Automotive
US lowers fuel economy targets to pre-Biden levels under revised rule
CNET reports that the Transportation Department rolled back vehicle efficiency rules, projecting consumer savings despite criticisms over high gas costs.
The short version
- The Department of Transportation released the Freedom Means Affordable Cars rule, rolling back corporate average fuel economy targets to pre-Biden administration levels.[CNET]
- Regulators project the rule will lower average new-vehicle costs by $1,300 and save $138 billion over five years, targeting a fleet average of 34.9 mpg by 2031.[CNET]
- The measure ends the fuel economy credit trading program in 2028, removing a key revenue source for manufacturers such as Tesla.[CNET]
- Consumer and environmental advocacy groups argue the reduced standards will force drivers to spend more at the pump amid elevated gas prices.[CNET]
Key facts
- The DOT's SAFE Vehicles Rule III resets federal fuel economy standards to pre-Biden-era levels, aiming for a 34.9 mpg fleet average by 2031 instead of the prior ~50.4 mpg goal.[CNET]
- The Department of Transportation estimates the rule will cut average new vehicle prices by $1,300 and save buyers $138 billion across five years.[CNET]
- Beginning in 2028, the regulation terminates the CAFE credit trading framework, which has generated approximately $2.76 billion annually for Tesla.[CNET]
- Vehicle classification rules will change in model year 2030 to prevent carmakers from reclassifying small crossovers as light trucks.[CNET]
What remains uncertain
- The net financial impact on drivers remains disputed between administration projections of purchase savings and advocacy claims of higher lifetime fuel expenses.[CNET]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.