Trump Administration Proposes Rollback of Biden-Era Fuel Economy Standards
The Trump administration has proposed rolling back the Biden-era fuel economy standards to a less stringent target. Announced at the White House, the plan aims to reduce the fuel efficiency target to about 34.5 miles per gallon by model year 2031, down from the Biden-era target of roughly 50 miles per gallon. Currently, the industry average is about 27 miles per gallon.
The administration argues that the previous standards were not realistically achievable and increased costs. Ford CEO Jim Farley expressed support for the change, suggesting it aligns with consumer demand. In contrast, environmental groups criticized the proposal, warning that it would lead to higher emissions and costs.
The rollback also includes ending a program that allowed automakers to buy fuel efficiency credits from rivals with higher electric vehicle sales, a practice the administration claims artificially supported the electric vehicle industry.
The proposal remains subject to a formal rulemaking process and is not yet final. Biden-era rules were projected to prevent more than 700 million metric tons of CO2 emissions by 2050, with transportation accounting for about 28% of US greenhouse gas emissions in 2022.
Reactions to the rollback have been mixed: while Ford supports it, the Sierra Club warns it would increase emissions. General Motors cautioned that insufficient adoption of electric vehicles could result in idling or shutting down factories producing less efficient vehicles. Trump claims that the rollback could save buyers about $1,000 per car, whereas Biden's estimates indicated roughly $600 in lifetime fuel savings.
