Trump Administration Rolls Back EPA Fuel Efficiency Standards

The Trump administration has started the process of reversing strict vehicle fuel efficiency standards put in place by the Biden administration. The Environmental Protection Agency (EPA), led by Administrator Lee Zeldin, announced the move as part of a larger effort to cut back on what it calls excessive regulatory costs impacting the American auto industry.

These Biden-era rules, finalized in March 2024, were designed to significantly reduce carbon emissions from light, medium, and heavy-duty vehicles starting with the 2027 model year. The standards aimed for nearly a 50% reduction in greenhouse gas emissions for light-duty vehicles and a 44% reduction for medium-duty vehicles by the 2032 model year. While the Biden administration argued the regulations would bring billions in societal and public health benefits, critics claimed they imposed high costs on automakers and limited consumer choice.

“The American auto industry has been hamstrung by the crushing regulatory regime of the last administration,” said Zeldin. “As we reconsider nearly $1 trillion of regulatory costs, we will abide by the rule of law to protect consumer choice and the environment.”

The rollback is being pursued under the Administrative Procedure Act, which requires public notice and comment before any final decisions are made. This move follows President Trump’s campaign promise to give consumers the freedom to choose between electric, hybrid, and traditional gasoline or diesel vehicles.

In the second half of 2024, electric vehicle (EV) sales accounted for just 8.7% of new car purchases, with hybrid and electric vehicles combined making up about 20% of the new-car market, according to Kelley Blue Book. With EV demand still lagging, many consumers and automakers have expressed concerns about being pushed toward electrification too quickly.

As the EPA begins rolling back these fuel efficiency mandates, the administration hopes to balance environmental goals with economic realities, ensuring that both the industry and consumers benefit from a wider array of vehicle options.