● Covered by 2 sources · 2 reportsMedium impact2 negative
Trump Administration Finalizes Reduced Fuel Efficiency Standards for Vehicles
Key points
- New CAFE standard set at 34.9 mpg by model year 2031.
- Replaces previous target of 50.4 mpg.
- Emissions credits and plug-in vehicles removed from fleet average calculations from 2028.
- Automakers may save money, but consumer groups anticipate higher fuel costs.
- Critics cite increased healthcare costs and climate change impacts.
New Fuel Efficiency Standards Finalized
The US Department of Transportation has finalized new Corporate Average Fuel Economy (CAFE) standards, setting a target of 34.9 miles per gallon (mpg) for model year 2031 vehicles. This action is described as a significant deregulatory move by the Trump administration.
The new standard replaces a previous target that would have required a fleet average fuel economy of 50.4 mpg by model year 2031. The finalized rule represents a rollback to fuel economy numbers last seen over a decade ago, and is only slightly higher than the 30.1 mpg target set for model year 2024.
Impact on Automakers and Consumers
The Trump administration claims the new plan will reduce the average cost of a new vehicle by $1,300, leading to $138 billion in savings over the next five years. Automakers have expressed satisfaction with the new rules.
However, consumer advocacy, health, and environmental groups have criticized the changes. They argue that weaker fuel economy standards will result in Americans paying more at the pump, in addition to increased healthcare costs and damages from climate change.
Changes to Emissions Credits and Plug-in Vehicles
The new rule also includes significant changes to how emissions credits are handled. The notice of final rulemaking criticizes the concept of emissions credits, stating they discouraged investment in cleaner engine technology. As a result, such credits will be eliminated from model year 2028 onwards.
Furthermore, plug-in vehicles will no longer be included in fleet average calculations starting in model year 2028. This change could reduce incentives for automakers to produce electric and hybrid vehicles.
Background and Context
The finalized rule follows an announcement by Sean Duffy, the Transportation secretary, in January, indicating that fuel efficiency standards established under the Biden administration would be reversed. The previous Biden-era rules, while having a slower ramp-up, would have necessitated a greater production of electric vehicles and plug-in hybrids by automakers.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
The Department of Transportation has issued a new rule for Corporate Average Fuel Economy (CAFE) standards, setting a target of 34.9 miles per gallon by model year 2031. This rollback eliminates emissions credits and removes plug-in vehicles from fleet average calculations, potentially reducing incentives for automakers to produce electric and hybrid vehicles.
The US Department of Transportation finalized a rule to reduce fuel efficiency standards, setting a target of 34.9 miles per gallon by model year 2031, replacing a previous target of 50.4 miles per gallon. This change is projected to save automakers money but is criticized by consumer, health, and environmental groups for potentially increasing fuel costs for consumers and contributing to air pollution.