President Joe Biden’s administration Friday finalized tighter vehicle fuel economy rules through 2031 that are significantly less stringent than first proposed, a win for the Detroit Three automakers who lobbied heavily for revised rules.
The National Highway Traffic Safety Administration said it would hike Corporate Average Fuel Economy (CAFE) requirements to about 50.4 miles per gallon by 2031 from 39.1 mpg currently. The new requirement is barely above the 49 mpg it previously required for 2026. Last year, NHTSA projected its tougher proposal would hike requirements to 58 mpg by 2032.
The agency said the proposed new rules will ultimately slash compliance penalties from what they would have been under the original proposal. It explained the change by noting automakers said “they cannot stop manufacturing large, fuel-inefficient light trucks while also transitioning to manufacturing electric vehicles.”
Environmental groups criticized the new rules as not strict enough, while automakers hailed the decision after calling the initial proposal unfeasible and warning it would result in dramatically higher vehicle prices.
Biden is running for reelection in November and working to build support among autoworkers and their unions, which had warned against the earlier vehicle proposals. Republican candidate Donald Trump has blasted the administration’s backing of EVs and stricter vehicle rules.
In July 2023, NHTSA had proposed boosting CAFE requirements by 2% per year for passenger cars and 4% per year for light trucks from 2027 through 2032. The final rule has no increase for light trucks for 2027 and 2028 and will only require 2% increases from 2029 through 2031
