CEC Approves Nation’s First Replacement Tire Efficiency Standards, Saving Californians Billions in Fuel Costs

For Immediate Release: August 17, 2026

The California Energy Commission (CEC) on Monday approved the Replacement Tire Efficiency Program (RTEP), the nation’s first efficiency standards for replacement tires sold for passenger vehicles and light-duty trucks in California. 

The tires that come on new cars are typically designed to give drivers better fuel mileage. 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 (CO2) emissions by 2 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,” said 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.” 

“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 & 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.”

“[The state] is at the cusp of adopting a program that will deliver real cost savings and environmental benefits to the people of California, allowing you to drive forward energy and climate benefits,” said Karim D. Marshall, Director of Climate and Energy Policy, Consumer Federation of America. 

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.

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 replacement tire efficiency standard, it will continue to work with stakeholders and ensure equitable and effective enforcement.

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About the California Energy Commission     
The California Energy Commission is the state's primary energy policy and planning agency, leading the state to a 100 percent clean energy future for all. It has seven core responsibilities: advancing state energy policy, encouraging energy efficiency, certifying power plants, investing in energy innovation, developing renewable energy, transforming transportation, and preparing for energy emergencies. 

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