The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) has issued a final rule titled "Resetting the Corporate Average Fuel Economy Program." This new rule clarifies NHTSA's authority to adjust regulations concerning fuel economy standards, highlighting statutory requirements that were allegedly overlooked by the previous administration.
According to U.S. Transportation Secretary Sean P. Duffy, "Under President Trump’s leadership, 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."
The rule outlines factors that are prohibited from consideration when setting maximum feasible fuel economy standards under various laws, including the Energy Policy and Conservation Act of 1975 and the Energy Independence and Security Act of 2007. It also details NHTSA's authority to align the CAFE program with statutory requirements, in line with President Trump's "Unleashing American Energy" Executive Order and Secretary Duffy's "Fixing the CAFE Program" Memorandum.
Additionally, the rule interprets NHTSA's authority regarding a commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program. This interpretation aims to establish a legal foundation for compliance with existing laws.
While this rule does not alter current CAFE or medium- and heavy-duty standards, it sets a framework for future standard replacements. During this process, NHTSA will enforce all existing standards according to this new interpretation.
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