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Republicans back Transportation overhaul of fuel economy standards

More than 20 House Republicans, led by Energy and Commerce Chairman Rep. Brett Guthrie (R-KY), are calling on the Transportation Department to quickly finalize its rule to overhaul vehicle fuel economy standards.

Guthrie, along with Republican colleagues, sent a letter to the Secretary of Transportation Sean Duffy on Thursday in support of the agency’s proposed changes to the Corporate Average Fuel Economy, or CAFE standards. The lawmakers argued that the existing standards, implemented by the Biden administration, effectively mandated electric vehicles and reduced consumer options. 

The Biden administration “established unlawful fuel economy standards that served as a de facto electric vehicle mandate,” the lawmakers wrote. 

“The rule instituted aggressive fuel economy targets that could only be achieved through broad vehicle electrification, made improper assumptions on vehicle electrification, expressly considered ‘dedicated automobiles,’ and allowed consideration of the fuel economy credit program in establishing fuel economy standards,” it reads. “All of these requirements conflict with the statute’s explicit directives.” 

CAFE standards are aimed at lessening energy consumption, emissions, and consumer costs by requiring manufacturers to ensure their fleets meet an average miles-per-gallon target for cars and trucks. 

The Trump administration last December proposed to overhaul the Biden administration’s CAFE standards. 

The Biden administration set fuel economy standards to increase 2% per year for model years 2027 to 2031 for passenger cars, while light trucks would increase 2% per year for model years 2029 to 2031. The requirements would result in light-duty vehicles reaching an average of 50.4 mpg by model year 2031. They also allow automakers to improve their fleet’s fuel-economy average by manufacturing more electric vehicles and hybrids. 

“We think the rule is going to bring down prices,” Duffy said earlier this year at the Auto Show in Washington, D.C. “We think we’re giving the freedom to the manufacturer to make vehicles that people want to buy.” 

“I have no problem with EVs and hybrids,” he added. “I think people should choose what kind of vehicle that they want to buy and what works for them and their family.” 

The new CAFE standards proposal would significantly scale back the requirements by allowing manufactures to meet standards by gas-powered cars, and not requiring a shift to EVs.

Specifically, the proposal would ramp down the required improvement in fuel economy, until it is just 0.25% a year for model years 2029 to 2031, for cars and trucks.

The administration said that the proposed standards would achieve a fleet average fuel economy of 34.5 mpg by 2031, far down from the 50.4 mpg envisioned under the Biden rules. The Trump proposal would also end the credit trading program, starting in 2028.

President Donald Trump has vowed to slash the Biden administration policies meant to promote EVs. he signed the One Big Beautiful Bill Act, which terminated subsidies for EV purchases, and his administration has rolled back regulations meant to promote EVs.

TRUMP ROLLS BACK FUEL RULES MEANT TO BOOST ELECTRIC VEHICLES: WHAT TO KNOW

The department’s “new proposal appropriately brings the CAFE program back in statutory compliance and aligns with congressional intent in establishing the program through setting achievable fuel economy targets, not picking winners and losers in the marketplace, and addressing credit trading,” the lawmakers wrote. 

They added, “We urge the Department to expeditiously finalize the proposed rule, and we stand ready to support the Department in this effort.”

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