Evolution of CAFE Standards: Comprehensive Insight into Their Development
In the wake of the oil crisis of 1973, the United States government enacted the Corporate Average Fuel Economy (CAFE) standards for passenger vehicles in 1975. The initial CAFE standard for model year 1978 vehicles was set at 18 miles per gallon (mpg), with light trucks following suit at 17.2 mpg for 2WD light trucks and 15.8 mpg for 4WD light trucks.
From 1978 to 1985, CAFE standards for passenger cars rose to 27.5 mpg, while those for light trucks fluctuated but remained around 19 mpg. In 1982, light truck manufacturers were given the option to follow separate rules for 2WD and 4WD light trucks or have a combined standard.
From 1986 to 1989, CAFE standards were slightly lowered to 26 mpg for passenger cars but remained at 20.5 for combined light trucks. During this period, the Clinton administration had moved to increase standards for light trucks, which was denied by Congress.
In 1985, the combined CAFE standard for light trucks was increased to 19.5 mpg. The U.S. government under President George W. Bush enacted the Energy Independence and Security Act in 2007, which increased the CAFE standards by about 40%. As a result, the combined standard for light trucks was increased from 21 mpg in 2005 to 23.4 in 2010.
In 2005, the Bush administration began looking into adjusting the CAFE standards, and in 2010, the Obama administration proposed CAFE standards for medium-duty and heavy-duty trucks, aiming to save "500 million barrels of oil and 250 million metric tons of carbon dioxide emissions in the first five years."
From 1990 to 2005, there were not many changes to the CAFE standards throughout the 1990's and early 2000's. Then-president Barack Obama increased the standard to 35.5 mpg by model year 2016, with annual increases of about 5%.
Numerous automakers have stated they will continue on with the plan to meet the current CAFE standards and improve fuel efficiencies regardless of any changes. However, the future of the CAFE standards remains uncertain, with President Trump and his administration delaying the rule to weaken Obama-era automobile efficiency requirements and planning to revisit the topic in September.
In June 2019, numerous automakers sent a letter to Trump urging him to stop the possible rollback of the standards, stating that prices would rise and the environment would suffer. The Obama administration's proposal for SAFE Vehicles Rules, which aimed to make the CAFE standards more lenient, was initiated by President Donald Trump's administration in 2018.
Despite the uncertainty surrounding the CAFE standards, one thing is clear: the need for improved fuel efficiency and reduced carbon emissions remains a pressing concern for both the automotive industry and the environment.
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