White House Finalizing Proposed Fuel Economy Freeze

The Trump administration may announce a plan that would freeze U.S. emission standards at 2020 levels as early as next week, according to media reports.

The proposal would prevent the currently mandated sharp decline in allowable carbon dioxide emissions from the 2020 through 2026 model years.

CO₂ output is directly related to fuel consumption in piston-powered vehicles, so less CO₂ output means greater fuel economy. Cutting CO₂ under the existing regulatory schedule would boost average fuel economy in real-world driving conditions from 25 mpg last year to about 36 mpg in 2026.

The White House also is likely to challenge California’s right under the Clean Air Act of 1970 to set its own emission limits. California has declared that it intends to enforce the currently mandated federal standards through 2026, including tighter CO₂ limits, regardless of what federal regulators do.

But the Trump administration has signaled it will argue that California can’t impose CO₂ limits that are tougher than those allowed by the revised federal regulations. That’s because doing so would create a de facto fuel economy target that exceeds the national standard. Federal law dictates that only the National Highway Traffic Safety Administration can set fuel economy standards.