Despite technological advances, average fuel economy of new cars and light trucks has declined from its peak in 1988 and has remained below that level due to increasing vehicle size and power, the rising market share of light trucks, and the lack of tougher CAFE standards. The original standards for cars were adopted in 1975 and went unchanged for 35 years.

On April 1st, 2010 the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) issued harmonized fuel economy and greenhouse gas (GHG) emissions standards for cars and light trucks of model years 2012 through 2016. The joint rulemaking marks the first major increase in fuel economy standards in over three decades, and the first national GHG standards for vehicles. Under the agencies’ projected sales mix, cars and light trucks together would achieve an average of 34.1 miles per gallon by 2016, up 30 percent from the 2008 average of 26.3 miles per gallon. The rule will accelerate achievement of the 35-miles-per-gallon level mandated for 2020 by the Energy Independence and Security Act of 2007.

To facilitate compliance with the higher standards, recent fuel economy legislation should be complemented by a combination of policies, including: incentives for the purchase of highly- efficient vehicles; consumer education efforts; and continuing vigorous R&D on fuel-efficient, low-emissions vehicles.

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