The Trump administration’s EPA administrator has announced the rollback of strict fuel economy standards that were established during the Obama era, reducing the pace at which automakers are required to improve the average fuel efficiency of their vehicle fleets. The deregulatory action has been framed by the administration as relief from requirements that were described as technically unrealistic and economically harmful to manufacturers and consumers. Environmental groups have announced their intention to challenge the rollback through legal channels, setting up a regulatory battle that could occupy the courts for years.
The fuel economy standards have been a flashpoint in energy and environmental policy for decades, with each administration taking different positions on how aggressively to require efficiency improvements and what technologies should be credited toward compliance. The practical impact on the automotive market is significant because fuel economy requirements influence product development decisions that play out over multi-year product cycles. Automakers will be watching carefully to see whether the rollback survives legal challenge before fully integrating the new standards into their planning processes.
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