DOT and EPA Finalize 54.5 mpg Fuel Efficiency Standards for 2025 Models

EPA Administrator Jackson today announced final rules establishing an historic CAFE standard of 54.mpg to be achieved by car and light truck fleets by 2025. This rulemaking builds on the Obama Administration’s 35.5 mpg CAFE standard for 2011-2016 car and light truck fleets adopted in 2010. Combined, the Administrator expects these standards “will cut greenhouse gas emissions from cars and light trucks in half by 2025, reducing emissions by 6 billion metric tons over the life of the program – more than the total amount of carbon dioxide emitted by the United States in 2010.”

Presenting this as a negotiated standard established with the agreement of 13 major automakers, labor unions, and environmental and energy experts and public interest advocates, Administrator Jackson emphasized this standard is “technology forcing,” but also levels the playing field by providing regulatory certainty and alignment of state and federal requirements. It also includes targeted incentives to encourage early introduction of advanced technologies, including:

• Incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles;

• Incentives for hybrid technologies that achieve high fuel economy levels for large pickups;
• Incentives for natural gas vehicles;
• Credits for other technologies with GHG reduction and fuel economy potential

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