Sponsors (6)
The bill simplifies and lowers federal fuel‑economy obligations and preempts state rules to reduce regulatory costs and ease interstate vehicle commerce, but in return it likely increases fuel use and emissions, weakens state-level climate and air‑quality tools, and may raise long‑term fuel costs for drivers.
National vehicle manufacturers and interstate sellers face fewer conflicting state fuel‑economy rules, reducing legal and regulatory compliance costs and simplifying nationwide sales and distribution.
Vehicle purchasers and fleet operators face reduced federal CAFE requirements beginning with model year 2029, which may lower manufacturer compliance costs and translate into lower vehicle prices or reduced upfront costs for buyers.
Consumers buying vehicles across state lines get uniform federal standards rather than a patchwork of differing state rules, simplifying purchase decisions for buyers who cross state borders.
Communities nationwide (urban and rural) are likely to experience higher gasoline consumption and increased greenhouse gas emissions because federal rollback of CAFE standards plus preemption of stricter state rules reduces overall incentives and requirements to improve fuel economy.
Drivers and households (especially middle‑class families) may face higher long‑term fuel costs if manufacturers slow or pause fuel‑efficiency improvements after CAFE requirements are removed.
Consumers may see fewer state‑driven incentives, standards, or programs that encourage adoption of more fuel‑efficient or zero‑emission vehicles, slowing uptake of cleaner vehicles and slowing associated public‑health benefits.
Based on analysis of 3 sections of legislative text.
Repeals the federal CAFE chapter effective model year 2029, revises automobile definitions, and bars States from adopting or enforcing fuel-economy standards for automobiles.
Official title: Amend title 49, United States Code, to eliminate corporate average fuel economy standards, and for other purposes.
Introduced July 22, 2026 by Michael Dean Crapo · Last progress July 22, 2026
Repeals the federal Corporate Average Fuel Economy (CAFE) chapter for model year 2029 and later, changes multiple federal definitions for types of automobiles and fuel status, and bars States and local governments from adopting or enforcing fuel economy or average fuel economy standards for automobiles. The bill also creates new statutory definitions (for example, "dual fueled" and "dedicated" automobiles) and adjusts cross-references in several energy statutes to reflect the repeal and new local definitions.