Business Standard

US may slash fuel economy standards

- RYAN BEENE , ALAN LEVIN & JOHN LIPPERT 11 February

President Donald Trump’s administra­tion is looking at ways to reduce future fuel economy standards for automobile­s in a move to appease carmakers, who have asked to ease targets put in place under President Barack Obama.

The National Highway Traffic Safety Administra­tion is looking at a range of options to lower future targets, including one that would permit an average fleetwide fuel economy standard of 35.7 miles per gallon by 2026, down from the 46.6 miles per gallon under rules charted by the Obama administra­tion, according to a draft NHTSA analysis obtained by Bloomberg News.

Under that scenario, the agency projects an estimated 10 per cent of new cars and light trucks sold in 2030 would need to be hybrid or plug-in electric to comply with the standards. That compares to 61 per cent under the Obamaera proposal, according to the document.

The draft analysis, dated January 22, outlines several alternativ­es to NHTSA fuel economy standards for upcoming model years that were charted during the Obama administra­tion. Other scenarios offer less aggressive cuts to future standards. The document doesn’t specify a preferred scenario. It also indicates NHTSA may propose standards for as early as the 2021 model year and as far in the future as model year 2026, giving automakers additional time to achieve reductions in fuel consumptio­n.

The documents provide a glimpse into negotiatio­ns now going on between NHTSA, the Environmen­tal Protection Agency and California regulators over the fate of one of the Obama administra­tion’s signature environmen­tal policies.

At the end of March, NHTSA plans to begin the process of putting rules in place that will set new fuel economy rules for 2022 to 2025.

At the end of March, NHTSA plans to begin the process of putting rules in place that will set new fuel economy rules for 2022 to 2025

 ?? PHOTO: REUTERS ?? The Trump’s administra­tion wants to reduce future fuel economy standards for automobile­s
PHOTO: REUTERS The Trump’s administra­tion wants to reduce future fuel economy standards for automobile­s

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