Fuel Standards Cut Climate Pollution and Save Drivers Money

With an estimated 292 million-plus cars and trucks on the road in 2024 belching out the equivalent of a staggering 1.5 billion metric tons of carbon dioxide, the American love affair with the automobile is one of the nation’s greatest climate challenges.

But even as transportation has become the single-biggest contributor to US greenhouse gas emissions, recent developments in the sector offer both cause for hope and something of a blueprint for apolitical climate action in a highly charged moment.

One of the most important shifts is that – thanks to increasing electrification and vehicle design – average fuel economy in US cars and trucks reached historic highs in 2023, according to the Environmental Protection Agency (EPA). Meanwhile, CO2 levels from tailpipe emissions reached historic lows. Or in other words, US cars and trucks are the cleanest and most efficient they’ve ever been.

For perspective, in 1975, average light-duty vehicle fuel economy was just 13.1 miles per gallon (mpg). In 2023 (the last year for which comprehensive government data is available), that number was 26.9 mpg. What makes this shift so remarkable is that this increase in fuel efficiency came over the same time frame that automakers were able to effectively double the average power of light duty vehicles, from just 137 peak horsepower in 1975 to 272 horsepower.

The increasing electrification of US roads – last year, electric vehicles and plug-in hybrids accounted for nearly 10% of new vehicle sales – is a major factor, but it’s not the only one. EPA data shows that even with removing electric vehicles and plug-in hybrids from the equation, average fuel economy in 2023 still stood at 24.9 mpg.data shows that even with removing electric vehicles and plug-in hybrids from the equation, average fuel economy in 2023 still stood at 24.9 mpg.

fuel effiency standards mean better cars

How’d we get here? In a nutshell, government fuel efficiency standards – known as Corporate Average Fuel Economy (CAFE) standards – that require automakers to reach miles-per-gallon (mpg) benchmarks for the average vehicle in their fleet.

For decades, these standards remained effectively unchanged for cars, at a modest 27.5 mpg, and peaked at 23.5 mpg for light-duty trucks. That changed in 2010, when the federal government began rapidly raising CAFE targets as part of its strategy to cut greenhouse gas emissions and spur innovation.

These standards mean that today automakers are required to achieve an average fuel economy of 53.4 mpg for new cars and 38.2 mpg for new light-duty trucks. If current standards remain in place, by 2031, automakers will have to increase average fuel efficiency to 65.1 (cars) and 45.2 mpg (light-duty trucks).

efficient cars are cheaper cars to drive

One of the biggest effects of more stringent standards is growing number of electric vehicles now on offer to American drivers.

But even for drivers of traditional internal combustion engine vehicles, there’s another huge benefit: real savings on gas.

How much? Recent analysis from Consumer Reports shows that fuel efficiency standards in just the past three years will save drivers an estimated $2,200 over the lifetime of new vehicles. By staying the course with current policies, that number grows to around $6,000 in fuel savings over the next five years.

No surprise, most drivers love ambitious fuel economy standards. Separate Consumer Reports research shows that 96% of Americans cite fuel economy as an important factor in their vehicle purchase. Sixty-four percent agree that the government should continue to increase standards. After all, who wants to pay more to get from A to B?

California Drivers Are Saving Everyone Money

One of the (mostly) silent but critical factors in the increasing fuel efficiency of vehicle fleets nationwide is the state of California.

The Clean Air Act prevents individual states from establishing more stringent pollution controls than those set by the federal government. But it also enables states to apply for a waiver from EPA for this rule and set their own standards. Critically, if a state receives a waiver and does set tougher standards than the federal government, other states may adopt these stringent standards too.

Since 1967, California has done just that, arguing that because of its unique circumstances – i.e. smog – it should be able to mandate stricter pollution controls for cars sold in the state.

In 2002, recognizing the “compelling and extraordinary impacts” that climate change would bring to California, the state legislature went further, passing AB 1493. The law required state regulators to develop and implement rules that “achieve the maximum feasible reduction of greenhouse gases emitted by passenger vehicles and light-duty trucks and any other vehicles determined by the state board” for model year 2009 vehicles and later.

The resulting standards required new cars and trucks to produce no more than 323 and 439 grams of CO2 (or equivalent) per mile starting in 2009, with reductions in each model year through 2016. This required automakers wanting to sell cars in one of the 10 largest markets in the world to significantly increase fuel efficiency and reduce tailpipe emissions in their fleet.

Since then 17 states and the District of Columbia – which together account for nearly 40% of light duty vehicle registrations and over 25% of heavy duty vehicles in the US – have adopted California’s standards. And because no major manufacturer wants to miss out on these markets, the net result is that all Americans have access to increasingly clean and fuel-efficient vehicles.

the attack on standards is great for oil companies – not drivers

Despite the clear benefits of increasingly efficient and electric vehicles for drivers, Congress and the new administration are taking aim at both national standards and the California waiver that sets higher standards for 18 states and DC.

In one of his first official acts as transportation secretary, Sean Duffy directed the National Highway Traffic Safety Administration (NHTSA) to re-evaluate current fuel economy standards requiring average passenger vehicle fuel economy to reach 65.1 miles per gallon by 2031.

Meanwhile, this week, the House of Representatives used a novel reading of the Congressional Review Act to vote to repeal the EPA waiver for California, which the state has used to set targets including a ban on selling gas-powered cars beginning in 2035. Whether the Senate will bypass decades of precedent and overrule its own parliamentarian rules referee to follow suit remains to be seen.

These moves are great for fossil fuel companies that sell gasoline, but terrible for drivers and the climate. Keeping the standards that cut emissions and costs is just common sense.

Take action: Tell the Senate to protect the California waiver that makes cleaner and more efficient cars available to all Americans.