U.S. Regulators to Present CAFE Proposal in March

The Trump administration plans to present at the end of March a new plan for the future of the country’s fuel economy rules.

Heidi King, acting head of the National Highway Traffic Safety Administration, tells Bloomberg News the proposal will “stimulate dialog and robust listening to the data and the stakeholders.”

Her comment suggests regulators are leaning toward dialing back the regulations but first want further public discussion. President Donald Trump ordered the review early last year.

The Trump administration also is conducting talks this month with the California Air Resources Board in an effort to align the state’s fuel-efficient laws with federal rules. California and nearly a dozen other states have vowed to stick with the current standards regardless of what federal regulators decide to do.

Carmakers agreed in 2011 to meet corporate average fuel economy goals that would raise average fleet efficiency to more than 50 mpg—or about 36 mpg under real-world conditions—by 2025. The feasibility of the targets and their timetable was to be reevaluated no later than April 2018.

NHTSA and the Environmental Protection Agency administration conducted the midterm review in late 2016. Their conclusion: The original goals remain practical and cost-effective.

Carmakers disagree. Through their Alliance of Automobile Manufacturers, they claim the assessment was flawed by “indefensible assumptions” and “inadequate” analysis. The companies insist the targets have become unrealistic in an era of cheap fuel, booming demand for relatively inefficient trucks and little consumer interest in electrified vehicles.