EPA and NHTSA test the water for a 62 mpg standard

EPA and NHTSA test the water for a 62 mpg standard

EPA and NHTSA this week issued a notice of intent for rulemaking on fuel economy standards for vehicles built between 2017 and 2025 and suggested in a report in the notice that 62 miles per gallon was within reach for the industry.

The report examined a three to six percent increase in fuel economy standards each year between 2017 and 2025, which comes out to 47 to 62 miles per gallon. The report also included a range of costs and savings that would come with the higher fuel standards. Auto manufacturers could expect costs between $800 and $3,500 and savings between $5,000 to over $7,000 due to lower fuel costs, the report said, but also cautioned costs could be higher with the final rules.

“The more detailed analysis for the upcoming proposal will likely show that the industry average cost will be higher than this initial assessment, while individual manufacturer costs may be higher or lower,” EPA noted in its analysis.

The final rule is nearly two years away, and many factors — principally how fast the auto industry can develop electric vehicles and other advanced technology and, indeed, whether such an ambitious standard can be met.

Democratic governors and environmental groups are urging the administration to make sure the 62 miles per gallon target is achieved. But the Alliance for Automobile Manufacturers, the main trade group representing the industry, cautioned that the standards included are preliminary, not a specific number and not necessarily predictive of the final standard.

Today cars are required to get 27.5 miles per gallon, and fuel economy standards announced last year by the administration increases that average to 35.5 mpg by 2016.

The fuel economy standards eventually adopted will largely hinge on how fast electric vehicles and other advanced technology is deployed, the assessment states. Out of the 245 million registered vehicles in the United States, just 1.6 million of those are hybrid vehicles and 33,000 are full electric, according to the R.L. Polk research database.