Attorney General Bonta Opposes Trump Administration Rollback of Fuel Economy Standards

OAKLAND - California Attorney General Rob Bonta today joined a coalition of 21 attorneys general, four cities, and one county, in submitting a comment letter to the National Highway Traffic Safety Administration (NHTSA) opposing its proposal to weaken corporate average fuel economy (CAFE) standards for passenger cars and light trucks. Historically, NHTSA's standards have reduced consumer costs by improving fuel efficiency for vehicles and decreasing gasoline demand. However, the new proposed rule would significantly weaken fuel economy standards. In today's comment letter, the coalition asserts that the proposed rule is unlawful and would hurt consumers and the planet.

"Robust fuel economy standards are necessary to save drivers money and protect the environment, but NHTSA would rather weaken fuel economy standards," said Attorney General Bonta. "We are at a critical juncture in protecting our people and the environment, and that's why I urge this Administration to course-correct and maintain the strong standards NHTSA previously put in place."

In 1975, Congress enacted the Energy Policy and Conservation Act which required NHTSA to establish "maximum feasible" fuel economy standards and to consider technological feasibility, economic practicability, the effect of other motor vehicle standards of the government, and the need to conserve energy. To set fuel economy standards, NHTSA first models a baseline fleet and then considers what, if any, additional actions manufacturers could take to improve their fuel economy for the future model years in question. In past rulemakings, including during the first Trump Administration, NHTSA started from a realistic baseline fleet that included the millions of electric vehicles that already existed on our nation's highways and roads.

The current proposed rule misinterprets NHTSA's statutory authority and forces the agency to ignore electric vehicles in the baseline fleet and throughout the rulemaking, leading to a dramatically distorted analysis of the "maximum feasible" fuel economy level that the auto industry can achieve. NHTSA has also utilized defective analyses of vehicle affordability and sales, fleet turnover, fuel savings, and vehicle safety to make a profoundly harmful and destructive rule look net-beneficial to society. For example, NHTSA covers up billions of dollars in lost fuel benefits - money that drivers would save at the pump under its previous fuel economy standards - that its proposed rule would take from consumers and transfer back to oil companies. It also treats hundreds of billions of dollars in future damages from climate change-driven disasters as zero dollars, flouting the best science and research. It also proposes that the United States does not really need to conserve energy, after all - treating the high gasoline prices drivers pay and the instability of global oil markets as an even trade for fossil fuel companies' profits. Finally, NHTSA proposes to end the CAFE credit trading program between auto manufacturers in 2028, which will significantly harm EV industries that employ Californians and support our economy.

In the comment letter, Attorney General Bonta and the coalition argue that:

• NHTSA's decision to pretend EVs and EV sales do not exist is bad law and bad agency decision-making.
• NHTSA's proposal contravenes its mandate from Congress to conserve energy.
• NHTSA's termination of credit trading between auto manufacturers is arbitrary and capricious and harms affordability.
• NHTSA's proposal is based on its defective analyses of vehicle affordability and sales, fleet turnover, fuel savings benefits, and vehicle safety.

Attorney General Bonta is committed to advocating for and defending drivers, consumers, and the environment. Just recently, he celebrated a key victory after the Trump Administration conceded its attempt to unlawfully impose conditions on Department of Transportation grant funding for California's vital travel infrastructure. He also co-led a coalition in filing a lawsuit against the Trump Administration for unlawfully suspending two bipartisan grant programs for electric vehicle charging infrastructure. Previously, he filed an amicus brief calling for NHTSA to defend stringent fuel economy standards.

In sending this letter, Attorney General Bonta is joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawai'i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, and Wisconsin, as well as the Cities of Chicago, Denver, New York, and San Francisco, both city and county.