The Washington Examiner published an editorial titled “Trump just made cars more affordable” on Oct. 3. I couldn’t agree more. President Donald Trump’s Corporate Average Fuel Economy standards reset is an affordability win for consumers.
The Biden administration stretched the CAFE program far beyond its original purpose and used fuel-economy requirements to pursue a de facto electric vehicle mandate. The Biden administration’s fuel economy targets required automakers to more than double average fleet-wide fuel economy in less than 10 years for conventional gasoline and diesel vehicles. By adopting these unworkable standards, the regulatory goal was to manipulate the types of cars available to consumers, exacerbating the effects of a program that has gradually increased sticker prices for new motor vehicles and outlived any strategic use Congress had intended.
If allowed to proceed, the costs incurred from noncompliance with these Biden-era CAFE standards would have been passed on to consumers, thereby placing an immense financial burden on families who rely on affordable internal combustion engine vehicles for work and travel. Despite Biden officials’ attempts to rewrite their record on affordability, continuing these punitive regulations would have distorted the automobile market, reduced vehicle choice, and driven up the cost of automobiles for hardworking families, while failing to meaningfully insulate Americans from volatility in global oil markets.
Consumers should be able to select the car or truck that best meets their family, work, and transportation needs. The Trump administration’s recent adjustment of the CAFE standards is estimated to reduce the cost of buying a new vehicle and save taxpayers billions of dollars. Specifically, the administration projects, as the initiative gives automakers the flexibility to manufacture cars the public wants and encourages new car sales, it will reduce the cost of a new vehicle by $1,300 for families, save the public $138 billion over the next five years, prevent more than 300,000 serious injuries, and save 1,900 lives. It also builds on the Working Families Tax Cuts’s elimination of the civil monetary penalties for CAFE violations, an important achievement that should set the stage for a wholesale repeal of the underlying statutory program.
Over the summer, I introduced the Restoring Affordability in Automobile Manufacturing Act, which would eliminate this outdated program starting model year 2029 and bar any future administration from using CAFE standards to pursue unrelated climate goals. Congress established the CAFE program in 1975, following OPEC’s oil embargo to reduce petroleum consumption, improve vehicle fuel economy, and strengthen our nation’s energy security. While many drivers have reduced their fuel consumption habits since this statute was enacted, CAFE standards have driven up the sticker price of new automobiles through cumbersome mandates on motor vehicle design. These requirements under CAFE’s dual-fleet structure have gradually incentivized our nation’s automobile manufacturers to offshore their operations. Moreover, the energy-security landscape has changed significantly since the 1970s as the United States has dramatically increased domestic oil production and reduced its reliance on imported petroleum, further undermining any need for their regulatory continuation.
WHY YOU’RE PAYING A ‘VIBES TAX’ AT THE FUEL PUMP
When writing in support of the RAAM Act, Americans for Prosperity further explained the need for the legislation: “Since the 1970s, advances in engine technology, fuel refinement, and strong consumer demand for fuel efficiency have already held automakers accountable for delivering products that meet the market’s needs. Increasingly, however, CAFE standards and related federal programs have been weaponized to eliminate vehicle choices from the marketplace — a marketplace whose regulation properly belongs to the federal government. Affordability, reliability, and consumer choice remain paramount concerns. Forcing certain technologies on the market through regulatory mandates is fundamentally anti-consumer, especially concerning electric vehicle mandates.”
Unlike the Biden-era mandates, both the Trump administration’s CAFE reset and the RAAM Act adopt a federal automobile policy based on trusting and empowering consumers, rather than federal bureaucrats, to make their own purchasing decisions.
Mike Crapo is a Republican U.S. senator representing the people of Idaho.
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[ H/T Washington Examiner ]
