Tag Archives: Corporate Average Fuel Economy

Trump Mis-Administration Proposes a Weaker CAFE

The Trump Mis-Administration today proposed to reduce fuel efficiency standards for cars and light trucks. Obviously, this would significantly raise the cost of driving a car for years to come. It also could also damage the competitiveness of U.S. automakers in a global industry. The preliminary Notice of Proposed Rulemaking – not yet officially published in the Federal Registers as required –  would gut standards set by the Transportation Department’s National Highway Traffic Safety Administration in 2024. Those standards would save owners of personal vehicles an average of more than $600 in fuel costs over the life of a new vehicle. Continue reading

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Petroleum Equivalency Factor Change Slows EV Adoption

The Environmental Protection Agency’s (EPA) final greenhouse gas and criteria pollutant rules for light-duty vehicles covering model years 2027-2032 is about to be to be announced. It’s part of a tangled maze of regulations from multiple federal and state agencies affecting automakers and ultimately consumers in the US, often referred in shorthand as CAFE – corporate average fuel economy.

In the latest development, The Department of Energy last year proposed decreasing the so-called “petroleum-equivalent fuel economy factor” (PEF) for EVs by 72% in 2027. The Petroleum Equivalency Factor expresses electric vehicle efficiency as equivalent-miles-per-gallon of gasoline for purposes of the EPA’s calculation of manufacturers’ compliance with NHTSA’s CAFE regulations. DOE is responsible for establishing the value of the PEF. With a final rule, issued yesterday,  the PEF will be established for model years beginning in 2027. It slows forcing EV adaption, and in AutoInformed’s view this is a good thing. Continue reading

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