A new provision in the Senate reconciliation bill would repeal the Corporate Average Fuel Economy (CAFE) standards, effectively ending one of the federal government’s longest-running programs to manage gasoline prices and air pollution. The rules, which have been in place since 1975, require automakers to improve the fuel efficiency of new vehicles sold in the US.
The CAFE standards have helped push fuel efficiency records high over the past 20 years, despite consumers’ preference for crossovers and SUVs. However, the Republican reconciliation bill would eliminate fines for automakers that sell too many gas-guzzling vehicles, making compliance with the law optional.
Experts say the move is a significant blow to the program, which has been credited with saving consumers billions of dollars in gasoline costs and preventing millions of asthma attacks and infant deaths over time. The Biden administration had targeted the fuel economy rules as part of a broader effort to roll back energy policies.
The new bill sets all fines issued under the CAFE program to zero, effectively neutering the government’s ability to enforce the standards. Opponents argue that the regulations increase car prices and encourage automakers to build less profitable vehicles. Supporters claim the standards are necessary to keep gasoline prices low for all Americans by encouraging fuel efficiency across the board.
The move has sparked concern among environmental groups and advocates for public health, who fear it will lead to more air pollution and increased greenhouse gas emissions. The bill’s impact on the auto industry is also unclear, as some experts predict a significant increase in gas-guzzling vehicles could lead to higher costs for consumers and the environment.
Source: https://heatmap.news/politics/corporate-average-fuel-economy-senate-budget-bill