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119-s-1841119th CongressWALLET

Fuel Choice and Deregulation Act of 2025

Sponsored By: Senator Paul, Rand [R-KY]

Introduced

Summary

Expanded fuel choice and deregulation. This bill would favor alternative fuels and flexible-fuel technology by loosening rules on aftermarket conversions, protecting biomass fuels, and changing fuel-economy definitions and credits.

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  • Families and drivers: Aftermarket conversions that are matched to the vehicle and designed to avoid emissions degradation would not be treated as tampering. Converters must affix a post-sale label and the EPA Administrator can still prohibit installations that worsen emissions.
  • Vehicle manufacturers: A "fuel choice enabling manufacturer" would be one whose most recent model-year fleet is at least 50% fuel-choice enabling vehicles. Such manufacturers get an 8 miles-per-gallon bonus to their annual average, can carry earned credits forward up to 5 model years, and may be deemed compliant with EPA greenhouse gas standards if they meet applicable standards for a model year.
  • Fuel industry and regulators: The bill sets technical definitions and standards for biodiesel, E85, M85, and plug-in electric drive vehicles and requires biodiesel to meet EPA registration and ASTM D6751. It bars EPA prohibition of biomass fuels and broadens Clean Air Act ethanol waivers so blends above 10 percent are more readily allowed, effective for model-year calculations starting in 2026.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Easier vehicle conversions and biomass protections

If enacted, the bill would say certain aftermarket alternative-fuel conversions are not "tampering" if they are matched and installed so emissions do not get worse. Installers would need to affix a label saying the conversion was added after the original sale. EPA could still ban conversions that are shown to degrade emissions. The bill would also bar the EPA from using this Act to prohibit or control "biomass fuel" as defined in the cited law. These changes would take effect on enactment.

Easier fuel-choice rules for automakers

If enacted, the bill would add new fuel and vehicle definitions and give automakers several compliance advantages. A qualifying maker (one with at least 50% "fuel choice enabling" vehicles in its U.S. fleet) would get an 8 miles-per-gallon bonus added to its fleet average for the model year. Credits earned for beating standards could be carried forward for up to five later model years. Qualifying makers that meet the section's standards would be treated as complying with EPA greenhouse gas rules. The bill also broadens ethanol-blend waiver language and sets technical definitions for E85, biodiesel, M85, and plug-in electric vehicles. These changes would apply to cars made for model year 2026 or later, except the ethanol-waiver language which would take effect on enactment.

Sponsors & CoSponsors

Sponsor

Paul, Rand [R-KY]

KY • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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