The California Energy Commission (CEC) has approved the Replacement Tire Efficiency Program, the first fuel efficiency standard in the United States for replacement PLT tires.

"The tires that come on new cars are typically designed to give drivers better fuel mileage," the CEC said in a press release issued on Aug. 17. "But average replacement tires are less efficient, meaning that consumers often lose mileage and range when they replace their tires. These cost-saving standards are designed to ensure that replacement tires are at least as energy efficient, on average, as tires sold on new vehicles.

"The standards, approved unanimously by CEC commissioners, will save California drivers nearly $1 billion per year in gasoline and electricity costs, putting money back in their pockets. The standards will also reduce carbon dioxide emissions by two million metric tons per year, equivalent to taking approximately 400,000 gasoline cars off California roads."

"Today, we are proud to approve the nation’s first replacement tire efficiency standards,” says CEC Chair David Hochschild. “This action will help Californians save approximately $1 billion a year on refueling while reducing pollution and extending the range of vehicles on the road. I would like to thank all the consumer organizations, industry leaders and public health advocates for their support of this important step forward for California.”

According to the CEC, the incremental cost for consumers "is very low – only $1.50 per tire during Phase 1 (2029-2033) and $6.50 per tire during Phase 2 (2033 and beyond). A typical driver of a gasoline car with more efficient tires will save $179 of gasoline over the life of a set of tires, or about seven times the incremental cost. These savings were calculated with gasoline prices of $4.60 per gallon. At the elevated gasoline prices of mid-2026, the savings could be 25% higher than estimated."

The CEC says "there are already replacement tires that meet the standards and are available today. These tires are popular, safe, long-lasting, competitively priced and made by a wide range of manufacturers. Manufacturers will have many years to adjust the design of tires that do not yet meet the standard, which comes into full effect in 2033."

"The CEC conducted extensive laboratory testing on the most popular replacement tires in California, as well as reviewed best-in-class industry data from companies such as Discount Tire. This analysis confirms that the regulation is cost-effective and feasible, and that there will be no adverse tradeoffs with tire lifespan, safety, or other characteristics.

"The CEC also conducted a five-year stakeholder engagement process with the tire industry, including manufacturers and trade associations. Based on feedback from stakeholders, the CEC has carved out exceptions for certain specialty tires, such as competition tires, large off-road tires, and all-weather winter performance tires. It also created product categories for long-life tires, ultra-high-performance tires, low-load-index tires, and other tires with special characteristics.

"As the CEC implements the tire replacement efficiency standard, it will continue to work with stakeholders and ensure equitable and effective enforcement."

Tiremakers' positions

This past April, a letter representing two tire manufacturers, Yokohama Tire Corp. and Goodyear Tire & Rubber Co.; the California Tire Dealers Association (CTDA); the Specialty Equipment Market Association; and two other trade associations articulated numerous concerns about the mandate.

The letter started by saying the proposed directive “will increase the cost of replacement tires by approximately $6 to $10 per tire” and that “tires capable of meeting rolling resistance performance ... are typically priced hundreds of dollars more per set than baseline alternatives.” 

The letter also noted that “California is in the midst of a widely acknowledged affordability crisis” and that by “materially increasing the cost of replacement tires, the proposed standards would impose hundreds of dollars in new upfront expenses on drivers.” 

Consumer freedom of choice was also addressed. “California consumers already have access to a wide range of tire options that vary in price, performance, durability, noise, traction and efficiency. Many consumers are willing to pay a premium for fuel-efficient or low rolling resistance tires when the benefits align with their driving needs and budgets. Others prioritize longevity, traction or affordability.  

“The proposed regulation removes these choices by mandating a specific performance outcome across the market, regardless of consumer preference, driving patterns or consumer purchasing power. This one size-fits-all approach is particularly problematic given the cost impacts involved.” 

The letter also touched on “operational and compliance burdens” that the proposed mandate would place on automotive repair facilities, including tire dealers, describing these obligations as “significant and unworkable.”  

The statement distributed on Aug. 17 by the CEC included comments provided by Michelin North America Inc..

"California's direction is consistent with Michelin’s all-sustainable and holistic approach for reducing the impact of tires at every stage of the life cycle without compromising safety and other performances that are important to consumers,” said Francesca Mosteller, director of state and local government affairs, Michelin North America.

“We support the efficiency goals and believe the proposed thresholds in this rulemaking are technically feasible within the defined timeframes.”

Reaction from CTDA

In a statement provided to MTD the evening of Aug. 17, the CTDA said that it "has worked actively with other stakeholder groups, including TIA (the Tire Industry Association) and others, throughout the standards development process, and we take some comfort that those efforts resulted in delaying the standards for a year (to January 1, 2029), as well as carve outs for certain market segments.

"However, we remain concerned about limiting consumer options, the significantly higher costs of compliant tires (which we believe to be significantly more than the CEC estimates), safety implications, and the impacts on the waste tire volume in California.”

To read past MTD editorials about the CEC's program, click here and here.