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ZETA Statement on NHTSA Interpretation of the CAFE Program and the Senate's Removal of Enforcement

June 7, 2025

WASHINGTON, D.C.—The Zero Emission Transportation Association’s Executive Director, Albert Gore, issued the following statement in response to yesterday’s interpretative rule regarding the Corporate Average Fuel Economy (CAFE) Program by the U.S. Department of Transportation’s (DOT) National Highway Traffic Safety Administration (NHTSA), and the release of the Senate’s reconciliation bill text that abolishes fines for noncompliance:

“The Corporate Average Fuel Economy Program was developed after the 1974 oil embargo as a national effort to make the country less vulnerable to price shocks and OPEC. It also saves everyday Americans a ton of gas money. Average fuel economy has doubled over the last 50 years, meaning drivers save thousands in gas money every year thanks to this program. Weakening this program, either by changing the rules or repealing it outright, means everyday Americans will have to buy more gas, and more demand for gas means higher gas prices. That’s not what we need right now.

“The interpretative rule by DOT regarding the CAFE Program and the proposal to remove fees for noncompliance in the Senate’s reconciliation bill raise significant challenges for the U.S. auto industry. DOT’s interpretation attempts to retroactively alter existing regulations, creating uncertainty for manufacturers that have strived to comply with these achievable standards. It also fails to acknowledge the transformation in the American auto market, as more than 19% of current new vehicle sales have alternative drivetrains—including hybrids, plug-in hybrids, and fully electric vehicles. Meanwhile, the Senate’s proposal to not enforce federal regulations harms manufacturers that have made investments to comply with the current rule.

“These proposals do a disservice to American consumers and create costly regulatory uncertainty for American manufacturers.”

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About ZETA

National policies to support the electric vehicle supply chain.

The Zero Emission Transportation Association (ZETA) is a federal coalition focused on advocating for the advancement of the electric vehicle supply chain. ZETA is committed to enacting policies that drive EV adoption, create hundreds of thousands of jobs, and maintain American EV manufacturing dominance in global markets.