Overview

• The final Resetting the Corporate Average Fuel Economy rule states that Biden-era inclusion of electric vehicles exceeded the department’s legal authority and rescinds that approach.
• Under the new interpretation, EV credits are removed from efficiency calculations, effectively lowering the baseline mileage requirements for passenger cars and light trucks.
• The rule empowers the National Highway Traffic Safety Administration to propose fresh fuel economy targets, replacing the previous mandates for 2% annual improvements on cars and 10% increases for heavy-duty trucks.
• Environmental advocates warn that reduced standards will shrink clean-vehicle options, raise consumer fuel expenses and boost greenhouse gas emissions.
• Senate Republicans have advanced legislation to eliminate penalties for automakers failing to meet CAFE requirements, further easing compliance pressure.