Latest news with #CorporateAverageFuelEconomy
Miami Herald
3 hours ago
- Automotive
- Miami Herald
Senate Moves to End Fuel Economy Fines That Hit Automakers Hardest
Senate Republicans have proposed ending fines for automakers not meeting Corporate Average Fuel Economy (CAFE) rules as part of President Trump's "Big Beautiful Bill." CAFE fuel economy standards have been active since 1975, with the initial penalty at a $5 fine per 0.1 mpg below the standard, multiplied by the number of vehicles sold in the US market. In 1997, this fine increased to $5.50, and today, the penalty is $14 per 0.1 mpg below the standard, with some automakers significantly more affected than others. Stellantis has paid the highest amount of recent fines, including $156.6 million for the 2016 and 2017 model years, a record $235.5 million for the 2018 to 2019 period, and $190.7 million for the 2019 and 2020 periods. General Motors (GM) paid $128.2 million in penalties for 2016 and 2017. In 2001, BMW paid a $27 million CAFE fine. If Congress doesn't change CAFE rules, GM, Ford, and Stellantis are projected to pay over $10 billion in penalties from 2027 to 2032 under stricter regulations set by the Biden administration, according to Transport Topics. Senate Republicans also proposed lowering emissions requirements, ending the $7,500 electric vehicle (EV) tax credit, imposing a $250 annual EV registration fee, and phasing out EV battery production tax credits in 2028. Tesla earned almost $2.8 billion last year by selling regulatory credits to other automakers, helping competitors meet government-established car emissions rules, many of which are in California. Competitors who don't manufacture enough zero-emission vehicles face steep fines if they don't purchase regulatory credits from Tesla. If rolled back, new emissions requirements would save automakers $200 million, Reuters reports. The Transportation Department also declared that former President Biden's administration exceeded its authority by assuming a high EV adoption rate in calculating fuel economy rates, increasing the likelihood of looser CAFE standards. Under President Biden, 2027 to 2031 model-year passenger cars faced a 2% annual fuel economy increase requirement, with trucks subject to a 4% increase. However, new final rules would keep the 2027 to 2031 passenger car fuel economy at 2% while lowering the annual increase for trucks from 4% to 2% for 2029 to 2031 models. However, separate legislation may eliminate CAFE fines altogether. Automakers could still face tailpipe emissions rules established by the Environmental Protection Agency (EPA), even if Congress eliminates CAFE fines. While Congress can overturn EPA rules, its most recent CAFE proposal doesn't impact EPA penalties. As of 2025, automakers are subject to EPA penalties up to $45,268 per non-compliant vehicle or engine, $4,527 per tampering event or sale of defeat device, and $45,268 per day for reporting and record-keeping violations. If passed, Congress's proposal could significantly shape the U.S. EV adoption rate in favor of lowering immediate costs for legacy automakers. "We are making vehicles more affordable and easier to manufacture in the United States. The previous administration illegally used CAFE standards as an electric vehicle mandate, raising new car prices and reducing safety. Resetting CAFE standards as Congress intended will lower vehicle costs and ensure the American people can purchase the cars they want," said current Department of Transportation Secretary Sean Duffy regarding Congress's proposal to end CAFE fines. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
The Hill
3 days ago
- Automotive
- The Hill
Trump undercuts Biden fuel economy rules
The Big Story The Trump administration on Friday took a step to undermine a Biden-era rules tightening car fuel efficiency requirements. The Transportation Department published an interpretive rule that says the Biden administration improperly considered electric vehicles as a way to make vehicle fleets more efficient While this determination does not formally end the Biden-era rule, the Trump administration indicated that while the rulemaking process plays out, it may not enforce the Biden-era standards. 