A car salesman puts a mileage estimate in a window of a new car. New rules finalized Tuesday will nearly double the average fuel economy for 2025 model-year cars.
NEW YORK (CNNMoney) -- The Obama administration finalized new fuel economy rules Tuesday that within 12 years will almost double today's standard for cars and light trucks to 54.5 miles per gallon.
The rules, which have been in the works for several years, will add thousands of dollars to the cost of new cars. But in the long run, regulators say, drivers will spend less on gas, outweighing the additional cost at the dealership. They say the rules will also help reduce the nation's oil imports.
The standard takes effect in 2024 when 2025 model-year cars begin to hit dealer lots.
"These fuel standards represent the single most important step we've ever taken to reduce our dependence on foreign oil," said President Obama in a statement announcing the rules.
The standard was praised by environmental groups. Major automakers such as General Motors (GM, Fortune 500) and Ford Motor (F, Fortune 500), which agreed to the new fuel standards when they were proposed by the Obama administration last year, are investing billions to develop new fuel-efficient cars and electric vehicles.
"What we know is that consumers want higher fuel efficiency in their cars and trucks and GM is going to give that to them," said a statement from GM on Tuesday. "While the requirements are aggressive, we intend to pursue them vigorously."
But the rules have some critics, including many conservative members of Congress. They object to the higher vehicle cost, what they say will be reduced vehicle choices for drivers who want large cars or trucks, and say safety will suffer as a result of new lighter vehicles.
"The rule finalized today by the Obama Administration will hurt American consumers by forcing them to drive more expensive and less safe automobiles," said a statement by the Republican leaders of the House Oversight and Government Reform Committee, which had asked that the rules be reevaluated.
While the automakers have signed off on the rules, their dealership organization expressed concern.
"This regulation gambles that millions of consumers will be able to afford thousands more for generally smaller, more expensive vehicles that may not meet their needs," said the National Automobile Dealers Association in a statement last November during the rule making process.
The current mileage rules run through the 2016 model year. The new rules will gradually start to take effect with the model year 2017 cars and raise the mileage standards from there.
"We know that these standards are both achievable and cost-effective," said Environmental Protection Agency Administrator Linda Jackson during a press call Tuesday.
But if the industry has problems meeting the new standards, the rules do have a review process built in that could reduce the fuel efficiency target.
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