Corporate Average Fuel Economy (CAFE): A Comparison of Selected Legislation in the 110th Congress

Order Code RL33982

Corporate Average Fuel Economy (CAFE):

A Comparison of Selected Legislation in

the 110th Congress

Updated August 16, 2007

Brent D. Yacobucci

Specialist in Energy Policy

Resources, Science, and Industry Division

Robert Bamberger

Specialist in Energy Policy

Resources, Science, and Industry Division

Corporate Average Fuel Economy (CAFE):

A Comparison of Selected Legislation in

the 110th Congress

Summary

The rise in crude oil and gasoline prices since the winter of 2006 has renewed

the focus on U.S. fuel consumption in the transportation sector. Wider concerns over

greenhouse gas emissions and climate change have contributed to interest in reducing

fossil fuel consumption and improving the efficiency of the U.S. transportation

sector. Possible changes to the federal Corporate Average Fuel Economy (CAFE)

standards are one policy option to address the issue.

CAFE standards are fleetwide fuel economy averages that manufacturers must

meet each model year. Currently, separate CAFE standards are established for

passenger cars and light trucks, which include sport utility vehicles (SUVs), vans,

and pickup trucks. Several bills have been introduced in the 110th Congress to

modify the CAFE program. Senate energy legislation, H.R. 6, passed that body on

June 21, 2007; the bill includes language on CAFE. On August 3, 2007, the House

passed energy legislation — H.R. 3221 (241-170) and H.R. 2776 (221-189) — but

these bills did not include CAFE provisions. Two House bills addressing CAFE

(H.R. 1506, H.R. 2729) were circulated as possible amendments, but neither were

debated on the House floor.

This report provides a side-by-side comparison of these and other bills in the

110 Congress addressing passenger vehicle fuel economy in general and the CAFE

program specifically. The bills are compared on various policy options including, but

not limited to, the types of provisions identified above. The report also compares

provisions in bills that would establish greenhouse gas emissions standards for

passenger cars outside of the CAFE structure. Such emissions standards would likely

also have the effect of increasing fuel economy.

th

One issue in the CAFE debate over the years has been whether Congress should

set CAFE standards or delegate that authority exclusively to NHTSA. For passenger

cars, the original EPCA legislation established specific targets for model year (MY)

1978 and MY1985, and required that the Secretary of Transportation set standards

for the interim years. Some of the current proposals would also set specific targets

in the future; others would require annual improvements in CAFE by some specified

percentage. In some instances, both approaches are used. Those proposals would

establish a mandated CAFE by a certain date and require subsequent annual

percentage increases. Some bills would also require NHTSA to set the maximum

feasible interim standards.

Another key question is the form CAFE standards should take. One bill would

require that the CAFE standard be expressed in grams per mile of carbon dioxide

emissions (CO2), in addition to miles per gallon. States are pre-empted from

establishing their own CAFE standards but are permitted to set clean air

requirements. This has generated controversy, and some believe a requirement to

report fuel economy as a function of CO2 emissions is intended to have some bearing

on the differing treatment of the states between CAFE and emissions standards.

Contents

Background: Establishment of the CAFE Standards . . . . . . . . . . . . . . . . . . . . . . . 1

Recent CAFE Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Policy Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Policy Options Within CAFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Combined Passenger Car/Light Truck Standards . . . . . . . . . . . . . . . . . 3

Definition of “Automobile” and “Light Truck” . . . . . . . . . . . . . . . . . . . 3

Mandated Numeric Increase in CAFE Standards . . . . . . . . . . . . . . . . . 3

Mandated Percentage Increase in CAFE Standards . . . . . . . . . . . . . . . . 3

Regulatory Flexibility/Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Expanded Considerations for Maximum Feasible Fuel Economy . . . . . 4

Attribute-Based Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Credit Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Carbon Dioxide Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Bush Administration Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Non-CAFE Policy Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Comparison of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

