The National Highway Traffic Safety Administration, which oversees Corporate Average Fuel Economy (CAFE) regulations, said late on Thursday GM’s “estimate is pure speculation and inaccurate.” The agency will release its proposal to hike CAFE requirements for 2027 and beyond on Friday, sources familiar with the agency’s plans said, after the White House signed off on Tuesday.
A Biden administration official said under one scenario the auto industry could face about $3 billion in fuel economy penalties in 2032 and in another it might face essentially no penalties.
Another official told Reuters NHTSA’s preferred CAFE proposal is estimated to save consumers more than $50 billion on fuel over a vehicles’ lifetime and reduce oil use by more than 88 billion gallons through 2050. Overall, the benefits of the rule would exceed costs by more than $18 billion, the official added.
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