The Trump administration is set to announce a major rollback of federal fuel-economy requirements for new cars and light trucks, giving automakers more freedom to build gas-powered vehicles.
President Trump announced the decision Saturday on Truth Social, saying he had “just approved new Fuel Economy Standards.” Transportation Secretary Sean Duffy said the administration would formally announce the change Monday.
Trump has said the fuel economy rollback will help Americans by cutting thousands of dollars from the price of new cars.
Under the Biden administration, automakers faced a 50.4 miles per gallon standard. A proposal issued in December would have lowered the requirement to an average of 34.5 miles per gallon for cars and light trucks in model year 2031.
Congress has already removed fines for automakers that fail to meet the mileage standards, saving the industry hundreds of millions of dollars.
The decision matters in California because the state has spent years pursuing tougher automobile pollution rules and promoting electric vehicles.
Congress last year blocked California from setting its own stricter limits on car emissions, further narrowing the state’s ability to set its own direction for the auto industry.
In February, the Environmental Protection Agency ended all federal limits on planet warming pollution from cars. Congress also repealed tax credits of up to $7,500 for buyers of new electric vehicles.
The change was announced as Americans have been getting hammered by high gas prices.
The national average for a gallon of regular gas hit $4.48 on Saturday, according to AAA, up from $3.14 per gallon a year ago.
The price in drastically higher in California, where a gallon of regular gas reached $6.33 on Saturday, and increase from $4.64 per gallon a year ago.
The Golden State has been particularly vulnerable to gasoline price spikes because of its isolated fuel market, refinery closures and dependence on imports.
Drivers pay a “California premium” for their gas that includes higher state excise taxes, more sales tax and local fees, and costs for climate programs unique to the state.
California also requires a special and more costly fuel blend designed to prevent smog that only the state’s refineries and specific Asian countries can produce.
The shutdown of oil refineries in the state has dwindled supply and decreased California’s energy sustainability while pushing up prices, critics say.
That means the new federal rollback will be largely symbolic in financial terms, but it gives manufacturers even more reason to focus on larger pickups and SUVs that tend to produce greater short term profits.
The state has been one of the biggest forces behind stricter vehicle pollution rules and the push toward electric cars.
