Driving the news: President Trump has signed legislation eliminating fuel economy penalties for automakers going back three years, wiping out hundreds of millions in potential fines under Corporate Average Fuel Economy rules, reports the Detroit News.
For context: The move eliminates penalties that have been in place since 1975, with the National Highway Traffic Safety Administration (NHTSA) telling automakers it's reconsidering the entire fuel economy framework.
Senate Republicans estimate the law will save automakers around $200 million in total penalties.
Why it matters: Fuel economy rules have been a major factor pushing automakers toward electric vehicles and smaller, more efficient cars. And removing these penalties could reduce pressure to invest in EV technology and allow companies to focus more on profitable gas-powered trucks and SUVs that many consumers still want to buy. However, critics argue that it rewards pollution law violators at the taxpayer’s expense.
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