Restoring Affordability in Automobile Manufacturing

Full Title:
RAAM Act

Summary#

This bill, called the Restoring Affordability in Automobile Manufacturing Act (RAAM Act), would remove the federal statutory authority for corporate average fuel economy (CAFE) standards and block states from setting their own fuel-economy rules. The main goal stated in the bill is to make fuel-economy regulation a federal-only matter and to repeal the existing federal CAFE chapter.

  • Main change: repeals chapter 329 of title 49, United States Code (the statutory basis for federal CAFE standards), effective for vehicle model year 2029 and later.
  • Preemption: bars any State or local government from adopting or enforcing laws that require compliance with fuel-economy standards for automobiles.
  • Definitions: adds or adjusts statutory definitions for “automobile,” “dedicated automobile” (runs only on alternative fuel), and “dual fueled automobile” (can run on alternative fuel or gasoline/diesel and meets certain energy-efficiency tests).
  • Conforming edits: changes several other federal laws to remove references to the repealed CAFE chapter or to reflect the new definitions.
  • Judicial review: replaces an existing judicial-review provision with a new one that sets a 59‑day deadline to file petitions challenging regulations and specifies venue and certain court procedures.

What it means for you#

  • Manufacturers: For model year 2029 and later, the federal statutory CAFE requirements in the repealed chapter would no longer apply. The bill’s new definitions for types of automobiles would affect how certain vehicles are classified under other federal laws that are being updated.
  • States and local governments: May not adopt or enforce any law requiring compliance with fuel-economy standards for automobiles. State rules that set fuel-economy targets would be preempted.
  • Consumers / Car buyers: The bill does not itself create new consumer rules (for example on fuel labels), but removing federal CAFE law and blocking state standards could change what vehicles manufacturers offer and how they are marketed. This could affect fuel efficiency of new cars offered in the U.S. starting with model year 2029.
  • Dealers and sellers: The bill says people involved in purchase, manufacture, or sale of vehicles have a right to be free from state laws inconsistent with the federal preemption in the bill.
  • Federal agencies / regulators: Agencies that currently operate under or reference the repealed chapter would have to follow the new statutory text. The bill also changes the process and timing for judicial review of related regulations.

Expenses#

No publicly available information.

  • The bill text does not include a fiscal note or estimate of federal or state costs or savings.
  • Repealing a statute and preempting state rules could change agency workload and compliance costs, but the bill provides no cost figures or budget language.

Proponents' View#

  • The bill appears intended to centralize fuel-economy regulation at the federal level, preventing a patchwork of state rules.
  • A possible argument for the bill is that a single national standard simplifies compliance for manufacturers who sell vehicles across state lines.
  • The bill’s title and preemption language suggest supporters may see this change as promoting affordability in automobile manufacturing by reducing differing state requirements.

Opponents' View#

  • One concern is that repealing the federal CAFE statutory chapter removes the existing federal standard that currently guides vehicle fuel efficiency; the bill does not explain replacement standards or goals.
  • The preemption of state laws removes State or local authority to set their own fuel-economy requirements, which could limit options for states that want stronger rules.
  • The bill does not explain how existing regulations, program credits, or labeling tied to the repealed chapter would be handled during the transition to model year 2029. This raises questions about implementation and legal gaps.
  • The new judicial-review timing (59 days to file) could shorten the time available to challenge related regulations, which may affect parties seeking review.