Government Agencies Set Final Rule on Fuel Economy Standards

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April 1, 2020—The final Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule were released Tuesday to set corporate average fuel economy (CAFE) and CO2 emissions standards for model years 2021-26 passenger cars and light trucks. 

The final rule will increase stringency of CAFE and CO2 emissions standards by 1.5 percent each year through model year 2026, as compared with the standards issued in 2012, which would have required about 5 percent annual increases. The majority of automakers are not meeting the 2012 standard without resorting to the use of credits.

The SAFE Vehicles Rule reflects lower oil prices from the original 2012 projection, increases in U.S. oil production, and growing consumer demand for larger vehicles.  

 According to NHTSA and EPA projections, it will also boost new vehicle sales through model year 2029 by up to 2.7 million vehicles.

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