US Rolls Back Biden-Era Fuel-Economy Rules, Triggering Split Reactions

The Trump administration unveiled a plan to ease U.S. fuel efficiency rules, reversing the standards set during President Joe Biden's time in office. The move aims to lower costs for car buyers and shift away from aggressive electric-vehicle targets, though critics warn it could boost emissions and slow electric adoption.

What the change involves

The proposal would set a lower fuel economy target of about 34.5 miles per gallon (mpg) for new cars by model year 2031, instead of the earlier goal of about 50 mpg. The current average among new vehicles is roughly 27 mpg. The shift would reduce the annual efficiency improvement assumed for passenger cars from about 2% to a slower pace.

Ending the credits program

The plan would also end a system that lets automakers earn and trade credits with rivals when they meet high efficiency standards. The administration says this program had helped artificially boost demand for electric vehicles.

Industry and environmental reactions

Environmental groups, including the Sierra Club, warn that the rollback would raise emissions and increase costs for families in the long run. They caution it could keep older, more polluting cars on the road for years, affecting public health and particularly children and seniors.

Ford chief executive Jim Farley welcomed the move, describing it as aligned with what customers want and a practical shift for the market.

Why this matters for emissions and consumers

Transportation remains the largest source of greenhouse gas emissions in the United States, accounting for more than 28% of total emissions in 2022 according to the Department of Energy. The Biden-era plan had aimed to cut carbon emissions by hundreds of millions of metric tons by 2050 if fully implemented, with electric vehicle sales playing a key role in meeting the targets.

What happens next

The change is still subject to formal rule-making, meaning final details could change before it becomes law. The administration estimated that the rollback could save buyers about $1,000 on the price of a car, compared with the Biden policy's projected fuel-cost savings of around $600 over a vehicle's lifetime.

Expert commentary

Katherine Garcia of the Sierra Club says the rollback would raise emissions and health risks for communities. Ford's Jim Farley counters that the changes reflect what customers want and are good for the market.

Short summary

In summary, the proposal eases the pace of improving fuel efficiency and ends the credits trading mechanism. Supporters say it lowers upfront costs and matches consumer demand, while critics warn of higher emissions and longer reliance on older, dirtier cars. The policy remains under rule-making and could influence future electric-vehicle adoption and auto industry investments.

Key insight: The rollback signals a shift toward preserving traditional engines in the near term, potentially lowering prices but risking higher emissions. Source: BBC News