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NHTSA Proposed Rule: Light-Duty Vehicle Corporate Average Fuel Economy Standards

In accordance with the President’s “Unleashing American Energy” Executive Order and the Secretary’s “Fixing the CAFE Program” Memorandum, NHTSA is publishing a Notice of Proposed Rulemaking, The Safer Affordable Fuel-Efficient (SAFE) Vehicle Rule III for Model Years 2022 to 2031 Passenger Cars and Light Trucks. The rule resets the maximum feasible fuel economy standards in accordance with the Energy Policy and Conservation Act of 1975, the Energy Independence and Security Act of 2007, and other applicable law.  The proposed rulemaking also seeks to bring the CAFE program into compliance with relevant statutory requirements. NHTSA is proposing to eliminate the inter-manufacturer credit trading system and to amend the light-duty vehicle fleet classification system to allocate vehicles into passenger and non-passenger automobile fleets appropriately, based on their attributes and capabilities, starting in MY 2028. NHTSA projects that the amended standards would correspond to the industry fleetwide average for all light-duty vehicles of roughly 34.5 miles per gallon (mpg) in MY 2031.