List of Tables

Table 1. Comparison of Senate CAFE Bills in the 110th Congress . . . . . . . . . . . 7

Table 2. Comparison of House CAFE Bills in the 110th Congress . . . . . . . . . . . 13

Table 3. Comparison of Bills To Establish Automobile Greenhouse Gas

Standards in the 110th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Corporate Average Fuel Economy (CAFE):

A Comparison of Selected Legislation

in the 110th Congress

The rise in crude oil and gasoline prices since the winter of 2006 has renewed

the focus on U.S. fuel consumption in the transportation sector. Wider concerns over

greenhouse gas emissions and climate change have contributed to interest in reducing

fossil fuel consumption and improving the efficiency of the U.S. transportation

sector. Among the various policy options to address the issue are changes to the

federal Corporate Average Fuel Economy (CAFE) standards.1 CAFE refers to the

average miles per gallon used by a manufacturer’s entire fleet of cars or light trucks

in a given model year.

Various bills in the 110th Congress would modify the CAFE program to increase

fuel economy standards for all vehicles, heighten the stringency of testing procedures,

and/or grant the National Highway Traffic Safety Administration (NHTSA) broader

authority to implement the program. In the Senate, S. 357 was reported, as amended,

from the Committee on Commerce, Science, and Transportation on May 8, 2007.

Some of its provisions were inserted, along with other energy initiatives reported

from committee, into S.Amdt. 1502 to H.R. 6. H.R. 6 passed the Senate June 21,

2007 and includes CAFE language.

On August 3, 2007, the House passed energy legislation — H.R. 3221 (241-170)

and H.R. 2776 (221-189) — but these bills did not include CAFE provisions. Two

House bills addressing CAFE (H.R. 1506, H.R. 2729) were circulated as possible

amendments, but neither were debated on the House floor. Some argued that it would

strengthen House negotiations with the Senate in conference if the House bill had

also included CAFE provisions. An effort to add CAFE language to House energy

legislation was defeated on June 28th in a House Committee on Energy and

Commerce markup (26-31). It is possible that provisions of H.R. 1506 and H.R. 2927

may figure in discussions should an energy bill reach conference.

Background: Establishment of the CAFE Standards

The Arab oil embargo of 1973-1974 and the subsequent tripling in the price of

crude oil brought into sharp focus the fuel inefficiency of U.S. automobiles. New car

fleet fuel economy had declined from 14.8 miles per gallon (mpg) in model year

(MY) 1967 to 12.9 mpg in 1974. In the search for ways to reduce dependence on

imported oil, automobiles were an obvious target. The Energy Policy and

1

For more information on CAFE, see CRS Report RL33413, Automobile and Light Truck

Fuel Economy: The CAFE Standards, by Brent D. Yacobucci and Robert Bamberger.

CRS-2

Conservation Act (EPCA, P.L. 94-163) established CAFE standards for passenger

cars for MY1978. The CAFE standards called for an eventual doubling in new car

fleet fuel economy. EPCA also granted NHTSA the authority to establish CAFE

standards for other classes of vehicles, including light-duty trucks.2 NHTSA

established fuel economy standards for light trucks, beginning in MY1979. For

passenger cars, the current standard is 27.5 miles per gallon (mpg) for MY2007. For

light trucks, the standard is 22.2 mpg for MY2007.

Under EPCA, the Secretary of Transportation has the discretion to adjust the

passenger car standard within a range from 26.0 to 27.5 mpg. Any increase above

27.5 mpg or below 26.0 mpg requires the Secretary to issue an amendment to the

standards. That amendment would be in force unless either chamber of Congress

disapproves. However, this one-House veto could be judged to be unconstitutional.3

The Secretary has much broader discretion with respect to setting light truck fuel

economy standards (referred to in the regulations as “non-passenger automobiles”).

This includes the authority to establish different standards for different classifications

of these vehicles.

