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

Friday’s Headlines Wrote Themselves

Blame it on AI. That will fix everything.

March 6, 2026

Friday Video: How Boomers Broke the Auto Market

Take a deep dive into America's SUV apocalypse — and learn how the next generation can undo the damage.

March 6, 2026

Talking Headways Podcast: The Annual Prediction Show with Yonah Freemark

Yonah Freemark joins Talking Headways for their annual discussion of future of transit in the United States (and Mexico).

March 5, 2026

‘Stupendous Potential’: Pay-Per-Mile Auto Insurance Would Cut Costs And Traffic Violence

Lowering car insurance costs doesn't have to eviscerate crash victims's rights.

March 5, 2026

Urban Truth Collective: Straight Talk About The Joy Of Cities In An Age Of Disinformation

The Three Tenors of Urbanism explain their latest effort: The Urban Truth Collective.

Study: AVs Will Super-Charge VMT

Yes, robocars address many of our traffic violence troubles, but they may fail to uproot the deeper rot of car dependency that has hollowed out our society

March 5, 2026
See all posts