After more than a year of negotiations between government agencies, auto manufacturers, and other interested groups such as the United Auto Workers, the Obama administration has finalized rules that will raise the Corporate Average Fuel Economy (CAFE) to 54.5 mpg by 2025.
The administration had already set aggressive targets, previously calling for a CAFE of 35.5 mpg by 2016. As new advances in fuel-saving technologies showed that this target could easily be met, rules were drafted for the higher mark.
The Environmental Protection Agency and the Department of Transportation devise the formula by which CAFE is calculated. The … Read more