New Vehicle Mileage Standard rising to 38 MPG by 2031 Under Biden Rule

Under new federal rules announced by the Biden administration, new vehicles sold in the U.S. will need to average about 38 miles per gallon (mpg) in real-world driving by 2031, up from about 29 mpg in 2024. The National Highway Traffic Safety Administration (NHTSA) will require passenger cars to improve fuel economy by 2% annually from 2027 to 2031, and SUVs and light trucks to do the same from 2029 to 2031.

These standards aim to support President Biden’s goal of having half of all new vehicles sold in the U.S. be electric by 2030, a significant increase from the current 7.6%. The administration argues that these rules will save nearly 70 billion gallons of gasoline and prevent over 710 million metric tons of carbon dioxide emissions by 2050. Transportation Secretary Pete Buttigieg highlighted that the new standards will reduce pollution, decrease reliance on foreign oil, and save car owners over $600 in fuel costs over their vehicle’s lifetime.

While some industry leaders like John Bozzella support the rules as they align with other federal emissions regulations, critics argue the standards are insufficient. Environmental groups believe the 2% annual improvement rate is too modest and fails to push automakers towards greater fuel efficiency.

Source: AP News