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U.S. Rescinds Biden Administration’s Latest Fuel Economy Standards

U.S. Transportation Secretary Sean Duffy has directed the National Highway Traffic Safety Administration (NHTSA) to reconsider fuel economy rules covering new vehicles produced between the 2022 through 2031 model years. Duffy officially took office late Tuesday. The order would essentially undo fuel efficiency standards established under President Joe Biden.

New proposal would rollback fuel economy standards.

Per a report from Reuters, the current Corporate Average Fuel Economy (CAFE) standards stipulate an average fuel economy for light duty vehicles of 50.4 miles per gallon (mpg) by 2031, a significant increase from 39.1 mpg proposed earlier. The proposed rollback is part of a broader effort by the Trump administration to shift away from government support for all-electric vehicles. Additionally, Duffy has instructed the NHTSA to reevaluate fuel economy standards for heavy-duty pickup trucks and vans through 2035.

The new Transportation Secretary cites concerns that regulations are making vehicles more expensive for American families.

“Artificially high fuel economy standards designed to meet non-statutory policy goals, such as those NHTSA has promulgated in recent years, impose large costs that render many vehicle models unaffordable for the average American family,” Duffy states in a memo. “They also put coercive pressure on automakers to phase out production of various models of popular (internal combustion engine) vehicles.”

For the moment, major automakers, including General Motors, have yet to comment on the proposed policy change. Nevertheless, federal law still requires that the NHTSA sets fuel efficiency standards at the “maximum feasible level,” meaning further revisions may still be ahead.

According to the NHTSA, the current regulations would result in savings of 64 billion gallons of gasoline and a reduction of 659 million metric tons of carbon emissions. Although stricter fuel standards were expected to raise vehicle prices, the agency argued that long-term fuel savings would outweigh the upfront cost, with estimated consumer benefits reaching $35.2 billion.

The proposed fuel economy rollback aligns with broader efforts by the Trump administration to undo Biden-era policies promoting electric vehicles and emissions reductions. The Environmental Protection Agency (EPA) is also in the process of reviewing emissions standards, including the potential revocation of California’s authority to ban gas-powered vehicle sales by 2035.

While the rollback is expected to provide relief for automakers prioritizing traditional gas-powered models, particularly full-size SUVs and trucks, it also introduces a degree of uncertainty for manufacturers that have heavily invested in EVs to comply with previous regulations – including GM.

Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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