Senate Republicans are proposing to terminate penalties for automakers whose fleets are not efficient enough to meet national standards.
Automakers’ car fleets are required to meet fuel mileage standards set by the Department of Transportation.
Text for the GOP’s “big, beautiful bill” put forward Thursday by the Senate Science, Commerce and Transportation Committee Republicans brings the penalty for not complying with these rules down to zero.
How stringent the standards for car fleets should be is a question that has ping-ponged in recent years between Democratic and Republican administrations. However, the bill text goes a step further, effectively wiping out the standards entirely by charging companies zero dollars if they don’t meet them.
In recent years, some automakers have had to pay hundreds of millions of dollars in penalties related to the vehicle efficiency rules.
In a written statement on the legislation, Science, Commerce and Transportation Chair Ted Cruz (R-Texas) said the bill would help to “unleash America’s full economic potential.”
Automakers could still be governed by tailpipe emissions rules put forward by the Environmental Protection Agency (EPA). Text from the Environment and Public Works Committee, which has jurisdiction over that separate standard, seeks to wipe out the Biden-era requirements but does not go as far as getting rid of the entire regulatory program.