National Review Online
Thursday, December 04, 2025
Gas-powered cars are okay again.
On Wednesday, President Trump announced that his administration is ditching
fuel-efficiency rules on new automobiles imposed by Joe Biden that sought to
drive gas-powered cars off the road over the next several years. Carmakers will
now be free to make the vehicles that consumers wish to purchase, not merely
the electric ones the previous administration tried to foist upon them.
As a famous admirer of institutions, Biden elected not to
go to Congress to put his electric-vehicle mandate into law, knowing it could
never pass the representative branch of government because phasing out
gas-powered cars by force was never a winning proposition among the U.S. electorate.
Instead, Biden exploited a little-known regulatory power enacted a full two
decades before the first commercial EV was released.
The tool Biden landed on was the Corporate Average Fuel
Economy standards, commonly referred to as CAFE standards, which establish
minimum fuel-efficiency thresholds for new automobiles. Created by Congress
during the energy crisis of the 1970s, CAFE standards were designed to decrease
gasoline usage over time. Unfortunately, the statute delegated the power to set
the specific mileage standards to the Transportation Department for future
presidents to abuse.
The standards for vehicles remained flat for decades at 27.5
miles per gallon for passenger cars and just over 20 MPG for light trucks,
which include extremely popular car models such as pickups and SUVs. The Obama
administration began upping the standards in the early 2010s, truncating
consumer choice but keeping requirements reasonable enough for most
automakers to comply.
In 2024, however, the Biden administration issued a rule
to radically increase CAFE standards so that, by 2031, the government would
mandate a fuel economy of 65.1 MPG for passenger cars and 45.2 for light
trucks. As the administration fully recognized, there was no feasible way for
any gas-powered cars to comply with these dictates.
CAFE standards apply fleetwide, however, so automakers
needed only to meet the fuel economy standards on average across all
their new vehicle sales. They could continue to produce gas-powered cars so
long as they also produced enough EVs with near-infinite
fuel economy to balance them out.
In practice, this meant that carmakers would be compelled
to sell a certain (very high) number of EVs as a percentage of their total
sales. By the same token, only a much lower percentage of their sales could be
of gas-powered cars.
This regulatory sleight of hand gave both the Biden
administration and the media leeway to pretend the tightened CAFE standards
weren’t an EV mandate in disguise. Americans would be free to purchase any car
they pleased — but only if most of them chose to buy electric ones. Otherwise,
the gas-powered vehicles they sought could never be manufactured. As Henry Ford
once said of the Model T, “The customer can have any color
he wants, as long as it’s black.”
Biden paired his preposterous fuel economy rules with an
even more draconian requirement, directing the EPA to force
two-thirds of cars to have zero tailpipe emissions by 2032. The only way for
that to happen was for two-thirds of cars to be EVs. Thankfully, Trump
announced on Wednesday that he plans to cancel this rule as well.
As for the CAFE standards, the reversal of Biden-era
rules should be considered a step toward total abolition. The rationale for
their creation — a worldwide energy shortage — no longer exists. Defenders
point to continued consumer savings from higher fuel economies, allowing
drivers to purchase less gasoline. But Americans are more than capable of
assessing the mileage of new cars when they buy them, while weighing it against
other factors such as vehicle size and price. Car buyers need not be protected
from their own decisions by a government that thinks it knows what’s better for
them.
One of the best under-covered provisions of this year’s
One Big Beautiful Bill Act was the elimination of financial penalties for
automakers that fail to meet CAFE standards. Congress should finish the job by
repealing the standards entirely, granting them the same fate as the ill-conceived $7,500 EV subsidy. If not,
Trump might get just as creative as Biden was by setting the standards at zero.
Get whatever car you want, whether it be gas-powered or
electric. At long last, the federal government doesn’t care.
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