NATSO Supports Exclusion of EVs from CAFE Standards
NATSO supported the exclusion of battery electric vehicles and plug-in hybrid electric vehicles from Corporate Average Fuel Economy (CAFE) standards in comments filed February 4 with the National Highway Traffic Safety Administration (NHTSA).
NHTSA on December 5, 2025, proposed new CAFE standards for Model Years 2022-2031 for passenger cars and light trucks that would recalibrate the program and more closely align with Congressional intent.
The Energy Policy and Conservation Act (EPCA) prohibits NHTSA from considering EVs when setting fuel economy standards. Vehicles that do not consume gasoline or diesel fuel are outside the scope of the fuel economy calculus altogether under the framework established by Congress. EPCA also explicitly provides that plug-in hybrid vehicles must be treated as operating only on gasoline or diesel fuel. NHTSA in 2024 finalized new CAFE standards that used a mix of fuels and technologies to achieve its average emission targets.
In its comments, NATSO underscored that the question over whether to mandate a shift to EVs is a “major policy question” and outside the scope of NHTSA’s authority to answer. The major questions doctrine requires that an agency point to ‘clear congressional authorization’ to regulate in economically and politically significant matters to ensure that policy regulations are in line with Congressional intent.
The proposal to exclude EVs from the CAFE standards will advance important market outcomes including: spurring innovation in ICE technologies and compatible fuels; improving resilience in cold and rural operating environments; and moderating inflationary pressures by lowering costs and preserving choice.
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