Walberg and Republicans want to cancel new fuel economy rules

Washington — Republicans in Congress, led by Michigan U.S. Rep. Tim Walberg, have introduced bills to reverse ambitious new vehicle fuel economy rules issued by the Biden administration.

The administration’s Corporate Average Fuel Economy standards, commonly known as CAFE, were finalized in June and by 2032, automakers’ new vehicle fleets must achieve an average fuel economy of 53.5 miles per gallon.

“The extreme CAFE (National Highway Traffic Safety Administration) standards are the latest attempt by the Biden-Harris administration to take away choice from American consumers and mandate the use of electric vehicles,” the Tipton Republican said in a statement about his bill.

While specific regulatory issues are not typically popular topics, regulations affecting the future of the U.S. auto industry have become a major issue in the 2024 presidential election.

Republicans — led by presidential candidate Donald Trump — have consistently criticized President Joe Biden’s efforts to significantly cut emissions and encourage a shift to electric vehicles as ways to combat climate change and keep pace with China, which is becoming the world’s largest producer of electric vehicles.

Biden and his allies, meanwhile, have welcomed the CAFE standards and similar initiatives as good for consumers’ wallets and prudent for the future of the auto industry.

“These new standards will not only save Americans money at the pump every time they fill up, but they will also reduce harmful pollution and make America less dependent on foreign oil,” U.S. Transportation Secretary Pete Buttigieg said in June. “These standards will save car owners more than $600 in gas costs over the life of their vehicle.”

More: Biden lowers fuel economy standards amid tough political and business realities

Texas Republican Sen. Ted Cruz is leading a concurrent push in the Senate to repeal the CAFE standards. The bills in both chambers invoke the Congressional Review Act, which allows Congress to overturn regulations shortly after they are finalized.

This effort is unlikely to succeed in the current politically divided Congress.

However, Republicans may be able to revive the effort early next year if they win control of both chambers and the White House in November. That’s because of a so-called lookback provision in the CRA that allows Congress to reconsider late legislation from a previous presidential administration.

The long-awaited start date for the lookback period will only become final once at least one house of Congress concludes its session for the year.

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Any regulations finalized after that date — on average, July 18, according to a report by the Administrative Conference of the United States — would be eligible for challenge again if Republicans win the general election.

This will prevent the June 7 fuel economy standards from being challenged by the CRA at a later date, although some observers believe the window will close earlier this year.

The CAFE rules are one of several actions Biden is taking to reduce the environmental impact of commercial vehicles, which are responsible for about 16% of U.S. greenhouse gas emissions, according to the EPA.

His administration has devoted significant time and resources to the cause, using incentives and punitive measures to encourage the auto industry to electrify.

Other efforts included two other key policies aimed at reducing emissions; a $7,500 tax credit on qualifying purchases of new electric vehicles under the Climate Change Inflation Reduction Act; $7.5 billion to expand the network of electric vehicle chargers under the bipartisan infrastructure law; IRA-funded production subsidies to adapt old industrial centers to electric vehicle needs; and a set of new tariffs aimed at protecting U.S. automakers from competition from China, which has emerged as the world leader in electric vehicles.

More: Voters want Michigan to make electric vehicles, but they don’t want to buy them, poll finds

Republicans strongly opposed these actions.

“The Biden-Harris Administration has declared war on affordable gas-powered cars,” Cruz said in a statement, referring to Vice President Kamala Harris, the presumptive Democratic presidential nominee. “I am leading the effort in the Senate to stop radical environmentalists from abusing the rulemaking process and trying to force electric vehicles on consumers who don’t want them.”

“Unlike the Biden-Harris administration, Republicans continue to fight to ensure that consumers and innovators have the power to shape the future of the auto industry,” Walberg added, “not just unelected bureaucrats issuing radical mandates from Washington.”

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@GrantSchwab