CAFE 49.6 mpg by 2025; fully supported by manufacturers, citizens and small businesses

The U.S. Environmental Protection Agency and the U.S. Department of Transportation today formally unveiled their joint proposal to set stronger fuel economy and greenhouse gas emissions standards for model year 2017-2025 passenger cars and light trucks.


The proposed Corporate Average Fuel Economy, or CAFE, standards are projected to require 40.1 miles per gallon in model year 2021, and 49.6 mpg in model year 2025, on an average industry fleet-wide basis for cars and trucks combined.

The EPA's proposed greenhouse gas standards, which are harmonized with the CAFE standards, are projected to require emissions of no more than 163 grams/mile of carbon dioxide, CO2, in model year 2025. This CO2 standard is equivalent to 54.5 mpg if this level of emissions were achieved solely through improvements in fuel efficiency, the EPA says.

Cars, SUVs, minivans, and pickup trucks are currently responsible for nearly 60 percent of U.S. transportation-related petroleum use and greenhouse gas emissions.

These proposed standards will cut oil consumption by four billion barrels and cut two billion metric tons of greenhouse gas emissions over the lifetimes of the vehicles sold in those years, the agencies said.

Mitch Bainwol, president and CEO of the Alliance of Automobile Manufacturers, said, "This proposal continues the approach of establishing a single, national fuel economy program for fuel economy and greenhouse gas emissions, which is the right overall direction."

The Alliance of Automobile Manufacturers is a trade association of 12 car and light truck manufacturers including BMW, Chrysler, Ford, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, Volkswagen and Volvo.

"Today, on dealers' lots, there are more than 265 models that achieve 30 plus miles per gallon, with more coming," he said. "Sales of these and even more fuel-efficient vehicles will be critical to achieve these policy goals."

Today's action builds on the success of the first phase of the Obama administration's national program, which covers the model years 2012-2016. These earlier CAFE standards raise fuel efficiency equivalent to 35.5 mpg by 2016 and result in an average light vehicle tailpipe CO2 level of 250 grams per mile.

Automakers say the newly proposed CAFE standards will create more jobs.

Small Business Majority founder and chief executive John Arensmeyer said his members are behind the new CAFE standards.

"Our poll of more than 1,200 small business owners across the country found 87 percent of small business owners overwhelmingly support adopting strong standards now, and 80 percent support requiring the auto industry to increase mileage to 60 mpg by 2025 - an even stronger standard than the one the Obama Administration has announced."

Support from small businesses for increasing fuel economy standards is high in states with large auto manufacturing sectors, including Michigan (73 percent) and Ohio (75 percent), Arensmeyer said.

There is also strong support (71 percent) in the influential automotive market of California, which is preparing to update its Clean Cars Program aimed at reducing carbon emissions from cars sold in the state, he said.

California plans to issue its proposal for model year 2017-2025 vehicle greenhouse gas standards on December 7 and will finalize its standards in January.