Recent CAFE Regulations

In April 2006, NHTSA promulgated new CAFE rules for light trucks. After

MY2007, light truck manufacturers may voluntarily comply with a new “reformed”

standard based on the size of each specific manufacturer’s vehicles. Starting in

MY2011, all light truck makers will be subject to the reformed standards, which

NHTSA estimates will be equivalent to about 24.0 mpg under the old system. EPCA

gives NHTSA the authority to modify the light truck standards as it sees fit, including

setting standards based on vehicle attributes (in this case, size). EPCA does not grant

similar flexibility in application of the passenger car standard.

Policy Options

Policy Options Within CAFE

Several bills would amend the current CAFE program to increase CAFE

standards, change testing procedures, and/or grant NHTSA broader regulatory

discretion. CRS analyzed 12 CAFE-related bills with regard to several key policy

options:

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2

3

combined passenger car/light truck standards,

definition of “automobile” and “light truck,”

mandated numeric increase in CAFE standards,

mandated percentage increase in CAFE standards,

Light-duty trucks include most sport utility vehicles (SUVs), vans, and pickups.

For more information see CRS Report RS22132, Legislative Vetoes After Chadha, by

Louis Fisher.

CRS-3

!

!

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regulatory flexibility/authority,

expanded considerations for maximum feasible fuel economy,

attribute-based standards,

credit trading,

carbon dioxide emissions, and

other key provisions.

None of these policy options is mutually exclusive, and any or all options could be

adopted together. Each of these options is discussed below.

Combined Passenger Car/Light Truck Standards. One criticism of the

current CAFE program is its separate treatment of light trucks and passenger cars.

When EPCA was first enacted, most light trucks were used solely as work vehicles,

and they constituted a relatively small percentage of the light-duty vehicle fleet.

Since that time, light trucks, which include sport utility vehicles (SUVs) and vans,

are used more and more as passenger vehicles. Currently, light trucks make up

roughly half of the new light-duty vehicle market. As a consequence, some argue

that the distinction between the two fleets should be eliminated. Critics also allege

that specifications for some car-like vehicle models may have been designed

purposefully to qualify those vehicles for the lower mpg standard that applies to the

light truck fleet.

Definition of “Automobile” and “Light Truck”. Passenger car and light

truck standards could be combined by simply expanding the definition of “passenger

automobile” to include light trucks up to 8,500 pounds. Some proponents of tighter

standards argue that light trucks should be treated as passenger vehicles.

Further, some light trucks are too heavy to be included under the current CAFE

standard. Therefore, some proposals would expand the definition of “automobile”

or “light truck” to include all vehicles up to 10,000 pounds gross weight (current

standards cover vehicles up to 8,500 pounds gross weight). Other proposals would

expand CAFE standards to some heavier vehicles (e.g. SUVs and passenger vans) but

would exclude “work trucks” (e.g. pickups and cargo vans).

Mandated Numeric Increase in CAFE Standards. Some analysts argue

that price volatility in oil markets sends inconsistent signals to prospective new car

purchasers, and that the only way to avoid these mixed signals would be to mandate

higher CAFE standards. Some legislative proposals would require NHTSA to

establish new CAFE standards set at a fixed mpg target in a given year. Various

proposals would mandate increased standards for passenger cars, light trucks, or

both.

Mandated Percentage Increase in CAFE Standards. While some bills

would mandate an increase in the CAFE standards to specified levels, others would

require NHTSA to set rules to increase fuel economy by a set percentage every year.

In most cases, the bills mandate an annual CAFE increase of 4% from the previous

year. The bills vary on whether the increase would cover passenger cars, light trucks,

or both.

CRS-4

Regulatory Flexibility/Authority. As was mentioned above, NHTSA

currently has limited authority to modify the specific mpg target or the general design

of passenger car CAFE standards. Some legislative proposals would significantly

broaden NHTSA’s authority to amend the program, including allowing NHTSA to

set higher passenger car standards than EPCA currently allows. Currently, any

increase above 27.5 mpg or below 26.0 mpg requires the Secretary to issue an

amendment to the standards. That amendment is to be in force unless either chamber

of Congress disapproves.

