For media inquiries, contact: Sasha Tenenbaum, stenenbaum@calstart.org

Today, the National Highway Transportation Safety Administration introduced a proposal to substantially reduce the Corporate Average Fuel Economy (CAFE) standards, a program established by Congress in 1975 to incentivize more efficient vehicles. If finalized, the newly proposed standards would lower the baseline efficiency requirements through the end of this decade to levels achieved years ago.

In response to this breaking news, CALSTART Federal Policy Director Levi Kamolnick issued the following statement:

Levi Kamolnick, Federal Policy Director, CALSTART

“This proposed change to the CAFE program would pave the way for a future dominated by more fuel-intensive vehicles. CAFE standards have saved an estimated $5 trillion in fuel costs for American consumers and served to help spur innovation and technology. Further improvements are possible and needed since transportation is still the second highest expense for a typical American household, and higher fuel expenses increase costs for businesses.

“When combined with other recent regulatory changes being proposed at the federal level, this proposal compounds a significant shift in direction to which the industry will need to adjust at incredibly short notice, creating uncertainty and undermining investor confidence.

“Private sector innovation occurs most readily in an environment of certainty, and by upending that certainty we risk ceding economic ground in the increasingly competitive global automotive industry. Drastic regulatory changes undermine the planning and investments fleets and manufacturers have already made and ultimately undermine the U.S. transportation sector’s growth and global competitiveness.

“Manufacturers have already demonstrated their capacity to meet the current standards with a range of products that support consumer choice, and in so doing have proven that keeping standards at the current baseline for another ten years simply does not align with the innovative potential the American automotive sector is clearly capable of. Ambitious, data-driven, and affordable CAFE standards help keep the U.S. automotive industry focused on creating a product that not only serves its purpose but saves consumers costs in the long run.  We look forward to working with NHTSA as the rulemaking process moves forward.”

Background

The Corporate Average Fuel Economy (CAFE) program was established by Congress in 1975 to improve the efficiency of the nation’s vehicle fleet, reduce dependence on petroleum, and lower fuel costs for consumers. Over the past fifty years, the standards have supported steady improvements in engine efficiency and helped guide automakers’ long-term investments in fuel-saving technologies. Predictable, data-driven standards are a key element of market certainty for manufacturers and fleets planning future product and investment strategies.

About CALSTART

A mission-driven industry organization focused on transportation decarbonization and clean air for all, CALSTART has offices in New York, Michigan, Colorado, California, Florida, and Europe. CALSTART is uniquely positioned to build the national clean transportation industry by working closely with its more than 210 member companies and building on the lessons learned from the major programs it manages for the State of California. CALSTART manages more than $1 billion in vehicle incentive and technical assistance programs in the United States and is leading a global effort to build the zero-emission commercial vehicle market.