On March 31, 2020, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) issued a final rule that weakens Obama-era fuel efficiency guidelines by requiring corporate average fuel economy (CAFE) and carbon emissions standards to increase 1.5% from 2021 to 2026 rather than 5% annually.[1] The EPA and NHTSA estimate the rule will reduce the sticker price of new cars by about $1,000, but consumers can still, by choice, buy more efficient vehicles.

The March rule is phase two of the Safer Affordable Fuel-Efficient (SAFE) rules. The first phase, issued in fall 2019, revokes states' authority to issue their own fuel standards, specifically targeting California’s fuel standards which are considered to be the biggest driver of electric vehicle (EV) deployment. In September 2019, 23 states including California sued the Trump Administration over the rule.[2] Automakers are split in their support of the lawsuit and California’s standards. Ford, Honda, BMW and Volkswagen support states' rights to set their own standards, but GM, Toyota, and Fiat Chrysler have sided with the Trump Administration's push for a single national standard. The lawsuit is currently pending, and advocates expect litigation on the second rule as well.

[1] https://www.nhtsa.gov/press-releases/safe-final-rule

[2]https://oag.ca.gov/system/files/attachments/press_releases/California%20v.%20Chao%20complaint%20%2800000002%29.pdf