Strictest fuel economy standards to date
The announcement marks the most stringent cost savings and fuel efficiency standards to date. The goal is to increase fuel efficiency 8% annually for automakers’ 2024-2025 model year vehicles and 10% annually for 2026 models—or face fines.
Automakers are also required to increase the fleet-wide average by 10 miles per gallon for 2026 compared with 2021.
Back on track for efficiency
Both proposals contrast with the Trump administration’s rule requiring a 1.5% annual increase in fuel efficiency through 2026, which was itself a rollback of the Obama-era 5% annual increase.
“Today's rule means that American families will be able to drive further before they have to fill up, saving hundreds of dollars per year,” said U.S. Transportation Secretary Pete Buttigieg in the announcement. “These improvements will also make our country less vulnerable to global shifts in the price of oil, and protect communities by reducing carbon emissions by 2.5 billion metric tons.”
Better fuel economy, cleaner environment
NHTSA estimates that Americans who purchase a new vehicle in 2026 will get 33% more miles per gallon compared to vehicles sold in 2021. That means fewer fill-ups per week. And compared with the old standards, the new CAFE standards should reduce oil consumption by more than 200 billion gallons through 2050.
Another benefit NHTSA has called out that will result from these stricter standards is the reduction of greenhouse gas emissions and air pollution, which disproportionately affect low-income communities of color living near freeways and other high-traffic roadways.
Is electrification the future?
Electrification is the future in states like New York and California, which are intent on abandoning gas-powered cars completely. New York’s governor signed a law banning the sale of gas cars in the state by 2035 and medium- and heavy-duty trucks by 2045. It followed a similar law in California that would ban gas vehicle sales by 2035.
With the cost of gas being a major topic of contemporary concern, the jump to electrified vehicles may happen sooner than we think—if global supply chain issues can sort themselves out.