DOT Unveils Proposal to Reset CAFE Standards

The U.S. Department of Transportation (DOT) and NHTSA have proposed significantly easing Corporate Average Fuel Economy (CAFE) standards under the Trump administration’s “Freedom Means Affordable Cars” plan. Covering model years 2022–2031, the rule would save consumers $109 billion, lower new vehicle prices by ~$1,000, and improve safety by encouraging faster fleet turnover.

Key changes: end CAFE credit trading by 2028, reclassify small SUVs as passenger cars, and slow fuel-economy increases to 0.25–0.7% annually, resulting in a 2031 fleet average of just 34.5 mpg. Secretary Sean P. Duffy called previous standards costly and EV-forcing. A 45-day public comment period begins upon Federal Register publication.

From The EV Report: 

“U.S. Department of Transportation Secretary Sean P. Duffy and President Donald J. Trump have introduced the “Freedom Means Affordable Cars” initiative. This proposal seeks to reset the National Highway Traffic Safety Administration’s (NHTSA) Corporate Average Fuel Economy (CAFE) standards. The action aims to address and replace regulatory requirements imposed by the previous administration.”

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