This week on Monday (August 17th), the California Energy Commission (CEC) approved the first-ever energy efficiency standard for tire replacement in the United States. The commission stated that this standard will save California residents billions of dollars in fuel costs, while critics argue that the CEC’s estimates are inaccurate and will result in increased overall expenditures for each consumer, with 70% of tires currently sold in the California market set to be phased out.
According to the CEC, the Replacement Tire Efficiency Program (RTEP) is the first energy efficiency standard for replacing tires on passenger cars and light trucks sold in California, requiring tires to meet the energy efficiency standards of original equipment tires when the vehicle was new.
The CEC stated that lower rolling resistance of tires means less fuel or electricity consumption. In the first phase (2029-2033), the rolling resistance is set at 9.0, with an additional cost of $1.5 per tire; in the second phase (after 2033), the rolling resistance is set at 7.2, with an additional cost of $6.5 per tire.
CEC members are not elected but appointed by the governor. The chairman of the agency, David Hochschild, said, “We are proud to approve the first replacement tire energy efficiency standard in the United States. This will help save California residents about $1 billion annually in energy supplies, reduce environmental pollution, and extend vehicle mileage.”
The commission projects that this move will save nearly $1 billion in gasoline and electricity costs for California drivers each year, benefiting the public. It will also reduce 2 million metric tons of carbon dioxide emissions, equivalent to reducing approximately 400,000 fuel cars on California roads. In addition, the regulation will reduce California’s energy demand by reducing gasoline consumption by 141 million gallons and electricity demand by 0.9 terawatt hours (TWh) annually.
The CEC also expects that after the implementation of this regulation, each gasoline car driver can save approximately $179 in fuel costs within the usual four-year tire usage cycle (calculated based on 2024 currency value).
Francesca Mosteller, Director of State and Local Government Affairs at Michelin North America, stated, “California’s development direction aligns with Michelin’s comprehensive sustainable and holistic concept, which aims to reduce the impact of tires throughout their entire lifecycle without compromising safety and other performance aspects that consumers value.” She added, “We support these energy efficiency goals and believe that the performance parameters set out in the regulations are technologically feasible within the established timeframe.”
California’s 3rd District Congressman Kevin Kiley posted on social media platform X, saying, “Congress overturned California’s ban on gasoline cars, only for the state to start banning the use of certain types of tires instead. This latest move, which defies common sense, could result in drivers spending hundreds of dollars more.”
Regarding the new tire cost data released by the CEC, while companies like Michelin support the new regulations, Goodyear and the California Tire Dealers Association (CTDA) pointed out that the commission may be underestimating the actual economic impact. The CEC also acknowledged that 70% of tires sold in California do not meet the standard and can still be sold in other states.
Representing Goodyear, Bret Gladfelty expressed concerns to the CEC, stating that this move will increase consumer costs. He also pointed out that the commission has yet to address the technical and legal issues involved in the regulation. He questioned the anticipated $6.5 price increase per tire in the second phase, suggesting that the new regulations could result in hundreds of dollars in additional costs for a set of four tires. The actual impact on companies includes the need to improve designs to reduce tire resistance without compromising durability and traction performance. Product development and pricing strategies will also need adjustment to manage costs effectively.