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Sean Duffy Announces Lower Vehicle Fuel-Economy Standards to Prioritize Consumer Demand

Transportation Secretary Sean Duffy stated that the administration will soon finalize significantly lower vehicle fuel-economy standards, reversing the previous administration's push for higher efficiency. The National Highway Traffic Safety Administration proposed a reduction in fleetwide requirements for model years 2022 through 2031, aiming for a fleetwide average of 34.5 miles per gallon by 2031, down from the 50.4 miles per gallon target set under former President Joe Biden. Sean Duffy described the new standard as a common-sense approach that allows automakers to build vehicles that Americans want to buy rather than models pushed by the previous administration. The change provides manufacturers with more flexibility in product planning, allowing them to balance electric vehicles, hybrids, and internal combustion vehicles while supporting the continued production of larger trucks and SUVs. Additionally, the National Highway Traffic Safety Administration concluded that it does not have the authority to set fuel economy standards for heavy-duty engines as separate components. The agency clarified that while an engine impacts a vehicle's fuel economy, it is not a vehicle itself. The agency will revise the program through a separate notice-and-comment rulemaking process.

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