Gasoline Standards Cuts For Gas Guzzlers Start in 2027

Typically, what happens with these types of regulations is delay for another 2 to five years before becoming active. This may occur. The other likelihood being the automakers going to court suing for a delay or a ruling on constitutionality. SCOTUS could again decide Congress can only make regulations and this capability was not delegated properly or can not be delegated to the NHTSA. One example:

“Tip Regulations under the Fair Labor Standards Act: Delay of Effective Date.”

The amendments to 29 CFR 10.28(b)(2), 531.56(e), 578.1, 578.3, 578.4, 579.1, 579.2, 580.2, 580.3, 580.12, and 580.18, published at 85 FR 86756 (December 30, 2020), and delayed at 86 FR 11632 (February 26, 2021) until April 30, 2021, are proposed to be further delayed until December 31, 2021. Submit written comments on or before April 14, 2021.

This was a minor delay in terms of length. Another example of delay using a planned delay. Today, the Centers for Medicare & Medicaid Services (CMS) released revised guidance detailing the requirements and parameters of the new Medicare Drug Price Negotiation Program for the first round of negotiations, which will occur during 2023 and 2024 and result in prices that will be effective beginning in 2026.

The new regulation is something sorely needed. It may result in a mixed bag of outcomes. Then too, I believe the government is late to the game on regulating gasoline and other fuel standards for vehicles. For example, electric vehicle manufacturing is the wild west of introduction. There is a lot to be learned from this product and people are scrambling to buy them.

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Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027-2032 and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030-2035, NHTSA.

AGENCY: National Highway Traffic Safety Administration (NHTSA).

ACTION: Notice of Proposed Rulemaking.
SUMMARY: NHTSA, on behalf of the Department of Transportation (DOT), is proposing new fuel economy standards for passenger cars and light trucks and fuel efficiency standards for model years (MYs) 2027-31 that increase at a rate of 2 percent per year for passenger cars and 4 percent per year for light trucks, and new fuel efficiency standards for heavy-duty pickup trucks and vans (HDPUVs) for MYs 2030-2035 that increase at a rate of 10 percent per year.

NHTSA is also setting forth proposed augural standards for MY 2032 passenger cars and light trucks, that would increase at 2 percent and 4 percent year over year, respectively, as compared to the prior year’s standards.

NHTSA currently projects that the proposed standards would require an industry fleet-wide average for passenger cars and light trucks of roughly 58 miles per gallon (mpg) in MY 2032 and an industry fleet-wide average for HDPUVs of roughly 2.6 gallons per 100 miles in MY 2038.

NHTSA further projects that the proposed standards would reduce average fuel outlays over the lifetimes of passenger cars and light trucks by $1,043 and of HDPUVs by $439. These proposed standards are directly responsive to the agency’s statutory mandate to improve energy conservation and reduce the nation’s energy dependence on foreign sources.

Notice of Proposed Rulemaking: CAFE 2027-2032, HDPUV 2030-2035 (nhtsa.gov)

Better Idea Than Releasing Reserves, Angry Bear, Elizabeth Kilbert.