Transportation Secretary Takes First Step to Rescind Biden Fuel Standards

January 29, 2025

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Soon after being sworn in as the next U.S. Transportation Secretary, Sean Duffy signed an order for a review of the current Corporate Average Fuel Economy, or CAFE, standards for model years 2022 and on.

“Artificially high fuel economy standards designed to meet non-statutory policy goals, such as those NHTSA has promulgated in recent years, impose large costs that render many vehicle models unaffordable for the average American family,” read Duffy’s January 28th memo. “They also put coercive pressure on automakers to phase out production of various models of popular (internal combustion engine) vehicles.”

The memorandum, which directs the National Highway Traffic Safety Administration to begin a rulemaking to either rescind or replace all existing CAFE standards, called the previous administration’s efforts a way to meet its goal of “forcing rapid electrification of the Nation’s motor vehicle fleets.”

Last June, NHTSA announced the final rule for MY 2027-2031 CAFE standards and MY 2030-2035 heavy-duty pickup trucks and vans vehicle fuel efficiency standards. The rule called for fuel economy to increase 2% per year for MY 2027-2031 passenger cars and 2% per year for MY 2029-2031 light trucks. Heavy-duty pickup truck and van fuel efficiency was set to increase 10% per year for MY 2030-2032 and 8% for MY 2033-2035.