The mission of the DOT challenge is a key part of former U.S. President Joe Biden’s plan to address climate change.

The U.S. Department of Transportation (DOT) announced that former President Joe Biden's administration assumes that electric vehicles are absorbing more than their power when calculating fuel economy rules.

With the announcement Friday, the point paved the way for loose fuel standards and issued the “Reset Company Average Fuel Economy Plan” (CAFE) rules. Future executive rules with President Donald Trump will modify fuel economy requirements.

“We are making vehicles more affordable and easier to manufacture in the United States,” Transportation Secretary Sean Duffy said in a statement.

The department’s National Highway Traffic Safety Administration (NHTSA) stipulated in writing under Biden last year that “will continue to produce large quantities of electric vehicles regardless of the standards set by the agency, thereby increasing the level of standards that can be considered the most viable.”

Stay away from Biden's policy changes

In January, Duffy signed an order directing the NHTSA to cancel the fuel economy standard issued by Biden under the 2022-2031 model year, which aims to significantly reduce fuel use in cars and trucks.

In last year’s launch, the point was led by Pete Buttigieg, and cars built between 2027 and 2031 increased the fuel economy needed to increase by 2%.

At the time, DOT said that this would help save consumers more than $600 a year. This is also part of the Biden administration's plan to address climate change.

“These new fuel economy standards will save our country billions, help reduce our dependence on fossil fuels and provide air cleanliness for everyone.

NHTSA said in June 2024 that it would raise the requirements for cafes to about 50.4 miles per gallon (4.67 liters per 100 kilometers) in 2031, upgrading from the current 39.1mpg to a light vehicle.

The agency said last year that passenger cars and truck rules would reduce gasoline consumption by 64 billion gallons and reduce emissions by 659 million tons, reducing fuel costs, while net profit was estimated at $35.2 billion.

Later Thursday, Senate Republicans proposed to remove fines in part of a wide range of tax bills to comply with cafe rules, the latest move aimed at making it easier for automakers to build gasoline-powered vehicles.

Last year, Chrysler-parent Stellantis paid a civil fine of $190.7 million for failing to meet the 2019 fuel economy requirement, after paying nearly $400 million from 2016 to 2019.

Strandis said it supports the Senate Republican proposal “providing relief when DOT develops its recommendation to reset cafe standards…these standards are out of sync with current market reality, and immediate relief is necessary to maintain affordability and freedom of choice.”

General Motors declined to comment.