US regulators have waived fines for automakers failing to meet fuel efficiency standards since 2022, following a new law signed by President Trump. This move eliminates penalties under Corporate Average Fuel Economy rules dating back to 1975. Automakers will benefit, while environmental groups express disapproval.

In a letter obtained by Reuters, the National Highway Traffic Safety Administration (NHTSA) informed automakers of a re-evaluation of fuel economy regulations. This aligns with Washington’s measures to ease gasoline vehicle production and increase electric vehicle costs. Past non-compliance has led to significant penalties for automakers like Stellantis and General Motors.

President Trump’s actions also nullify California’s goal to phase out gasoline-only vehicle sales by 2035. Tesla, on the other hand, has profited from regulatory credits through the sale of zero-emission EVs. The recent legislation signed by Trump eliminates vehicle fines for years where NHTSA has not completed its rulemaking process.

Center for Biological Diversity’s Dan Becker disapproves of the decision, calling it an “obscene gift” to pollution law violators GM and Stellantis. Automakers may save around $200m, according to Senate Republicans. The NHTSA under President Biden proposed to increase fuel economy standards through 2032, but the final rule reduced potential industry fines significantly.

US automakers are now exempted from fines for fuel efficiency non-compliance due to a recent law signed by President Trump. This decision has sparked controversy, with environmental groups criticizing the move as a gift to polluters. Automakers stand to benefit financially from the waiver of fines.

Read more at Yahoo Finance: US automakers exempted from fines for fuel efficiency non-compliance