Other proposals would allow NHTSA to extend the current single-year

compliance period to multiyear periods. Such a proposal, for example, might allow

NHTSA to require manufacturers to meet a set CAFE average for MY2011 through

MY2013, instead of requiring that the CAFE average be achieved in each model year.

Expanded Considerations for Maximum Feasible Fuel Economy.

Current law requires NHTSA to consider various factors in determining “maximum

feasible average fuel economy.” NHTSA must consider “technological feasibility,

economic practicability, the effect of other motor vehicle standards of the

government on fuel economy, and the need of the United States to conserve energy.”4

Some of the bills would add a further dimension, “cost-effectiveness,” and stipulate

weighing of several factors in assessing the cost-effectiveness of any proposed

changes in the standards. Among these factors are value to consumers, economic

security, national security, foreign policy, and the impact of oil use on various other

national policy concerns.

Attribute-Based Standards. As noted above, NHTSA has established sizebased CAFE standards for light trucks but does not have similar authority for

passenger cars. Some proposals would allow NHTSA to establish multiple levels of

passenger car CAFE standards for a given model year. The levels could be based on

a variety of vehicle attributes, including size and/or weight. The Senate-passed H.R.

6 would require attribute-based standards. H.R. 6 would also require that, after

enactment, the Secretary of Transportation would initiate a study toward developing

a fuel economy program to raise the vehicle fuel efficiency of medium- and heavyduty trucks.

Credit Trading. For each model year, automakers must meet separate CAFE

targets for three new vehicle fleets: domestically produced passenger cars, imported

passenger cars, and light trucks. In any year that a manufacturer exceeds the CAFE

standard for one of these given fleets, that manufacturer may “bank” credits for use

in meeting future year requirements. Conversely, in any year that the manufacturer

comes up short, it may “borrow” credits from an anticipated surplus in future years.

Under the current CAFE program, banked or borrowed credits may be used only for

the fleet in which they originated. For example, if an automaker generates credits for

its fleet of imported passenger cars, those credits may not be applied to its fleets of

domestic cars or light trucks. Similarly, automakers may not trade credits with other

automakers. However, some of the legislative proposals would allow a manufacturer

to move credits between fleets and/or trade credits with another manufacturer.

4

49 U.S.C. 32902(f)

CRS-5

Carbon Dioxide Standards. One bill, H.R. 2927, would require that new

CAFE standards be expressed in grams per mile of carbon dioxide (CO2), in addition

to miles per gallon. Under EPCA, states are pre-empted from establishing their own

CAFE standards. But the Clean Air Act permits states to set their own clean air

requirements. This has generated controversy, and some believe a requirement to

report fuel economy as a function of CO2 emissions is intended to have some bearing

on the differing treatment of the states between CAFE and emissions standards.

Some of these matters are currently being litigated.

Bush Administration Proposal

In his 2007 State of the Union address, President Bush outlined a goal of

reducing gasoline5 consumption by 20% from projected levels in 2017. Of that 20%

reduction, the President proposed that 15% come from the increased use of renewable

and alternative fuels, and that 5% come from increased vehicle fuel efficiency. It has

been estimated that an annual 4% increase in CAFE standards would lead to a 5%

reduction in projected gasoline consumption in 2017. The Bush Administration has

not proposed legislation that would mandate an increase in CAFE standards.

On February 6, 2007, NHTSA submitted draft legislation to the House Energy

and Commerce Committee on the Bush Administration’s CAFE proposal.6 The

Administration’s proposal would not require an increase in fuel economy standards

but would grant NHTSA broader regulatory authority. The draft would allow

NHTSA to establish attribute-based standards for passenger cars and would allow for

CAFE credit trading.

Non-CAFE Policy Options

In addition to bills modifying the CAFE program, several other bills have been

introduced that would likely increase vehicle fuel economy through other measures.

