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President Trump announces plan to roll back fuel economy standards

MICHEL MARTIN, HOST:

The Trump administration continues to remove incentives for electric vehicles and cleaner gas cars. The latest plan is to change fuel economy standards. Those are the rules that push automakers to produce cars with better gas mileage. NPR's Camila Domonoske reports.

CAMILA DOMONOSKE, BYLINE: Fuel economy standards have been on a bit of a roller coaster over the last few presidencies. The Obama White House made them much more strict. Then the first Trump White House rolled them back. The Biden presidency, with its focus on fighting climate change and reducing the use of oil, made them more ambitious again. Not really a surprise what happened yesterday. Here's President Trump sitting next to Transportation Secretary Sean Duffy in the Oval Office.

(SOUNDBITE OF ARCHIVED RECORDING)

PRESIDENT DONALD TRUMP: Now, under the new rules being issued today by Secretary Duffy, the Department of Transportation will rescind the Biden fuel economy prices. And I hate to say that because they were really not economy. They were really - they were anti-economy.

DOMONOSKE: These rules require automakers to make new cars more efficient every year or face fines. The proposed new rules would reset standards to where they were in 2022. And then instead of requiring 2% improvements in efficiency each year, they'd require just half a percent. Environmental and public health groups have called this a step backward for human health and the environment. President Trump framed it as a win for affordability. He argues that the technology needed to make cars more efficient drives up prices.

(SOUNDBITE OF ARCHIVED RECORDING)

TRUMP: They were horrible, what they were doing to the costs, and actually making the car much worse.

DOMONOSKE: Different types of clean car technology can cost more upfront, but economic analyses have found that's outweighed by how much drivers save on gasoline. This is still a proposal, now in the public comment phase. Once finalized, this policy shift is likely to boost the bottom lines of automakers, who could sell as many big pickups as they like without worrying about penalties. Although, actually, the Trump administration already eased that worry. This summer, the One Big Beautiful Bill Act erased all the penalties for companies that fell short of these fuel economy standards. So in that sense, the rules were already irrelevant. So why change them? Well, the Trump administration is trying multiple tactics to make sure the policy changes stick even after a change in presidents, anticipating another twist of the roller coaster.

Camila Domonoske, NPR News.

(SOUNDBITE OF NEBULA BREEZE'S "CLAWS OF UNITY") Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Camila Flamiano Domonoske covers cars, energy and the future of mobility for NPR's Business Desk.