The Obama administration said Wednesday its proposal to nearly double auto fuel efficiency standards to 54.5 mpg by 2025 will cost the auto industry $157.3 billion.
The National Highway Traffic Safety Administration and Environmental Protection Agency said in proposing the nearly 900-page regulation that consumers will save more at the pump than the higher vehicle costs.
The new rules will save more than $1.7 trillion at the pump, the administration said, and have net benefits of $252 billion to $358 billion. Off the additional costs to the auto industry, an estimated $113 billion will go to boost passenger car fuel economy and $44 billion to improve light truck mileage.
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