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Automobile and Light Truck Fuel Economy:
The CAFE Standards
Brent D. Yacobucci
Specialist in Energy and Environmental Policy
Robert Bamberger
Specialist in Energy Policy
April 23, 2010
Congressional Research Service
7-5700
R40166
CRS Report for Congress
Prepared for Members and Committees of Congress
Automobile and Light Truck Fuel Economy: The CAFE Standards
Summary
On May 19, 2009, President Obama announced a plan to integrate Corporate Average Fuel
Economy (CAFE) standards administered by the National Highway Traffic Safety Administration
(NHTSA) with automotive greenhouse gas (GHG) emissions standards to be issued by the
Environmental Protection Agency (EPA). On September 15, 2009, EPA and NHTSA issued
proposed rules and finalized those rules on April 1, 2010. The new rules will apply to cars and
light trucks (pickups, vans, and SUVs) for model year (MY) 2012 through MY2016. The
Administration had stated that the proposal would require an increase in fuel economy standards
to as much as 35.5 miles per gallon (mpg) by model year (MY) 2016, four years ahead of the
deadline set in the Energy Independence and Security Act of 2007 (EISA; P.L. 110-140). The
Administration estimates that the total cost of complying with EISA and the new proposal will
add about $950 to the cost of an average MY2016 vehicle (compared to MY2011), although the
Administration expects that this additional purchase cost will be paid back through lifetime fuel
savings. Whether or not the Obama Administration has understated these costs, as some have
argued, they are in line with cost estimates for EISA implementation
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