Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
WASHINGTON—On Monday, the National Highway Traffic Safety Administration (NHTSA) announced a rollback of federal corporate average fuel economy (CAFE) standards, reducing the fleet-wide average from 50.4 to 34.9 miles per gallon (mpg) by model year (MY) 2031.
First established in the 1970s in response to the Arab oil embargo, the CAFE standards have spurred innovation and saved Americans money on fuel. For more than two decades, CAFE was set at 27.5 mpg beginning with MY 1985 vehicles. Since that time, there have been many swings in standards, from a reduction to 26 mpg in 1986 to the most recent final rule set in 2024, which would require an industry fleet-wide average of 50.4 mpg in MY 2031. These previous final standards were set based on the latest research of the impacts of car and truck emissions and would demonstratively improve public health and help drive innovation and the creation of new jobs. And, according to a 2020 report, the policy reduced oil imports and saved two trillion gallons of gasoline, enough to fuel all the light-duty vehicles in the United States for 15 years.
In response, Electrification Coalition Executive Director Ben Prochazka issued the following statement:
“Oil’s monopoly on transportation is a major risk to American economic and national security, as evidenced by the war in Iran driving up gasoline and diesel prices. At a time when consumers and businesses are paying more at the pump, the United States should do more to reduce dependence on oil, not less.
“Strong fuel economy standards benefit American drivers, businesses, and our economy. When vehicles consume less fuel, families spend less at the pump, businesses face lower operating costs, and the United States becomes less vulnerable to global oil price volatility. Cutting these standards creates market uncertainty, drives up fuel costs for consumers, and limits our global competitiveness.
“CAFE standards have a long, bipartisan history of support, and have always increased benefits to American drivers, businesses, and our economy. Despite the incredible technological advances in EV and hybrid technology, these proposed standards are less ambitious than those passed under the George W. Bush administration in 2007.
“Electric vehicles (EVs) remain the most effective path toward reducing oil dependence in the transportation sector. Electricity is almost entirely domestically produced from diverse sources, making its price less volatile than oil.
“The rest of the world is increasingly shifting to electric transportation, but the United States is falling behind China and other global competitors. To ensure the long-term growth of the American auto industry and create jobs, the United States should not roll back fuel economy standards.
“We urge the administration to reconsider this rollback to protect American competitiveness and consumers’ wallets. The Electrification Coalition remains committed to working with policymakers on both sides of the aisle to advance policies that strengthen American manufacturing, reduce oil dependence, and lower costs for drivers.”
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org