FI showroom red and grey logo
MenuMENU
SearchSEARCH

Biden to Resurrect Obama-era Push to Green Auto Mileage Standards

President Joe Biden has proposed a return to aggressive Obama-era vehicle mileage standards over five years.

July 29, 2021
Biden to Resurrect Obama-era Push to Green Auto Mileage Standards

 

Screen Capture Business Leader

3 min to read


President Joe Biden has proposed a return to aggressive Obama-era vehicle mileage standards over five years, according to industry and government officials. 

President Donald Trump had lowered tailpipe emissions standards.

Ad Loading...

His efforts also strive for tougher anti-pollution rules after that time to reduce greenhouse gas emissions and push 40% of U.S. drivers into electric vehicles (EVs) in 10 years.

The Administration should release the proposed rules from the Environmental Protection Agency and the Department of Transportation next week. They reflect the Biden Administration’s promise to address climate change while meeting auto industry pushes for a slower transition to EVs.

Biden aims to cut U.S. greenhouse gas emissions by at least half by 2030. The President cites the transportation sector as the largest contributor to climate change.

The new rules would begin with the 2023 car model year, applying California’s 2019 framework agreement on emissions standards reached with Ford, Volkswagen, Honda, BMW and Volvo, according to three officials speaking on the condition of anonymity. The California deal increases the mileage standard and cuts greenhouse gas emissions by 3.7% per year.

Requirements will ramp up in 2025 to Obama-era levels of a 5% annual increase in the mileage standard and a similar cut in emissions. The soar higher in model year 2026, possibly to 6% or 7%, officials say.

Ad Loading...

Environmental groups maintain the proposed rules do not go far enough. They had pushed for a more immediate return to Obama-era standards.

“We’re at the climate cliff, and the stakes are too high to aim low,” the Center for Biological Diversity writes in a full-page ad in The New York Times urging tough action. Dan Becker, director of the center’s Safe Climate Transportation Campaign, reportedly said the administration’s proposal is inadequate because it embraces two years of the California deal, which offered several exemptions.

In the proposed rule, the EPA may make a nonbinding statement that will ramp up requirements even faster starting in 2027. This will force the industry to sell more zero-emissions electric vehicles, officials said. The EPA is currently asking that 40% of all new car sales be EVs by 2030, according to officials.

Delaware Sen. Tom Carper, who chairs the Senate Environment and Public Works Committee, has urged banning the sales of new gasoline-powered passenger vehicles by 2035.  

Obama-era rules required automakers to raise fuel economy 5% per year from 2021 through 2026. Trump reduced that to 1.5% annually. In 2019, five automakers—Ford, BMW, Honda, Volkswagen and Volvo—reached a deal with California to raise mileage by 3.7% per year.

Ad Loading...

Trump later repealed California’s legal authority to set its own standards, which the Biden administration strives to restore.

The Trump ruling required 29 miles per gallon (mpg) in “real world” stop and start driving by 2026, compared to the Obama administration rules that would have increased it to 37 mpg.

The California deal put vehicles in the 33 mpg range, according to environmental groups.

It isn’t clear if the Biden Administration will restore credits for selling electric vehicles. However, the move is likely since EVs are a cornerstone of its plan to fight climate change. Biden’s nearly $2 trillion infrastructure proposal includes 500,000 new charging stations for electric cars and trucks. He also has proposed tax credits and rebates to help spur sales.

Automakers have expressed their commitment to transition to all EV sales, though environmental groups are skeptical the companies will stick to their promises if consumers continue to favor gas-powered cars, which cost far less. A $3.5 trillion Senate spending bill proposes tax credits and other incentives for consumers that switch to electric vehicles.

Ad Loading...

The move comes as Americans buy record numbers of less-efficient pickup trucks and SUVs, which will make it harder for the industry to comply. Over three-quarters of U.S. new vehicle sales this year have been trucks, vans and SUVs, according to Edmunds.

Fully electric vehicles represent just 2% of new vehicle sales in the U.S.

 

Originally posted on Auto Dealer Today

More Showroom

Photo of multiple new SUVs on a car dealership lot
Showroomby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →
Person pumping gas into car.
Showroomby Lauren LawrenceJune 17, 2026

Used EVs Outpace New

While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.

Read More →
Ad Loading...
Dodge emblem on orange vehicle
Showroomby Hannah MitchellJune 15, 2026

New Vehicles Down for Most Brands

Healthy May sales cut into inventory as automakers kept a tight reign on supply, though some brands ended the month with excess units on the ground.

Read More →
Photo of the back of an electric Mercedes
Showroomby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Orange Mitsubishi car on grass
Showroomby Lauren LawrenceJune 8, 2026

Mitsubishi Sets Growth Strategy, Structural Transformation

The Japanese automaker aims to 'strengthen products and technologies that embody its brand identity,' focus on its strongest markets and expand value-chain businesses 'that leverage its unique strengths.'

Read More →
Ad Loading...
inside of car, view of steering wheel with hands on it driving
Showroomby Lauren LawrenceMay 29, 2026

Affordable, Safe Cars for Teen Drivers

Families looking to balance affordability and safety in vehicles for their teen drivers can look to the updated list of recommended vehicles by IIHS and Consumer Reports.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Showroomby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
exterior daytime image of Porsche North Miami dealership
Showroomby Lauren LawrenceMay 22, 2026

Holman Opens Porsche Dealership in Miami

The North Miami store features the brand’s signature Destination Porsche design concept, combining contemporary architecture and technology to create what the auto group calls an ultra-luxury experience.

Read More →
Ad Loading...
Outside of a Cadillac dealership.
Showroomby Lauren LawrenceMay 20, 2026

Chicago to Gain Cadillac Rooftop in 2027

The two-story Cadillac dealership is being constructed at the former Lincoln Yards site, owned and operated by Canada-based Jack Carter Auto Group.

Read More →