The Trump administration has followed through with a relaxation on vehicle emissions standards that were a key part of former-President Obama's climate policy. The administration justification of the new fuel economy standard is to adjust the policy it feels was too costly for automakers, which would cause higher prices for consumers, causing them to drive older, less efficient and safe vehicles.
Opposition to the modified standards by environmental groups is based on both the higher pollution, and potential detrimental climate affects that they say would result, as well as the higher prices consumers will pay for more gasoline required by less efficient vehicles.
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Will it make a difference?
The new rule, named the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule will require an annual increase in fuel efficiency of 1.5% by 2026, down to 5% under the existing rules. This translates into a reduction from an average of almost 50 miles per gallon, to about 40 miles per gallon.
The state of California has been battling to have its own standards. Automakers such as Ford Motor (F 0.20%), Honda Motor Co. (HMC 0.17%), BMW (BAMXF 1.50%) (BMWYY) and others have struggled with the potential need for different standards, and already seem to be working toward the stricter California levels.
U.S. Secretary of Transportation Elaine L. Chao, noting the higher costs required with the previous rules, said "by making newer, safer, and cleaner vehicles more accessible for American families, more lives will be saved and more jobs will be created."
Environmental advocacy groups including the Climate Law Institute at the Center for Biological Diversity are criticizing the change as a benefit to oil companies that will lead to higher climate pollution. The outcome will likely play out in courts as suits are filed.
