Lower Federal CAFE Standards Proposed

The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) has released a federal proposal to revise corporate average fuel economy standards (CAFE) for passenger cars and light-duty trucks for model years 2022–2031. This shift represents a significant rollback from policies finalized under the Biden administration.

Key elements of the proposal include:

• Resetting baseline standards: The rule would establish lower fuel economy targets, aiming for a fleetwide average of ~34.5 miles per gallon (mpg) by model year 2031 (below the ~50 mpg level under the earlier standard). The CAFE standards apply only to passenger cars and light trucks under 8,500 lbs. Gross Vehicle Weight Rating (GVWR).
• Lower annual increases: Instead of steep year-over-year efficiency gains, the plan would slow required improvements to modest annual increments (e.g., ~0.5 % per year early on, then ~0.25 %).
• No EV-centric credits in calculations: The proposed rule would not count electric vehicles (EVs) or broad credit trading between automakers toward compliance in the same way as before — a significant departure from the Biden administration.
• Elimination of credit trading: Starting in model year 2028, manufacturers would no longer be able to sell or trade CAFE compliance credits to each other.

What Does this Mean for the RV Industry?

Objectives of the proposal are to improve affordability and consumer choice, particularly for those who prefer gasoline-powered vehicles.

• On the cost issue, the lower mileage mandates reduce the need for costly advanced fuel-saving technologies in tow vehicles, potentially stabilizing or lowering their purchase price. This improves affordability for RV buyers and may help offset lost gas savings that would have otherwise been realized.
• The higher mileage requirements may also impact the auto manufacturer’s vehicle mix. Auto manufacturers can offer higher-capacity pickups and SUVs with adequate towing capabilities, ensuring that RV buyers can access vehicles capable of safely towing larger RVs.

While motorhomes are not directly regulated under CAFE, less stringent standards will affect the RV market indirectly. Key implications:

• Gasoline engines commonly used in RVs are more likely to remain available under the relaxed targets.
• Fuel-saving technologies—such as hybridized or higher-efficiency truck platforms—may take longer to develop or reach the RV market.

What’s Next?

• The proposal is now in a public comment period. Comments are requested on or before January 20, 2026. NHTSA will hold a virtual public hearing on January 7, 2026. An additional session will be held on January 8, 2026, if necessary. 

We will keep RV Industry Association members updated on any future developments.  

For further information, please contact Bill Erny, Senior Manager of Regulatory Affairs at berny@rvia.org.