Overview
- The Department of Energy removed the long-used “fuel content factor,” which had allowed electric vehicles to count at artificially high mpg-equivalent values in fleet averages.
- Under the rescinded provision, an EV with roughly 30 mpg energy-equivalent could be tallied at about 200 mpg, easing compliance for automakers.
- The decision departs from a March 2024 Biden-era plan to phase out the factor by 2030, with the DOE now eliminating it immediately and signaling further revisions.
- Recent rollbacks also include NHTSA excluding EVs from CAFE compliance and proposing a 34.5 mpg target for 2031, congressional removal of CAFE civil penalties, loss of federal EV purchase tax credits, a move to revoke California’s waiver, and an EPA proposal to repeal the 2009 GHG endangerment finding.
- Industry voices highlight potential market effects, with Ford’s CEO warning U.S. EV share could slip to about 5%, while analysts caution the pullback may benefit China’s fast-growing EV sector.