agency favors retaining without change rules set in 2012 for determining fuel economy averages through 2025.
But the agency agrees that the footprint-based formula, which imposes targets based on a vehicle’s size rather than weight, should be applied to updated sales projections. Those forecasts predict a far heavier demand for trucks than forecasters expected when the targets were set in 2012.
The updated sales projections would lower the previous fleet average of 54.5 mpg to 51.4 mpg, according to the agency’s calculations. Retaining the footprint-based formula enables carmakers to continue to sell a wide range of vehicles, each group with its own fuel economy goals.
EPA notes that the auto industry surpassed calculated fuel economy levels for the 2012-2015 model years—with the biggest recent gains coming from large SUVs and pickup trucks.
The agency contends that automakers have cheaper and more powerful technologies with which to achieve tougher fuel economy targets. Applying those options would allow manufacturers to meet 2025 standards with fleets that contain no more than 9% hybrids and 3% electric vehicles, EPA calculates. It says the cost of achieving the standards will be lower than originally estimated.
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