Trump to Scrap Biden’s Fuel-Economy Standards
The White House unveiled a sweeping proposal on Wednesday aimed at dramatically softening the fuel economy benchmarks that Joe Biden locked into place last year, marking another effort by the administration to ease the pathway for selling gasoline-powered cars.
Under the plan released by the National Highway Traffic Safety Administration, the required fleetwide average for model year 2031 would drop to 34.5 miles per gallon—far below the 50.4 mpg level set under Biden. The agency also wants to reset the standards for earlier years and then raise them incrementally between 0.25% and 0.5% each year through 2031.
NHTSA noted that the Biden-era policy had demanded much steeper annual increases: 8% for models built in 2024 and 2025, and 10% for 2026. By contrast, the new plan represents a significant rollback that the administration argues will reduce the cost of purchasing a new vehicle by an estimated $900 on average, even though it would lead to substantially higher fuel consumption nationwide.
The agency is also seeking to overhaul the program itself. A key element of the proposal would scrap credit trading between automakers beginning in 2028 and discontinue certain credits tied to efficiency-enhancing features. In its explanation, NHTSA said the current system has become a “windfall for EV-exclusive manufacturers that sell credits to other non-EV manufacturers.”
President Donald Trump is expected to present the proposal alongside the chief executives of Ford Motor and Stellantis, the parent company of Chrysler.
Earlier this year, Trump signed a measure eliminating fuel economy penalties for the auto industry, and according to NHTSA, companies will not face any fines retroactive to the 2022 model-year period.
The effort to eliminate credit trading has major implications for companies like Tesla and Rivian, which have generated sizable revenue streams by selling credits to manufacturers still producing gas-powered vehicles.
Ford’s CEO Jim Farley applauded the move ahead of Wednesday’s event, saying Trump was “aligning fuel economy standards with market realities. We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability.”
GM’s Mary Barra, speaking at an event on Tuesday, underscored the pressures the industry faced under California’s now-blocked zero-emission rules. Before Congress intervened in June, states following California’s model were preparing to require that “35% of new vehicles sold in 2026 must be EVs,” she said. “We were going to have to start shutting down plants because we weren’t going to be able to build and sell those vehicles.”
NHTSA had previously projected that the 2022 standards for passenger cars and trucks would cut fuel use by 64 billion gallons and eliminate 659 million metric tons of emissions, delivering a net financial benefit of roughly $35.2 billion to American drivers.
Long-range projections from the same 2022 rule estimated more than 200 billion gallons of gasoline saved through 2050.
Environmental groups immediately blasted the new proposal. Kathy Harris of the Natural Resources Defense Council argued that “The Trump administration is sticking drivers with higher costs at the pump, all to benefit the oil industry. Drivers will be paying hundreds of dollars more at the pump every year if these rules are put in place.”
Trump has repeatedly advanced policies to ease the sale of gasoline vehicles and slow the shift toward electric models, including revoking EV tax credits and preventing California from imposing a 2035 phase-out of gas-powered car sales.
{Matzav.com}
