WASHINGTON, D.C. – A move by the Trump administration to reverse what it calls an “illegal attack” on gas-powered cars could complicate New Jersey’s strategy to phase them out under policies first advanced by Gov. Phil Murphy and supported by Rep. Mikie Sherrill.
The administration’s newly proposed Corporate Average Fuel Economy (CAFE) standards for model years 2027 through 2031 would eliminate provisions that encouraged rapid electric vehicle adoption, restoring a focus on improving efficiency among gasoline-powered vehicles instead.
Industry groups say the rule returns the federal fuel program to its legal foundation.
Industry backs rollback of Biden-era rules
American Fuel & Petrochemical Manufacturers President Chet Thompson said the revised standards “get CAFE back on a solid legal footing” by staying within limits set by Congress in the Energy Policy and Conservation Act. He argued that the Biden administration “unlawfully” used CAFE rules to drive an accelerated shift toward electric vehicles, placing unrealistic burdens on automakers and consumers.
“We’re optimistic this proposal aligns with EPCA’s directive for standards to be ambitious yet feasible for internal combustion engine vehicles,” Thompson said, adding that the revision will “protect consumers’ access to the types of cars and trucks they want and can afford.”
Potential impact on state-level gas car bans
The proposal could pose challenges for states like New Jersey, which adopted California’s Advanced Clean Cars II rule earlier this year to ban the sale of new gasoline-powered cars by 2035. Federal CAFE standards serve as the national benchmark for vehicle efficiency, and a shift in their legal interpretation could undercut the regulatory foundation for state policies targeting internal combustion engines.
Rep. Mikie Sherrill and Gov. Murphy have both supported the state’s clean energy transition, citing environmental and economic benefits. But if federal regulators limit how fuel economy rules account for electric vehicles, New Jersey may face additional legal and logistical hurdles in enforcing its ban.
Legal disputes likely ahead
Environmental groups are expected to challenge the administration’s interpretation, while industry advocates prepare to file comments in support of the rule. The proposal will undergo a public comment period before being finalized by the National Highway Traffic Safety Administration.