For example, several bills requiring reductions in carbon dioxide and other

greenhouse gas emissions have been introduced. Of those bills, two would require

per-mile emissions reductions from passenger vehicles. While such emissions

standards would not technically constitute a change in fuel economy standards,

automakers and others contend that there is no way other than fuel economy increases

to reduce automobile greenhouse gas emissions.7

5

Gasoline is only one part of oil consumption (albeit the largest), and thus a 20% reduction

in gasoline consumption translates to a smaller reduction in overall petroleum consumption.

6

As of February 22, 2007, no Member has sponsored and introduced the Administration’s

proposal.

7

For more information on climate change bills, see CRS Report RL33846, Climate Change:

Greenhouse Gas Reduction Bills in the 110th Congress, by Larry Parker and Brent D.

Yacobucci.

CRS-6

Comparison of Legislation

Of the 14 CAFE bills compared, the eight Senate bills are compared in Table

1 and the four House bills are compared in Table 2. The two bills to control

greenhouse gas emissions from passenger cars are compared in Table 3.

CRS-7

Table 1. Comparison of Senate CAFE Bills in the 110th Congress

S. 183

(Stevens)

S. 357 (Feinstein)

[as introduced]

S. 767 / S. 768

(Obama)

S. 875

(Lugar)

S. 1118

(Dorgan)

H.R. 6 - Senate

Version (Reid)

Bill Title

Improved Passenger

Automobile Fuel

Economy Act of 2007

Ten-in-Ten Fuel

Economy Act

Fuel Economy Reform

Act

Security and Fuel

Efficiency (SAFE)

Energy Act of 2007

Fuel Efficiency

Energy Act of 2007

Ten-in-Ten Fuel

Economy Act

Combined

Passenger

Car/Light Truck

Standards

No provision.

Passenger car and light

truck standards

combined starting in

MY2013. [Sec. 2]

Passenger car and light

truck standards

combined starting in

MY2013. [Sec. 4]

No provision.

No provision.

Passenger car and light

truck standards

combined starting in

MY2011. [Sec. 502]

Change in

Definition of

“Automobile” or

“Light Truck”

No provision

Expands light truck

definition to include

vehicles between

8,500 and 10,000

pounds that are not

“work trucks” — i.e.

not heavier pickups

and vans [Sec. 5]

Expands definition of

“passenger

automobile” to include

all vehicles of up to

10,000 pounds

designed to carry less

than 10 passengers.

[Sec. 3]

Establishes that 4wheel drive is neither

necessary nor

sufficient to qualify

vehicle as a light-duty

truck. [Sec. 2]

Establishes that 4wheel drive is neither

necessary nor

sufficient to qualify

vehicle as a light-duty

truck. [Sec. 2]

Includes light trucks

between 8,500 and

10,000 pounds that are

not “work trucks” —

i.e. not heavier

pickups and vans.

[Sec. 504]

Mandated

Numeric Increase

in CAFE

Standards

40 mpg for passenger

cars only by MY2017.

During interim, the

Secretary of

Transportation must

set standards for each

individual

manufacturer at

maximum feasible

level. [Sec. 101]

35 mpg for combined

fleets by MY2019.

[Sec. 2]

27.5 mpg for

combined fleets by

MY2013. [Sec. 4]

No provision.

No provision.

35 mpg for combined

automobile and light

truck fleets by

MY2020. [Sec. 502]

Interim MY2010

standards of 29.5 mpg

for passenger cars and

25.5 mpg for light

trucks. [Sec. 2]

CRS-8

S. 183

(Stevens)

Mandated

Percentage

Increase in CAFE

Standards

An annual, fixed

percentage increase is

specifically prohibited.

[Sec. 101]

S. 357 (Feinstein)

[as introduced]

No provision.

S. 767 / S. 768

(Obama)

S. 875

(Lugar)

S. 1118

(Dorgan)

H.R. 6 - Senate

Version (Reid)

For MY2010 through

MY2012, requires a

4% annual increase in

passenger car fuel

economy. [Sec.

