The Trump Administration has been making waves by publicly announcing a planned rollback of the Corporate Average Fuel Economy (CAFE) standards put in place by the Obama Administration. In 2011 the Obama Administration ruled that auto manufacturers had to begin producing vehicles with better fuel efficiency that achieved over 50 miles per gallon in an effort to reduce greenhouse gases to 26-28% by the year 2025. The EPA ruling under the Obama Administration included a review in April 2018, allowing the Trump Administration to reopen the discussion.
The announcement from the Environmental Protection Agency is expected to come this week. U.S. automakers have urged President Donald Trump to revise the Obama Administration standards making vehicle production less costly to the American consumer. American consumers have shown a preference for larger, less fuel-efficient vehicles which are more profitable for manufacturers. Although automakers want relief, they do not want to face higher costs if they have to manage fuel economy separately by each state.
As April unfolds, it is clear that there is a large chasm to cross for total compliance with the Obama Administration’s ruling. In order to reach the 50+ mpg threshold, national fuel efficiency would have to double.