'SAFE' Rule III Dials Back Car Fuel Mandates for Families
Published Date: 9/30/2026
Rule
Summary
The SAFE Vehicles Rule III updates fuel economy standards for cars and light trucks from 2022 to 2031, making sure manufacturers build vehicles that better match what American families want and need. This rule changes how fuel efficiency is measured and sets new deadlines starting November 30, 2026. It aims to save money at the pump and help the environment by encouraging smarter, more affordable vehicle designs.
Analyzed Economic Effects
6 provisions identified: 3 benefits, 2 costs, 1 mixed.
New annual fuel-economy targets set
NHTSA finalizes new fuel-economy growth rates for model years (MY) 2022–2031: passenger cars increase 0.90% per year through MY2029 then 1.0% per year through MY2031; non-passenger (light truck) standards increase 0.51% per year through MY2029 then 1.0% per year through MY2031. These percent-per-year changes define how strict manufacturers' fuel-economy targets become across the covered model years.
Lower up-front vehicle cost estimate
NHTSA estimates the final rule will reduce the average up-front vehicle cost due to CAFE standards by approximately $1,290 compared with the No-Action Alternative. The agency presents this $1,290 figure as an average reduction in up-front costs attributed to the standards in this final rule.
EVs and PHEV electric operation excluded
For setting the CAFE standards in this rule, NHTSA based standards solely on gasoline- and diesel-powered light-duty vehicles and did not consider the imputed fuel-economy performance of electric vehicles (EVs) or the electric operation of plug-in hybrid electric vehicles (PHEVs). NHTSA states it did not include EVs in the base fleet for analysis or as compliance strategies.
Inter-manufacturer credit trading ended for new credits
NHTSA eliminates inter-manufacturer CAFE credit trading beginning with credits earned in model year (MY) 2028. Manufacturers may still purchase and use credits earned through MY2027 for up to five model years after they were earned (for example, credits earned in MY2026 may be used through MY2031; credits earned in MY2027 may be used through MY2032). NHTSA retains a manufacturer's ability to transfer credits within its own fleets and carry credits forward or backward across its model years as allowed by statute.
AC and off-cycle adjustments removed starting MY2028
NHTSA removes consideration of air-conditioning (AC) efficiency and off-cycle fuel consumption improvement values (FCIVs) from its standard-setting analysis beginning in model year 2028. The agency says this change ensures CAFE standards are set without relying on those adjustments.
Major vehicle reclassification changes
NHTSA finalizes a substantial reclassification of the light-duty fleet: passenger cars will be vehicles primarily designed to move people, while light trucks will be vehicles primarily designed to operate off highway or move cargo. NHTSA states moving many vehicles previously classified as light trucks into the passenger fleet will lower measured fuel economy for both passenger-car and light-truck fleets and will affect vehicle design considerations.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-11072, Federal Motor Vehicle Safety Standard No. 214; Side Impact Protection; Federal Motor Vehicle Safety Standard No. 305a; Electric-Powered Vehicles: Electric Powertrain Integrity; Federal Motor Vehicle Safety Standard No. 307; Fuel System Integrity of Hydrogen Vehicles
Starting July 6, 2026, car makers must follow updated safety rules that clean up old, outdated side-impact protection standards and fix related rules for electric and hydrogen vehicles. These changes make the rules clearer without adding new costs or big changes for manufacturers. If anyone wants to challenge the updates, they have until July 20, 2026, to speak up.
2026-08144, Administrative Rulemaking, Guidance, and Enforcement Procedures
The Department of Transportation is bringing back and improving its rules for making new policies, giving guidance, and enforcing laws. This affects anyone involved in transportation regulations, making the process clearer and more consistent. These changes kick in on May 27, 2026, aiming to save time and avoid confusion without adding extra costs.
2026-05023, Federal Motor Vehicle Safety Standards; Modernization of FMVSS No. 103 and FMVSS No. 104 To Accommodate ADS-Equipped Vehicles; Incorporation by Reference
NHTSA is updating rules for windshield defrosting, defogging, wiping, and washing to better fit self-driving cars that don’t have steering wheels or pedals. These cars won’t have to follow old rules meant for human drivers, cutting costs and unnecessary requirements without hurting safety. The changes kick in about six months after the final rule, and manufacturers can still add these features if they want.
2026-05024, Federal Motor Vehicle Safety Standards; Modernization of FMVSS No. 102 To Accommodate ADS-Equipped Vehicles
NHTSA wants to update a safety rule to help self-driving cars that don’t have steering wheels or gear shifts. They’re proposing to remove the need for a gear position display in these automated vehicles, cutting costs without hurting safety. If you have thoughts, speak up by April 15, 2026!
2025-22674, Public Hearing for Corporate Average Fuel Economy Standards: The Safer Affordable Fuel-Efficient (SAFE) Vehicle Rule III for Model Years 2022 to 2031 Passenger Cars and Light Trucks
The government is holding a virtual public hearing on January 7, 2026, about new fuel economy rules for cars and light trucks from 2022 to 2031. These rules aim to keep vehicles safer and more affordable while improving fuel efficiency. If you care about how much gas your car uses or how much you pay at the pump, this is your chance to speak up before the rules are finalized.
2025-03348, Federal Motor Vehicle Safety Standards; Child Restraint Systems, Child Restraint Anchorage Systems, Incorporation by Reference; Correction
This correction fixes a small but important mistake in a January 2025 rule that makes child car seats and their anchor points easier and safer to use. It affects car makers and child safety seat manufacturers by clarifying when they must follow the new rules—starting three years after the original rule was published. The changes help keep kids safer in cars without adding extra costs or delays.
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