The National Highway Traffic Safety Administration (NHTSA) has proposed a significant increase in Corporate Average Fuel Economy (CAFE) standards, particularly for light and commercial trucks. General Motors (GM) had initially claimed that these stringent fuel economy standards could result in $300 billion in fines for automakers. However, GM appears to be less certain about this now. Let’s delve into the details.

Let’s first take a look at the proposal itself. You can read the entire 696-page proposal here, which was officially released by the NHTSA today. It is important to note that this is just a proposal and is not yet official. Once it is published in the Federal Register, there will be a 60-day open comment period. In a nutshell, the major highlights of the proposal include a 10 percent year-over-year fuel economy improvement for commercial pickup trucks and vans starting in 2030. This requirement applies to vehicles with gross weight ratings over 8,500 pounds but less than 14,001 pounds.