Key facts
- The Trump administration finalized new CAFE standards in 2020, reducing the target for model year 2026 from 46.7 mpg to 40.4 mpg.
- The Obama administration had set a goal of 54 mpg by 2025.
- The new rule includes a tightening of the light truck loophole, changing classification criteria to reflect intended use more accurately.
- Under the new rule, the fleet mix could shift from approximately 70% light trucks and 30% passenger vehicles to around 70% passenger cars and 30% light trucks by model year 2030.
The Trump administration finalized new Corporate Average Fuel Economy (CAFE) standards in 2020 that reduced the target for model year 2026 from 46.7 mpg to 40.4 mpg. This rollback reversed goals set by the Obama administration in 2012, which aimed for 54 mpg by 2025.
The new rule also includes a tightening of the light truck loophole. Previously, weaker standards for light trucks encouraged manufacturers to classify more vehicles as trucks, leading to larger and less fuel-efficient SUVs. The updated regulations aim to change classification criteria starting in model year 2030 to accurately reflect a vehicle's intended use, potentially shifting the fleet mix from approximately 70% light trucks and 30% passenger vehicles to around 70% passenger cars and 30% light trucks.
The Biden administration has since worked to reverse some of these changes, promoting smaller and lighter vehicles. Albert Gore, executive director of the Zero Emissions Transportation Association, criticized the rollback, stating that lowering standards during a period of high transportation costs for families will exacerbate financial struggles and risks leaving American industry behind in the global auto market.