Trump administration rescinds rule incentivizing EV production

Investing.com -- The Trump administration announced Wednesday it is rescinding an Energy Department rule that incentivized automakers to produce electric vehicles to meet federal fuel economy requirements.

The rescinded provision, known as the "fuel content factor," allowed automakers to count electric vehicles at artificially high fuel-economy values when calculating their fleetwide averages under Corporate Average Fuel Economy (CAFE) rules.

Environmental groups have long criticized these calculations for overstating the energy savings of electric vehicles. The Energy Department cited a September appeals court decision as the basis for removing the provision.

The department also indicated it plans to propose additional revisions to its fuel economy calculation methodology in the future.

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