Fuel Economy

On August 28, 2012, the U.S. Federal Government announced it had finalized 2017-2025 Corporate Average Fuel Economy (CAFE) rules that set 54.5 mpg as the fleet average for cars and trucks by 2025. That number—54.5—garnered dramatic headlines, suggesting that in a little more than a decade American roads will be filled with lots of hybrids and city-sized gas cars. The reality of the rule, especially as it relates to electric vehicles and plug-in hybrids, is more nuanced and complicated.

“The CAFE rule is a dense document, something like 1,000 pages,” said Genevieve Cullen, vice-president of the Electric Drive Transportation Association, a trade association representing carmakers, utilities and EV equipment suppliers. While very few people have read every line of the document, one critical provision is clear: CAFE has no technology mandate, for electric drive or any other technology.