106(a)(3)]

For MY2013 through

MY2030, requires a

mandatory annual fuel

economy increases of

4% for each class of

vehicles. [Sec. 102]

Starting in MY2013,

requires that CAFE

standard for each class

of vehicles be

increased by 4% over

the previous model

year’s standard. [Sec.

3]

Requires the Secretary

of Transportation to

establish procedures to

ensure the maximum

feasible increase in

fuel efficiency for

medium- and heavyduty commercial

vehicles. [Sec. 502]

The Secretary shall

establish average fuel

economy standards for

medium-duty trucks

that are consistent with

the projected benefits

of hybridization. In

this section, the term

‘medium-duty truck’

means a truck (as

defined in section

30127) with a gross

vehicle weight

between 10,000 and

26,000 pounds.

Same as S. 875.

Would require the

Secretary of

Transportation, 18

months after

enactment, to initiate a

study that could lead

to the establishment of

fuel economy

standards, or other

policies, to improve

the fuel efficiency of

medium- and heavyduty on-highway

trucks. Any program

would provide a lead

time of 4 model years

and make no changes

in any targets at less

than three-year

Starting in MY2013,

establishes a

mandatory annual fuel

economy increase of

4% for passenger cars

and light trucks

combined. [Sec.

106(a)(3)]

Improving Fuel

Efficiency of

Medium and

Heavy-Duty

Trucks

No comparable

provision

No comparable

provision.

No comparable

provision.

CRS-9

S. 183

(Stevens)

S. 357 (Feinstein)

[as introduced]

S. 767 / S. 768

(Obama)

S. 875

(Lugar)

S. 1118

(Dorgan)

H.R. 6 - Senate

Version (Reid)

intervals.

Regulatory

Flexibility/

Authority

NHTSA is authorized

to establish multiyear

compliance periods

instead of the current

single-year

compliance period.

[Sec. 101]

Standards may be set

individually for

different classes of a

manufacturer’s fleet of

passenger

automobiles. [Sec.

101]

Expanded

Considerations

for Maximum

Feasible Fuel

Economy

No provision.

NHTSA is given

broader authority to

increase passenger car

fuel economy without

congressional

approval. [Sec. 3]

NHTSA may set

different CAFE targets

for different

manufacturers, but in

any given year each

manufacturer must

achieve a minimum

average of 92% of the

industry-wide CAFE

target. [Sec. 2]

No provision.

NHTSA may set lower

standards for a model

year if the targets are

not technologically

achievable, would lead

to reductions in

vehicle safety, or are

not cost-effective.

[Sec. 4]

NHTSA may set lower

standards for a model

year if the targets are

not technologically

achievable, would lead

to reductions in

vehicle safety, or are

not cost-effective.

[Sec. 102]

NHTSA may set lower

standards for a model

year if the targets are

not technologically

achievable, would lead

to reductions in

vehicle safety, or are

not cost-effective.

[Sec. 3]

NHTSA is given

broader authority to

increase passenger car

fuel economy without

congressional

approval. [Sec. 502]

Substantially similar to

S. 767/768.

Substantially similar to

S. 767/768.

Substantially similar

to S. 767/768.

NHTSA may establish

multiyear compliance

periods (up to four

years). [Sec. 5]

NHTSA may set

different CAFE targets

for different

manufacturers, but in

any given year each

manufacturer must

achieve a minimum

average of 92% of the

industry-wide target.

[Sec. 4]

Cost-effectiveness is

added to the list of

factors for NHTSA to

consider in

determining maximum

feasible fuel economy.

Secretary may set a

standard that is lower

than the “maximum

feasible” level if there

is “clear and

convincing evidence”

that this level can be

demonstrated to not be

“cost-effective.” [Sec.

