U.S.: government issues rule to exclude EVs from fuel economy calculations

On June 6, 2025, the U.S. Department of Transportation (USDOT) issued a final rule titled Resetting the Corporate Average Fuel Economy (CAFE) Program, stating that fuel economy standards introduced under the previous administration had exceeded legal authority by incorporating electric vehicles (EVs) into compliance calculations.

The decision marks a shift in policy direction, aiming to exclude EVs from CAFE compliance metrics and to realign the program with its original legislative intent. Created under the Energy Policy and Conservation Act of 1975 in response to the oil crisis, the CAFE program was intended to improve the average fuel efficiency of vehicles powered by gasoline and diesel. At the time, it did not