Fuel Efficiency Rule Expected After Labor Day as Automakers Make Deal with California

摘要

The Trump administration will delay its final version of the Safer and Affordable Fuel Economy (SAFE) rule until sometime after Labor Day, even though the rule had been expected by the end of the summer. The SAFE rule will rollback Obama-era fuel economy standards for Model Years (MY) 2021-2026 as well as challenge California's authority to set its own fuel economy standards. The Obama administration's rule set the fleet wide average passenger and light truck fuel economy standards to 54.5 miles per gallon (mpg) by MY 2025, whereas the SAFE rule is expected to leave the standard at roughly 37 mpg. California, along with thirteen other states, has signaled it will challenge the SAFE rule. Therefore, a delay in finalizing the rule means it will likely remain tied up in the courts during the November 2020 presidential elections.