Department of Transportation Proposes Dramatic Rollback of Corporate Average Fuel Economy (CAFE) Standards
On December 3, in connection with a highly publicized announcement in the Oval Office and a statement from the White House, the Department of Transportation proposed a rulemaking that would reset Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks sold in the United States for model years 2022-2031. Along with Congress’s recent elimination of civil penalties for CAFE noncompliance, the proposal would roll back more stringent fuel economy targets set in previous Administrations—including the first Trump Administration. The proposed changes have significant implications for, among other things, the electric vehicle market.
Open for Business: A Look at NHTSA Auto Safety Investigations in the Second Trump Administration
The second Trump administration has seen drastic changes in the enforcement practices of many federal regulatory agencies. One area where investigative activity continues to be robust is auto safety. The National Highway Traffic Safety Administration (NHTSA) has, in, recent months, been opening investigations at a brisk pace. Some of NHTSA’s work, particularly relating to autonomous operations and counterfeit equipment, has attracted substantial public attention. Other investigations have been more business as usual.
The Department of Transportation’s Spring 2025 Regulatory Agenda: Big Announcements on Autonomous Vehicles and Automatic Emergency Braking
On September 4, 2025 the National Highway Traffic Safety Administration (NHTSA) announced several planned rulemakings relating to autonomous driving systems as part of the Trump Administration’s Spring 2025 regulatory agenda. The Secretary of Transportation said: “The rules of the road need to be updated to fit the realities of the 21st century. Our changes will eliminate redundant requirements and bring us closer to a single national standard that spurs innovation and prioritizes safety.” The Department of Transportation’s regulatory agenda also has dozens of other items, including two notable actions on automatic emergency braking.
Congress Eliminates Corporate Average Fuel Economy (CAFE) Penalties for Passenger Cars and Light Trucks
In one of its many changes, the One Big Beautiful Bill Act, enacted on July 4, 2025, eliminated civil penalties for noncompliance with federal fuel economy standards. Specifically, Section 40006 of the Act amends the language of the Corporate Average Fuel Economy (CAFE) statute to reset the maximum civil penalty to $0.00. Although the statute and its implementing regulations otherwise remain in place, this amendment removes any civil penalties for producing passenger cars and light trucks that do not meet fuel economy requirements.
Department of Transportation Announces a Streamlined Regulatory Exemption Process for Autonomous Vehicles
On June 13, the U.S. Department of Transportation (DOT) and the National Highway Traffic Safety Administration (NHTSA) announced changes to the process for exempting autonomous vehicle companies from the Federal Motor Vehicle Safety Standards (FMVSS) under 49 C.F.R. Part 555. Part 555 offers an important route for the sale and deployment of innovative autonomous vehicles. The recent announcement evidences a desire to speed up agency decisions on Part 555 exemptions, though the application process will continue to be a substantial undertaking.
Deregulatory Announcements at the U.S. Department of Transportation: A Sign of Bigger Things to Come?
On May 29, the U.S. Department of Transportation announced more than 50 deregulatory actions at the three operating administrations of the department that focus on road transportation: the Federal Highway Administration (FHWA), Federal Motor Carrier Safety Administration (FMCSA), and National Highway Traffic Safety Administration (NHTSA). The Secretary of Transportation was quoted as saying, “my department is slashing duplicative and outdated regulations that are unnecessarily burdensome, waste taxpayer dollars, and fail to ensure safety.”
NHTSA Announces New Policies to Promote Autonomous Vehicles
On April 24, 2025, the Department of Transportation announced the new Automated Vehicle (AV) Framework from the National Highway Traffic Safety Administration (NHTSA). The announcement, which was accompanied by a video from the Secretary of Transportation, included two new policy developments. First, NHTSA released a Third Amended version of its Standing General Order on Automated Driving Systems (ADS) and Advanced Driver Assistance Systems (ADAS). Second, NHTSA announced that it would expand its exemption program for autonomous vehicles that do not fully comply with NHTSA’s Federal Motor Vehicle Safety Standards. This update discusses both developments and their broader implications.
U.S. Nuclear Regulatory Commission Proposes New Licensing Framework for Advanced Reactors
Since the U.S. adoption of commercial nuclear power, large-scale commercial reactors — typically boiling or pressurized water designs — have been licensed under the provisions of 10 C.F.R. Part 50 (Part 50) and later 10 C.F.R. Part 52 (Part 52). Under these licensing approaches, license applicants submit construction and operating license permits in a multiyear process largely tailored to address the risks and controls necessary to operate bespoke, large-scale nuclear power plants at a specific site.
U.S. Federal Courts Vacate Federal Highway Administration Greenhouse Gas Rule
On Tuesday, April 2, 2024, in Commonwealth of Kentucky v. Federal Highway Administration¸ No. 23-162 (W.D. Ky.), the U.S. District Court for the Western District of Kentucky vacated the Federal Highway Administration December 2023 Greenhouse Gas Rule (see our prior blog post here for a more detailed summary of the Rule). That rule, proposed in July 2022 and modeled off of a rule proposed by the Obama administration in 2017 but repealed by the Trump administration before it could take effect, sought to require each state to set declining targets for tailpipe carbon dioxide emissions from vehicles on the National Highway System. Tuesday’s ruling follows a similar one from the U.S. District Court for the Northern District of Texas on March 28, 2024, in State of Texas v. U.S. Dep’t of Trans. No. 23-304 (N.D. Tex.) that purported to vacate the rule nationwide.