'Pending the rulemaking process for the establishment of replacement standards, [the National Highway Traffic Safety Administration] will exercise its enforcement authority with regard to all existing … standards in accordance with the interpretation set forth in this rule,' it stated. Transportation Secretary Sean Duffy in a statement accused the previous administration of trying to push an electric vehicle 'mandate.' 'Under President Trump's leadership, we are making vehicles more affordable and easier to manufacture in the United States,' Duffy said. 'The previous administration illegally used [Corporate Average Fuel Economy] standards as an electric vehicle mandate.' The Biden administration issued a rule requiring cars to be about 2 percent more fuel efficient each year while heavy duty pickup trucks and vans would have to be 10 percent more efficient each year from 2030 to 2032 and 8 percent more efficient in the years after. Read more at Welcome to The Hill's Energy & Environment newsletter, I'm Rachel Frazin — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains. Did someone forward you this newsletter? Subscribe here. Essential Reads How policy will affect the energy and environment sectors now and in the future: Freedom Caucus warns it will 'not accept' Senate changes on green energy tax credits The conservative House Freedom Caucus said Friday it would 'not accept' changes that 'water down' its cuts to green energy tax credits as the Senate weighs whether to alter parts of the One Big Beautiful Bill Act. Senate Republicans propose eliminating penalties for violating fuel efficiency rules Senate Republicans are proposing to terminate penalties for automakers whose fleets are not efficient enough to meet national standards. Atmospheric carbon dioxide levels break seasonal records: NOAA Atmospheric concentrations of carbon dioxide made history last month by climbing to their highest seasonal peak available in historical records, a team of researchers reported. In Other News Branch out with a different read from The Hill: With hurricane season underway, Gulf Coast worries FEMA, Weather Service aren't ready With hurricane season officially underway, worries are mounting around whether President Trump's cuts to the federal government have endangered the nation's disaster response. The concern is particularly … What We're Reading News we've flagged from other outlets touching on energy issues, the environment and other topics: N.J. will give residents at least $100 credit to help pay for soaring electric bill bills, governor says ( The Missing Engineers (Bloomberg) On Our Radar Upcoming news themes and events we're watching: Tuesday The House Energy and Commerce Committee will hold a hearing on the Energy Department's budget Wednesday Forest Service Chief Tom Schultz will appear before the Senate Appropriations Committee to discuss his agency's budget Leaders of the Army Corps of Engineers and Bureau of Reclamation will appear before the Senate Appropriations Committee to discuss their agencies' budgets. Thursday Interior Secretary Doug Burgum is slated to appear before the House Natural Resources Committee in a hearing on Interior's budget The Senate Science, Commerce and Transportation Committee will hold a hearing titled 'Finding Nemo's Future: Conflicts over Ocean Resources' What Others are Reading Two key stories on The Hill right now: Hegseth could be 'on the hook' for hundreds of millions on Qatari jet, says Raskin The top Democrat on the House Judiciary Committee has warned Defense Secretary Pete Hegseth that he could be 'on the hook' for hundreds of millions of dollars for having accepted a luxury jet from the Qatari government. Read more Supreme Court hands DOGE big wins in Social Security, records cases The Supreme Court on Friday handed the Department of Government Efficiency (DOGE) two major victories in its expanding legal battle over drastic efforts to reshape the federal bureaucracy. Read more You're all caught up. See you Monday! Thank you for signing up! Subscribe to more newsletters here
Epoch Times
3 days ago
- Business
- Epoch Times
DOT Final Rule Says Biden-Era Fuel Standards Misused Law, Paves Way for Rollback
The U.S. Department of Transportation issued a final Transportation Secretary Sean Duffy said the rule corrects what the department calls an 'illegal regulation' and affirms its authority to reset how Corporate Average Fuel Economy, or CAFE, standards are set. While the rule doesn't change current requirements, it clarifies how NHTSA will interpret its legal authority in future rulemaking.
