The Trump Administration has introduced new Corporate Average Fuel Economy (CAFE) standards, which have been criticized for being virtually meaningless. The Department of Transportation (DOT) recently issued CAFE standards – fuel efficiency standards for new cars – rolling back more rigorous standards from the Biden Administration. The DOT applied considerable ingenuity to ensure that fuel efficiency will stagnate for the foreseeable future, benefiting the oil industry.
CAFE Standards and Energy Conservation
The main purpose of the CAFE law was to reduce energy consumption by requiring greater fuel efficiency. However, the current DOT does not see the point of conserving oil, citing the fact that the US is a net exporter. Millions of Americans can testify that, while disruptions in world energy markets no longer result in shortages, they still cause serious economic pain.
Greater fuel efficiency would reduce the pocketbook impact of gas prices, making it a top priority to free up resources for other uses. If energy supply is a national emergency, as Trump says, increasing energy efficiency should be a top priority to free up resources for other uses.
Limiting Consumer Options and Carmaker Decisions
The Trump DOT is unhappy about limiting the options available to consumers or constrain carmakers’ decisions regarding vehicle features. However, the basic premise of the statute is that the government needs to impose fuel efficiency standards to achieve the maximum feasible average fuel economy level.
The statute calls for the maximum fuel efficiency the industry can feasibly achieve, not the fuel efficiency that consumers or the industry prefer.
Legal Interpretations and Electric Vehicles
The DOT’s legal interpretations have been criticized for being twisted and contradictory.
The treatment of electric vehicles (EVs) is also problematic. The legislation requires DOT to consider four factors in issuing regulations, including technological feasibility, economic feasibility, other government regulations, and the need to conserve energy. Subsection (h) says that DOT can’t consider the fuel economy of EVs “in carrying out” subsection (f). The statute clearly allows DOT to consider the lower maintenance costs of EVs, which are unrelated to fuel economy.
The DOT’s actions have been described as a “master class in pretending you’re implementing a law while totally sabotaging it.”