US to Finalize Sharply Lower Fuel Economy Standards Through 2031

The US Transportation Department is set to finalize sharply lower vehicle fuel economy standards through 2031, reversing a Biden administration push that had sought to compel automakers to build more electric vehicles. Officials said the new rules will be unveiled on Monday.

President Donald Trump said he had approved the revised standards for cars and trucks, describing them as a measure that will lower the price of new vehicles. Transportation Secretary Sean Duffy called the move "a major victory for America's auto workers."

Under Democratic President Joe Biden, the government had raised required fuel efficiency for cars by 8% annually for model years 2024 and 2025, 10% for 2026, and 2% annually from 2027 to 2031. Biden's rules aimed to reduce oil use, improve efficiency, and accelerate electric vehicle production.

The Trump administration in December proposed retroactively revising down the 2022 model year fuel economy standard and then raising it between 0.25% and 0.5% annually through 2031. The Transportation Department proposed a fleetwide average of 34.5 miles per gallon by 2031, down from 50.4 miles per gallon under Biden.

The department estimated its proposal would cut average new vehicle costs by $930 each. However, it would increase fuel consumption by around 100 billion gallons through 2050, raise fuel spending by $185 billion, and increase carbon dioxide emissions by about 5%.

The new standards are expected to make it easier for automakers to sell less efficient vehicles. The move comes as American drivers are grappling with sharply higher fuel prices since the start of the US-Israeli war with Iran at the end of February.

Pete Buttigieg, who headed the Transportation Department under Biden, criticized the change. "Lowering standards will accelerate what (Trump) has already been doing: handing the clean tech future to China and forcing Americans to pay more at the pump," he said.

Biden had focused on reducing US greenhouse gas emissions and fossil fuel use, accelerating a transition to clean energy, and making the United States a global leader in clean-energy technology and manufacturing.