Yahoo
3 days ago
- Automotive
- Yahoo
Trump administration issues rule undermining Biden car fuel efficiency rules
The Trump administration on Friday took a step to undermine Biden-era rules that tightened fuel efficiency requirements for cars and trucks. The Transportation Department published an interpretive rule that says the Biden administration improperly considered electric vehicles as a way to make vehicle fleets more efficient While this determination does not formally end the Biden-era rule, the Trump administration indicated that while the rulemaking process plays out, it may not enforce the Biden-era standards. 'Pending the rulemaking process for the establishment of replacement standards, [the National Highway Traffic Safety Administration] will exercise its enforcement authority with regard to all existing … standards in accordance with the interpretation set forth in this rule,' it stated. Transportation Secretary Sean Duffy, in a written statement, accused the previous administration of trying to push an electric vehicle 'mandate.' 'Under President Trump's leadership, we are making vehicles more affordable and easier to manufacture in the United States,' Duffy said. 'The previous administration illegally used [Corporate Average Fuel Economy] standards as an electric vehicle mandate.' The Biden administration issued a rule requiring cars to be about 2 percent more fuel efficient each year while heavy duty pickup trucks and vans would have to be 10 percent more efficient each year from 2030 to 2032 and 8 percent more efficient in the years after. President Trump has long talked about getting rid of the Biden administration's efforts to promote electric vehicles. He has argued that these efforts harm consumers' freedom to choose what kinds of cars they want to drive and could lead to strife for autoworkers. Democrats, meanwhile, have argued that shifting toward more electric vehicles would mitigate air pollution and climate change — and put the U.S. at the forefront of an emerging market. While Trump has long lamented the previous administration's electric vehicle policy, the release of the administration's determination comes just one day after an explosive feud emerged between the president and Tesla mogul Elon Musk. The Transportation Department rules came alongside a separate, more stringent regulation for vehicle tailpipe emissions from the Environmental Protection Agency (EPA) that in practice has a greater effect on the vehicle market's fuel efficiency and is not impacted by the Trump administration's latest maneuver. However, the department's fuel economy rules would act as a backstop if the EPA rule was to be overturned. Republicans are attempting to eliminate that rule through their 'big, beautiful bill.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
3 days ago
- Automotive
- The Hill
Trump administration issues rule undermining Biden car fuel efficiency rules
The Trump administration on Friday took a step to undermine Biden-era rules that tightened fuel efficiency requirements for cars and trucks. The Transportation Department published an interpretive rule that says that the Biden administration improperly considered electric vehicles as a way to make vehicle fleets more efficient While this determination does not formally end the Biden-era rule, the Trump administration indicated that while the rulemaking process plays out it may not enforce the Biden-era standards. 'Pending the rulemaking process for the establishment of replacement standards, [the National Highway Traffic Safety Administration] will exercise its enforcement authority with regard to all existing… standards in accordance with the interpretation set forth in this rule,' it stated. Transportation Secretary Sean Duffy, in a written statement, accused the previous administration of trying to push an electric vehicle 'mandate.' 'Under President Trump's leadership, we are making vehicles more affordable and easier to manufacture in the United States,' Duffy said. 'The previous administration illegally used [Corporate Average Fuel Economy] standards as an electric vehicle mandate.' The Biden administration issued a rule requiring cars to be about 2 percent more fuel efficient each year while heavy duty pickup trucks and vans would have to be 10 percent more efficient each year from 2030 to 2032 and 8 percent more efficient in the years after. President Trump has long talked about getting rid of the Biden administration's efforts to promote electric vehicles. He has argued that these efforts harm consumers' freedom to choose what kinds of cars they want to drive and could lead to strife for autoworkers. Democrats, meanwhile, have argued that shifting toward more electric vehicles would mitigate air pollution and climate change – and put the U.S. at the forefront of an emerging market. While Trump has long lamented the previous administration's electric vehicle policy, the release of the administration's determination comes just one day after an explosive feud emerged between the president and Tesla mogul Elon Musk. The Transportation Department rules came alongside a separate, more stringent regulation for vehicle tailpipe emissions from the Environmental Protection Agency (EPA) that in practice has a greater effect on the vehicle market's fuel efficiency and is not impacted by the Trump administration's latest maneuver. However, the department's fuel economy rules would act as a backstop if the EPA rule was to be overturned. Republicans are attempting to eliminate that rule through their 'big, beautiful bill.'