503]

CRS-10

S. 183

(Stevens)

S. 357 (Feinstein)

[as introduced]

S. 767 / S. 768

(Obama)

S. 875

(Lugar)

S. 1118

(Dorgan)

H.R. 6 - Senate

Version (Reid)

Cost-effectiveness

would be measured

relative to several

criteria, including

value to consumers,

economic security,

national security,

foreign policy, and the

impact of oil use on

various other national

policy concerns. [Sec.

4]

Attribute-Based

Standards

NHTSA is given

authority to establish

attribute-based

standards. [Sec. 101]

No provision.

Starting in MY2013,

NHTSA is given

authority to establish

attribute-based

standards. [Sec. 4]

No provision.

No provision.

NHTSA is required to

establish attributebased standards. [Sec.

502]

CRS-11

S. 183

(Stevens)

S. 357 (Feinstein)

[as introduced]

S. 767 / S. 768

(Obama)

Credit Trading

Greenhouse gas credits

registered with a

national registry may

be purchased by

manufacturers and

applied to fleet fuel

economy results after

MY2010. However,

credits purchased

through the registry

cannot offset more

than 10% of the fuel

economy standard.

[Sec. 102, 201]

Manufacturers may

trade credits between

fleets and with other

manufacturers. [Sec.

9]

Before MY2013,

manufacturers are

allowed to trade

credits with other

manufacturers for the

same fleet (e.g.

domestic passenger

cars). Starting in

MY2013,

manufacturers may

trade credits with other

manufacturers across

all fleets. However, in

the absence of such

credits, each fleet must

achieve at least 92% of

the overall CAFE

target. [Sec. 5]

No provision.

No provision.

Substantially similar to

S. 357. [Sec. 506]

Carbon Dioxide

Standards

No provision.

No provision.

No provision.

No provision.

No provision.

No provision.

Other Key CAFERelated

Provisions

The Secretary of

Transportation may

not set standards that

impose “marginal

costs that exceed

marginal benefits.”

[Sec. 101]

Starting in MY2014,

automakers must

install devices to

provide real-time and

cumulative fuel

economy data that will

enable drivers to

operate their vehicles

to use fuel more

efficiently. [Sec. 7]

No provision.

Existing incentives

within the CAFE

program for the

production of dualfuel and flexible fuel

vehicles are

eliminated. [Sec.

102(b)]

Broadens authority of

NHTSA to establish

standards for a broader

population of vehicles,

including vehicles

with gross vehicle

weight of 10,00026,000 pounds. [Sec.

2]

NHTSA must develop

a “motor vehicle

safety standard” to

reduce death and

injury by improving

compatibility of large

and small vehicles in

frontal- and sideimpacts. [Sec. 505]

Beginning in

MY2012, existing

incentives within the

The National

Academy of Sciences

(NAS) will conduct a

A “national registry

system” for voluntary

greenhouse gas trading

would be established.

The Secretary of

In order to reduce the

likelihood of death or

S. 875

(Lugar)

Requires NHTSA to

set fuel economy

standards for mediumduty vehicles (vehicles

S. 1118

(Dorgan)

H.R. 6 - Senate

Version (Reid)

CRS-12

Other Key NonCAFE Provisions

S. 183

(Stevens)

S. 357 (Feinstein)

[as introduced]

Transportation,

working with the

Department of

Commerce, will

determine the

equivalency between

fuel economy

improvements and

greenhouse gas

reductions. [Sec. 201]

injury from accidents,

NHTSA is required to

develop vehicle

ratings and standards

to reduce damage by

improving

compatibility of large

and small vehicles in

frontal- and sideimpacts. [Sec. 6]

No provision.

Requires the

Environmental

Protection Agency to

establish a program to

label new vehicles’

expected lifetime

greenhouse gas

emissions. [Sec. 11]

S. 767 / S. 768

(Obama)

S. 875

(Lugar)

S. 1118

(Dorgan)

H.R. 6 - Senate

Version (Reid)

with a gross weight

between 10,000 and

26,000 pounds). [Sec.

