According to CarBuzz, it is the Biden administration's CAFE rules that a Trump official has declared "illegal". US Transportation Secretary Sean Duffy said in a statement that "the previous administration illegally used the CAFE standards as an electric vehicle mandate - which increased the prices of new cars and reduced safety. Resetting the CAFE standards in line with Congress's intent will reduce vehicle costs and ensure that Americans can afford the cars they want".
The Trump administration argues that when Congress created the CAFE standards in 1975, the law, called the Energy Policy and Conservation Act of 1975, specified that the standards should be set at the "maximum feasible level". There were no significant hybrid and electric vehicles on the market at that time.
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Therefore, the administration argues that the Biden administration's inclusion of electric and hybrid vehicles in the calculation of these standards is a violation of the law. They say there is a “legal prohibition” on considering dedicated alternative and dual-fuel vehicles and credit trading when setting CAFE standards.
The new rule released by the Trump administration, called “Resetting the Corporate Average Fuel Economy Program,” does not directly change the current CAFE standards. Instead, it directs NHTSA to set new rules that can no longer take hybrid or electric vehicles into account.
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Because ultra-low and zero-emission vehicles are excluded, it can be assumed that these new rules will be significantly less stringent than current levels. It’s worth noting that this regulation is not the only activity from Washington regarding vehicle emissions regulations; the US Senate voted to repeal California’s “EV mandate,” and a new Republican tax bill proposes eliminating federal tax credits for EVs and imposing taxes on EV and hybrid owners.
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