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The Street
The Street
James Ochoa

Gas cars are cleaner than ever, but proposed rules might change it

For many new and used car buyers seeking their next set of wheels, fuel economy is still one of the deal-breaking attributes that will decide whether to choose one gas-powered car over the other. 

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These days, thrifty buyers are virtually spoiled for choice, as an extensive list of vehicles in all shapes and sizes, from compacts, mid-size sedans, and crossover SUVs, get well over 30 miles per gallon, according to the Environmental Protection Agency (EPA).

Related: Iconic British sports car brand is making a change its fans will love

However, while advancements in technology have created an environment where many drivers can visit gas stations as infrequently as possible, new leadership in the White House might upend the hard work already done.

A family inspects the engine of a new Toyota Prius model

Nathan Howard/Getty Images

Fuel Economy at all-time high, emissions at all-time low

According to the latest edition of the EPA's Automotive Trends Report, new cars are as fuel efficient and less polluting as ever, which has resulted in cleaner and more breathable air for Americans. 

The government agency notes that model year 2023 was a "record high" year for fuel economy, as the average car sold on dealer lots in the U.S. reached 27.1 miles per gallon. This number is a milestone for the EPA, which notes that in 1975 — the first year the agency started gathering fuel economy data, the average gas guzzler on the road was able to eke out a ghastly 13.1 miles per gallon.

Though EVs do not use gas, the EPA notes that their adoption is helping eliminate some unbreathable gases in the air. The agency notes that adopting electric vehicles and plug-in hybrids has helped reduce CO2 emissions by 11 percent for model year 2023. 

“Manufacturers continue to innovate and are bringing technologies to market which will directly improve air quality, better protecting people’s health and saving lives,” EPA administrator Michael Regan said in a statement.

Related: EPA’s new, looser EV rules are still 'unrealistic,' auto dealers say

Currently, real-world CO2 emissions are at a record low of 319 grams per mile; but there is still a long way to go. 

As part of newly revised EPA rules adopted in March and set to take effect in 2027, brands across the auto industry would effectively have to sell at least 56% EVs within the total number of all new auto sales by 2032 in order to adhere to more stringent tailpipe emissions standards. 

In its ruling, the EPA says that passenger vehicles will have to adhere to an industrywide target of 170 grams per mile in 2027 and a strict 85 grams per mile by 2032.

More Automotive:

President-elect Trump's transition team wants to hit undo again

During President-elect Trump's first term in the Oval Office, rolling back "restrictive" fuel economy standards enacted during his predecessor's administration was a polarizing but impactful move that cemented his stance.

In March 2020, Trump undid Obama-era rules that would have required automakers across the industry to increase vehicle average fuel economy by about 5% per year until 2026. 

But since the Biden administration's EPA has enacted its rules, that greater auto industry has used its lobbying muscle to move the goalpost once more. 

In a letter dated Nov. 12 to President-elect Trump and his transition team at the Mar-A-Lago residence in Florida, John Bozzella, the president and CEO of the Alliance for Automotive Innovation, a lobbyist group representing manufacturers like Detroit's Big Three and foreign automakers like Toyota, Honda, and BMW, proposed for tailpipe rules adjusted to market conditions that aren't friendly to wide EV adoption just yet. 

"To remain successful and competitive, the auto industry needs a stable and predictable regulatory environment," the letter read.  "Automakers support reasonable and achievable federal and state emissions regulations aligned with current market realities that support a customer's ability to purchase a vehicle that meets their individual needs."

On Nov. 19, Reuters reported that the Trump transition team was working to weaken the Biden Administration's fuel-efficiency requirements and tailpipe emissions standards. One source cited by the news agency said the move was meant to appease automakers who found Biden's regulations "too onerous."

Related: Veteran fund manager sees world of pain coming for stocks

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