Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Cars

White House Releases Fuel Efficiency Rules — Will the Loophole Make it in?

Transportation Secretary Ray LaHood and Environmental Protection Agency chief Lisa Jackson will head to the White House briefing room this afternoon to release the final version of fuel-economy rules that will bring the nation's auto fleet to an average of 35.5. miles per gallon by 2016.

610x.jpgTransportation Secretary Ray LaHood (Photo: AP)

Both officials are expected to emphasize the environmental benefits of the new efficiency rules, which were the product of behind-the-scenes negotiations between the Obama administration, the auto industry, and pollution regulators in California -- which got the ball rolling with its battle to impose stronger emissions standards.

LaHood described the new fuel rules as "bring[ing] our nation a step closer to a future where the vehicles we drive would actually help us to solve our energy and environmental challenges, rather than contribute to them."

But as Streetsblog Capitol Hill noted earlier this month, a loophole that exempts many foreign luxury cars could make it into the new efficiency standard.

The provision would relax the fuel rules for companies that sell fewer than 400,000 vehicles in the U.S., a list that is likely to include BMW, Volkswagen, Mitsubishi, Subaru, and other well-known automakers.

Indeed, the popular conception of a gas-guzzler is often a hulking SUV, but smaller luxury cars can be just as fuel-inefficient. The Mercedes-Benz gets an average of less than 20 mpg, a fuel efficiency comparable to the Ford Ranger compact pickup truck, while BMW's M Series of sportscars get an average of less than 15 mpg.

Will the exemption -- which auto lobbyists call the "German provision," according to the Wall Street Journal -- show up in the final efficiency rules? If it does, domestic automakers and environmental groups could make their discontent known during the 60-day window for public commentary on the new standard, leaving the door open for a rollback.

Once the rules are added to the federal government's regulations.gov website, anyone -- from Streetsblog readers to industry representatives -- is free to weigh in. Stay tuned...

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Survey: Most Americans Are Open To Ditching Their Cars

Automakers have spent a century and countless trillions of dollars making car-dependent living the American norm. But U.S. resident still aren't sold, a new survey suggests.

January 21, 2026

You Can’t Afford Wednesday’s Headlines

Americans want to live in walkable areas near transit, but not enough housing is being built there, driving prices out of reach for many and forcing them into a car-dependent lifestyle.

January 21, 2026

NYC Warns Delivery Apps to Follow New Worker Protection Laws

The Mamdani Administration sent letters to over 60 delivery app companies, warning they must comply with new regulations.

January 20, 2026

What the ‘Abundance’ Agenda Could Mean For Equitable Transportation

Could Ezra Klein and Derek Thompson's buzzword usher in an era of bountiful transportation options, or just more highways?

January 20, 2026

Tuesday’s Headlines Weigh Perception and Reality

It may be driven largely by the media — car crashes are too common to make the news — but a feeling that transit isn't safe is hurting ridership.

January 20, 2026

Monday’s Headlines Wonder About E-Bikes’ Future

E-bike sales surged in 2020 and 2021 but have been flat ever since.

January 19, 2026
See all posts