Corporate Average Fuel Economy (CAFE) In the wake of the Arab oil embargo and petroleum shortages in the 1970's, Congress enacted the Energy Policy and Conservation Act (EPCA) in 1975. This Act created the Corporate Average Fuel Economy (CAFE) program under which mandatory fuel economy standards are set for passenger car and light truck fleets.
NHTSA, on behalf of the DOT, is proposing new corporate average fuel economy (CAFE) standards for passenger cars and light trucks for MYs 2027–2032, and new fuel efficiency standards for heavy-duty pickup trucks and vans (HDPUVs) for MYs 2030–2035. This legislation, as amended, requires that every manufacturer meet applicable specified corporate average fuel economy (CAFE) standards for their fleets of light-duty vehicles under 8,500 lbs. that the Start Printed Page 21526 manufacturer manufactures in any model year. Notes: CAFE = corporate average fuel economy. The figure depicts effects over the first 14 years (after which all current vehicles are assumed to be retired) from policy changes that would bring about a 10 percent reduction in gasoline consumption in the 15th year. Over the initial 14 years, a 46-cent-per-gallon increase in The new Corporate Average Fuel Economy, or CAFE, standards announced today by Transportation Secretary Pete Buttigieg require an 8% industrywide increase in average fuel efficiency in both 2024 The United States' first ever Corporate Average Fuel Economy (CAFE) standards were introduced in 1975 by Republican President Gerald Ford's administration. The standards were designed to curtail fuel consumption by encouraging innovative solutions from automakers. Since their inception, the CAFE standards have been regularly reviewed and tightened to continue to set a high but consistent bar

vehicle type with the highest fuel economy and lowest CO. 2 emissions, and towards vehicle . types with lower fuel economy and higher CO 2 emissions has offset some of the fleetwide benefits that otherwise would have been achieved from the improvements within each vehicle type. Figure ES-2. Production Share and Fuel Economy by Vehicle Type 35

NHTSA announced this week that in keeping with Biden’s energy directive in Executive Order 13990 it’s amended corporate average fuel economy (CAFE) standards for passenger cars and light trucks (think light duty vehicles) which calls for an 8% fuel economy uptick per year for 2024-2025 models and a 10% bump per year for 2026 models.
In June, Reuters first reported Stellantis and GM paid a total of $363 million in CAFE fines for failing to meet U.S. fuel economy requirements for prior model years. This week, the Obama administration finalized new-car fuel economy rules that’ll nearly double the mpg standards for cars and light trucks by 2025. The new “CAFE” (corporate average fuel economy) standards mandate that automakers average 54.5 mpg for their cars by 2025, compared to 29.7 mpg now. How will consumers and the auto industry as Major changes have recently been made to the Corporate Average Fuel Economy (CAFE) standards for cars and light trucks sold in the United States. These changes are a key component of policy efforts to address the problems of energy security and greenhouse gas emissions that contribute to climate change. consumers as average increases in MSRP, we estimate that per-vehicle costs paid by U.S. consumers for new vehicles would increase by roughly $1,000, on average, as compared to if the baseline standards were retained; but concurrently, fuel savings for those vehicles would increase significantly, by roughly $1,200, undiscounted, on average.
By Cars.com Editors. September 2, 2016. CARS.COM — Each year the EPA calculates corporate average fuel economy based on gas mileage estimates for each car in an automaker’s lineup, and the
The SAFE Vehicles Rule, if finalized, would amend certain existing Corporate Average Fuel Economy (CAFE) and tailpipe carbon dioxide emissions standards for passenger cars and light trucks and establish new standards, all covering model years 2021 through 2026. More specifically, NHTSA is proposing new CAFE standards for model years 2022 through 15Jj.
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