The U.S. Department of Transportation issued a final rule Friday, June 6, declaring that fuel economy standards set during the Biden administration violated federal law by factoring in electric vehicles, a move that lays the groundwork for looser future requirements.
Transportation Secretary Sean Duffy said the rule corrects what the department calls an “illegal regulation” and affirms its authority to reset how Corporate Average Fuel Economy, or CAFE, standards are set. While the rule doesn’t change current requirements, it clarifies how NHTSA will interpret its legal authority in future rulemaking.
“Under President [Donald] Trump’s leadership, we are making vehicles more affordable and easier to manufacture in the United States,” Duffy said in a statement. “The previous administration illegally used CAFE standards as an electric vehicle mandate—raising new car prices and reducing safety. Resetting CAFE standards as Congress intended will lower vehicle costs and ensure the American people can purchase the cars they want.”…