The Fuel Choice and Deregulation Act of 2025 reduces federal regulations on alternative fuel vehicles and conversions. It allows people to convert existing vehicles to run on alternative fuels (like biodiesel, E85, or methanol) without federal approval, as long as the conversion doesn't increase emissions. The bill also prevents the EPA from regulating biomass fuels and creates incentives for automakers who produce vehicles capable of running on alternative fuels, giving them an 8 mile-per-gallon credit toward fuel economy standards and automatic compliance with greenhouse gas regulations. Additionally, it expands the ethanol waiver to allow fuel blends with more than 10 percent ethanol. The changes generally take effect for vehicles manufactured in model year 2026 and later, making it easier for consumers and manufacturers to adopt alternative fuels while reducing the federal government's oversight role.
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