President Donald Trump says he has approved substantially lower federal fuel-economy standards for cars and light trucks, clearing the way for the Transportation Department to issue its final rule on Monday.
The change would reverse the previous administration’s planned increases through the 2031 model year. The proposal released in December aimed for a fleetwide average of 34.5 miles per gallon by 2031, compared with an estimated 50.4 miles per gallon under the standards it would replace.
Those numbers are not yet the operative rule. The legally controlling requirements will be the final text, its model-year tables and the accompanying regulatory analysis when the department makes them public. Saturday’s announcement establishes the administration’s decision, but manufacturers and potential challengers will need the issued document to assess its exact reach.
The administration argues that lower requirements will reduce vehicle prices by allowing manufacturers to sell a wider mix of petrol-powered models without relying as heavily on electric vehicles and compliance credits. Its proposal estimated an average reduction of about $930 in the price of a new vehicle.
The same departmental analysis projected costs elsewhere: roughly 100 billion additional gallons of fuel consumed through 2050, about $185 billion in added fuel spending and a five per cent increase in carbon-dioxide emissions. Those estimates may be revised in the final analysis and will be central to any court challenge over whether the agency adequately weighed statutory energy-conservation goals, consumer costs and technological feasibility.
Corporate Average Fuel Economy standards are administered by the National Highway Traffic Safety Administration. They set manufacturer fleet averages rather than a mileage requirement for every individual model. Automakers can comply across their fleets, subject to the detailed classifications, credits and penalties contained in the rule.
The rule is likely to draw close scrutiny from environmental groups and states that supported the higher trajectory. Any lawsuit would examine the administrative record rather than reweigh policy from the start, making the department’s explanation for changing course as important as the chosen mileage figures.
