The US administration is considering cutIn a major change to the Corporate Average Fuel Economy (CAFE) program, mileage ratings for electric vehicles (EVs) to meet fuel economy regulations for automakers.
The U.S. Department of Energy expects to significantly reduce the way petroleum-equivalent fuel economy is calculated for EVs, which could mean automakers must sell lower-emission cars.
If carmakers can’t meet CAFE rules, they’ll take out credits or pay fines.
Vehicles are ranked by their EPA combined city/highway rating. All electric vehicle fuel economy is assessed In miles per gallon equivalent (MPGe), 33.7 kWh equals 1 gallon of gasoline.
“Encouraging the adoption of EVs may reduce petroleum consumption, but giving more credit to that adoption may lead to increased net petroleum use because it enables lower fuel economy in conventional vehicles, which are the majority of vehicles sold,” the DOE said. Regulation.
“Furthermore, contrary to the original intent behind the fuel content factor, the “excessively high calculated fuel economy values for EVs” would encourage manufacturers to produce additional EVs if they were able to achieve CAFE compliance with a relatively small number of EVs,” DOE said in the proposed rule.
According to DOE’s proposal released today, the Alliance for Automotive Innovation (Auto Innovators) requested that DOE give careful consideration to determining whether to lower the EV mileage rating.
Contrary to the requests of other commenters, the Coalition requested that the ratings be increased if changed.
“Auto innovators said the intent of Congress was to encourage the use of alternative fuel vehicles. An increased value to PEF would lead to more sales of electric vehicles as alternatives to gasoline-fueled vehicles because automakers would be more profitable. A regulatory incentive to sell electric vehicles,” the DOE said.
DOE will accept comments on the rule on or before June 12, 2023.
By Tsvetana Paraskova for Oilprice.com
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