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Freeze on Fuel Economy Standards Likely

The Trump administration is likely to propose freezing fuel economy standards from 2020 through 2026, according to three people briefed on the matter, a move likely to spark a fight with California and other states backing tougher vehicle emissions rules.

This story by David Shepardson appeared in Automotive News.

The administration is circulating a draft proposal that would include freezing requirements after 2020 as the preferred alternative, but will include a series of other alternatives, the sources said. The formal proposal is expected to be unveiled in the coming weeks and has not been finalized.

The lengthy draft proposal, led by the National Highway Traffic Safety Administration (NHTSA), is also expected to assert that a 1975 federal law preempts states from imposing emissions rules, but the administration is not expected to immediately propose revoking California’s waiver under the Clean Air Act to set its own rules.

Automakers want changes to address lower gasoline prices and a shift in U.S. consumer preferences to larger, less fuel-efficient vehicles. They want revisions to the Obama standards to make it easier and less costly to meet targets, which vary depending on the size of vehicles and whether they are classified as cars or trucks.

The Obama administration’s rules, negotiated with automakers in 2011, were aimed at doubling average fleet-wide fuel efficiency to about 50 mpg by 2025.

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