Overview
- The Department of Energy on Feb. 18 eliminated the long‑standing fuel content factor that had allowed electric vehicles to be credited with artificially high fuel‑economy values under CAFE calculations.
- DOE’s action follows a September 2025 Eighth Circuit ruling that found the multiplier lacked statutory authority, invalidating the prior plan to phase it out gradually.
- NHTSA last year moved to exclude EVs from CAFE compliance calculations and proposed weaker fleet targets of about 34.5 mpg by model year 2031, after Congress in July 2025 removed civil penalties for noncompliance.
- Separately, the EPA finalized a rule rescinding its 2009 endangerment finding, and the NRDC, Sierra Club and others filed suit on Feb. 18 in the D.C. Circuit to challenge that decision.
- The White House says the rollbacks will cut $1.3 trillion in regulatory costs and lower sticker prices, while environmental groups counter that drivers will pay roughly $6,000 more for fuel and warn the U.S. could lose EV ground to China.