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US expected to declare Biden fuel economy rules exceeded legal authority

  • Officials indicated that in June 2025, the Transportation Department will likely rule that the Biden-era fuel economy standards set by NHTSA overstepped legal boundaries by incorporating electric vehicles into the calculations.
  • This action follows criticism from 120 Republican lawmakers last year who argued that the standards effectively mandate electric vehicles and exceed NHTSA's authority.
  • The interpretive rule increases CAFE standards to approximately 50.4 miles per gallon for light-duty vehicles by the year 2031, up from the present level of 39.1 mpg, with the goal of cutting gasoline usage by 64 billion gallons.
  • Transportation Secretary Sean Duffy submitted the rule for White House review, while House Republicans recently proposed repealing fuel efficiency rules and killing the EV tax credit.
  • This regulatory challenge suggests possible revisions to US vehicle emissions policies and fuel economy standards that could reshape automaker requirements and market dynamics.
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US expected to declare Biden fuel economy rules exceeded legal authority

The U.S. Transportation Department is expected to declare that fuel economy rules issued under then President Joe Biden exceeded the government's legal authority by including electric vehicles in setting the rules, automaker officials said Monday.

·United Kingdom
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Market Screener broke the news in on Monday, May 19, 2025.
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