What: On December 5, 2025, the U.S. Department of Transportation (DOT) and National Highway Traffic Safety Administration (NHTSA) proposed to substantially recalibrate the Corporate Average Fuel Economy (CAFE) program by amending its fuel economy standards for light-duty vehicles for model years (MYs) 2022-2026 and 2027-2031. The proposed new fuel economy standards would apply to light-duty vehicles (cars and light trucks) powered by gasoline and diesel fuels, including non-plug-in hybrid vehicles (but not battery-powered electric vehicles (EVs). The proposed rule is intended to fulfill NHTSA’s statutory obligation to set CAFE standards at the maximum feasible level that the agency determines vehicle manufacturers can achieve in each model year, balancing four key factors: technological feasibility, economic practicability, the need of the Nation to conserve energy, and the effect of other Federal regulations on fuel economy.
Why: NHTSA seeks public comment on a range of regulatory alternatives for each fleet, consistent with the agency’s obligations under the Administrative Procedure Act (APA), National Environmental Policy Act (NEPA), and Executive Order 12866. The agency estimates that the proposed rule would reduce the average up-front vehicle costs due to CAFE standards by approximately $900, cutting in half what consumers might expect to pay under current CAFE standards.
Action: Read the DOT/NHTSA proposed new CAFE/SAFE rule and submit comments by January 20, 2026.
Further: On December 12, 2025, NHTSA announced it will be hosting a virtual public hearing to discuss the proposed rule to be held on January 7, 2026. The public hearing will also allow the public to provide oral comments on the agency’s Draft Supplemental Environmental Impact Statement (Draft SEIS) that accompanies the proposed rule. An additional virtual session will be held on January 8, 2026, if necessary, to accommodate the number of people who sign up to speak. Participants will be given 3 minutes to provide oral testimony.
FEDERAL REGISTER NOTICE:
SUBMIT COMMENTS:
PUBLIC MEETING NOTICE:
Public Hearing for Corporate Average Fuel Economy Standards
REGISTER TO ATTEND:
Corporate Average Fuel Economy Standards Public Meeting
CONTACT: Bruce Lundegren
EMAIL: bruce.lundegren@sba.gov
TAG(S): DOT
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