IB90122
Automobile and Light Truck Fuel Economy: Is CAFE Up to Standards?
June 13, 2002

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University of North Texas Libraries

Summary:

One of the least controversial provisions of the Energy Policy and Conservation Act of 1975 (P.L. 94-163) established corporate average fuel economy (CAFE) standards for new passenger cars. As oil prices rose, there was little expectation that manufacturers would have any difficulty complying with the standards. However, oil prices softened and the demand for small cars diminished. In response to petitions from manufacturers facing stiff civil penalties for noncompliance, the National Highway Traffic Safety Administration (NHTSA) relaxed the standard for model years 1986-1989. The current standard is 27.5 mpg for passenger automobiles and 20.7 mpg for light trucks, a classification that also includes sports utility vehicles (SUVs). An attempt in the 102nd Congress to raise CAFE proved too controversial and was dropped from omnibus energy policy legislation before it could pass (Energy Policy Act of 1992, P.L. 102-486). The Clinton Administration supported greater fuel efficiency, but indicated in 1993 that an increase in the CAFE standards was not the option likeliest to be embraced first. In 1994, the National Highway Traffic Safety Administration (NHTSA) issued a notice of proposed rulemaking to explore raising the CAFE standard for light-duty trucks. Congress included language in the FY1996-FY2001 DOT Authorizations (P.L. 104-50, P.L. 104-205, P.L. 105-66, P.L. 10669, and P.L. 106-346) prohibiting the use of appropriated funds for any rulemaking on CAFE, effectively freezing the standards. However, the Senate conferees to the FY2001 appropriations insisted upon a study of CAFE by the National Academy of Science (NAS). That study, released on July 30, 2001, concluded that it was possible to achieve a more than 40% improvement in light truck and SUV fuel economy over a 10-15 year period at costs that would be recoverable over the lifetime of ownership. On May 1, 2001, Senator Diane Feinstein, joined by three co-sponsors, introduced legislation (S. 804) that would raise the CAFE standard for light duty trucks and SUVs to 27.5 mpg ­ the same standard as for passenger automobiles ­ by MY (model year) 2007. On July 12, 2001, the House Subcommittee on Energy and Air Quality adopted an amendment in markup to H.R. 2587 that called for a reduction of 5 billion gallons in light-duty truck fuel consumption over the period of MYs 2004-2010. This proposal came to the House floor on August 1, 2001, as part of H.R. 4, the Securing America's Future Energy Act. An amendment to establish a combined passenger car and truck CAFE of 27.5 mpg by MY2007 was defeated 160-269. The NAS study, released two days earlier, figured prominently in the debate. The Senate began debate on comprehensive energy legislation at the end of February 2002. Senators Kerry and McCain reached a compromise to propose a combined fleetwide average of 36 mpg by MY2015. However, on March 13, 2002, the Senate voted (62-38) for an amendment to charge NHTSA with development of new CAFE standards. The Senate then approved an amendment (56-44) to freeze "pickup trucks" at the current light truck standard of 20.7 mpg. The Senate passed its energy bill April 25 (88-11). The conference on H.R. 4 will begin soon. [See CRS Report RL31427 for a side-by-side comparison.]