For the first time in 19 years, the U.S. government is increasing the Corporate Average Fuel Economy  known as the CAFE standard. According to NPR, the average fuel efficiency of American vehicles declined from 1990 to 2005, due to an increase in SUVs, which are not covered by CAFE standards. President Obama’s plan calls for a fuel efficiency of 35 miles per gallon by 2016 for cars and light trucks, roughly 20% higher than today’s requirements of 27.5 mpg.

The National Highway Traffic and Safety Administration oversees the regulation. According to their website, the CAFE standard “is the sales weighted average fuel economy, expressed in miles per gallon (mpg), of a manufacturer’s fleet of passenger cars or light trucks. . . . Fuel economy is defined as the average mileage traveled by an automobile per gallon of gasoline (or equivalent amount of other fuel) consumed as measured . . . by the Environmental Protection Agency (EPA).” The site explains that CAFE originated as a result of

The “Energy Policy Conservation Act,” enacted into law by Congress in 1975, added Title V, “Improving Automotive Efficiency,” to the Motor Vehicle Information and Cost Savings Act and established CAFE standards for passenger cars and light trucks. The Act was passed in response to the 1973-74 Arab oil embargo. The near-term goal was to double new car fuel economy by model year 1985.

In addition to increased fuel efficiency standards, American Public Radio’s Marketplace reports that President Obama will also call for the first national fuel emissions limits for cars and light trucks. As proposed, the emissions reductions would fall in line with state measures, such as California’s 2002 legislation aimed at curbing carbon dioxide from cars. Taken with the 35 mpg initiative, these plans will add an average additional $1,300 (US) to the cost of each new vehicle. The new standards are expected to lead to an increase in gasoline-electric hybrids, plug-in hybrids, and electric vehicles, all of which will increase the average fuel efficiency of the American fleet.

- Eric Wilson

[image source: NPR]