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NHTSA Proposes New Fuel Economy Standards

The National Highway Traffic Safety Administration (NHTSA) plans to propose new fuel economy standards for the 2027 model year and beyond in April, which could greatly impact the cars on American roads.


The proposal will be released by late April, and the agency hopes to finalize it within a year. It will also have regulatory alternatives included.

EPA's Emission Standards

The Environmental Protection Agency (EPA) has announced that they will introduce companion stringent vehicle greenhouse gas emissions standards from the 2027 through 2030 model year by March. It remains to be seen if the new rules align with California's plan to phase out gasoline-powered vehicles by 2035 and push for more zero-emission vehicles.

Biden's 50% EV Goal

President Joe Biden aims for 50% of all new vehicles sold in 2030 to be electric or plug-in hybrid models but has yet to support California's 2035 plan. The Trump Administration rolled back President Obama's standards in 2020, and the Biden Administration has reversed this and pushed for stricter regulations in 2021.

NHTSA Reinstates Penalties for Automakers

In March, NHTSA reintroduced penalties for auto manufacturers who fail to meet Corporate Average Fuel Economy (CAFE) standards for 2019 model years and beyond. The penalties had been under review and subject to court challenges. The auto industry estimates the penalties could cost them over $1 billion annually.