Corporate Average Fuel Economy (CAFE) Standards
Plain English Summary
Requires automakers to meet minimum fleet-wide fuel economy standards to reduce fuel consumption.
Full Text
Automobile manufacturers must achieve a minimum fleet-wide average fuel economy for passenger cars and light trucks. CAFE standards are set by NHTSA and increase over time to reduce fuel consumption and greenhouse gas emissions. Manufacturers that fail to meet the standards are subject to civil penalties.
Manufacturers may earn credits for exceeding the standards, which can be banked for up to five years or traded with other manufacturers. Alternative fuel vehicles and advanced technology vehicles may receive special treatment in CAFE calculations.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.