US vehicle fuel economy standards reduction proposal

The US administration has proposed a significant reduction in federal vehicle fuel economy and consumption standards, reversing previous regulatory frameworks. Under the proposed SAFE III regulation covering model years 2022 through 2031, the administration aims to lower the fleetwide average target to 34.5 miles per gallon by 2031, down from a previous target of 50.4 miles per gallon.

Transportation Secretary Sean Duffy stated the shift is intended to align manufacturing with consumer demand, asserting, “We want Detroit to build cars that Americans want to buy — not cars that Democrats want Washington to build.” The new rules would replace aggressive annual efficiency increases with smaller increments of between 0.25 percent and 0.5 percent.

While the National Highway Traffic Safety Administration (NHTSA) estimates these changes could reduce the technological cost per vehicle by approximately 44%, potentially saving buyers around $930, the proposal carries environmental and economic trade-offs. Projections suggest the move could lead to an additional 360 billion liters of gasoline consumption through 2050, an increase in fuel costs by $185 billion, and a 5 percent rise in carbon dioxide emissions.