102(a)]

CAFE program for the

production of dualfuel and flexible fuel

vehicles are

eliminated. [Sec.3]

study of current and

potential technologies

that might contribute

to meeting CAFE

standards. [Sec. 509]

Requires establishment

of a tire fuel efficiency

consumer information

program.[Sec. 513]

S. 768 also modifies

existing tax credits for

hybrid vehicles and

establishes a

manufacturer tax

credit for advanced

technology vehicles.

This is a broad bill that

also: modifies the

existing hybrid vehicle

purchase tax credit and

establishes a tax credit

for fuel-efficient

vehicles; establishes a

manufacturer’s tax

credit for advanced

technology vehicles;

modifies the existing

mandate for renewable

fuels; promotes

renewable fuel

infrastructure;

mandates the

production of

alternative fuel

vehicles; limits oil

exploration in certain

areas.

From MY2012-2022,

manufacturers must

produce not less than

10% more dual-fueled

vehicles than in the

preceding model year.

[Sec. 3]

Among a number of

additional provisions,

would require

establishment of an

Advanced Battery

Initiative to award

grants and identify

technological needs;

promulgation of

standards for biodiesel

fuel; and establishment

of a credit-trading

program; and sets

requirements for

manufacture of

flexible-fuel vehicles

and raising consumer

awareness about

availability of these

vehicles.

CRS-13

Table 2. Comparison of House CAFE Bills in the 110th Congress

H.R. 656 (Reichert)

H.R. 1133 (Berkley)

H.R. 1500 (DeFazio)

H.R. 1506 (Markey)

H.R. 2927

(Hill)

Bill Title or

Purpose

To require higher standards

of automobile fuel

efficiency with the goal of

reducing the amount of oil

used for fuel by

automobiles in the United

States by 10 percent

beginning in 2017, and for

other purposes.

Freedom through

Renewable Energy

Expansion (FREE) Act

Gasoline Price Stabilization

Act of 2007

Fuel Economy Reform Act

To increase the corporate

average fuel economy

standards for auto-mobiles,

to promote the domestic

development and

production of advanced

technology vehicles, and

for other purposes.

Combined

Passenger

Car/Light Truck

Standards

No provision.

No provision.

No provision.

Passenger car and light

truck standards combined

starting in MY2011. [Sec.

4]

No provision.

Change in

Definition of

“Automobile” or

“Light Truck”

No provision.

No provision.

No provision.

Expands definition of

“automobile” to include all

vehicles of up to 10,000

pounds. [Sec. 3]

No provision.

Mandated

Numeric Increase

in CAFE

Standards

33 mpg by MY2017;

interim standards would be

set by Secretary of

Transportation beginning in

MY2010 to reach the

mandated target. [Sec. 1]

33 mpg by MY2016;

interim standards would be

set by Secretary of

Transportation beginning in

MY2010 to reach the

mandated target. [Sec. 8]

37 mpg by MY2018 and 40

mpg by MY2023; interim

standards would be set by

Secretary of Transportation

beginning in MY2010 to

reach the mandated target.

[Sec. 9]

Mandates “a projected level

of average fuel economy”

of at least 27.5 mpg for

vehicles up to 10,000

pounds beginning in

MY2012, and 35 mpg in

MY2018.

Projected fuel economy for

passenger and nonpassenger automobiles

would be not less than 32

mpg or greater than 35 mpg

in MY2022. [Sec. 1]

CRS-14

H.R. 656 (Reichert)

H.R. 1133 (Berkley)

H.R. 1500 (DeFazio)

H.R. 1506 (Markey)

H.R. 2927

(Hill)

Mandated

Percentage

Increase in CAFE

Standards

No provision.

No provision.

No provision.

Requires that current 27.5

mpg standard for passenger

automobiles be increased

4% annually beginning in

MY2009. [Sec. 4]

No provision.

Regulatory

Flexibility/

Authority

No provision.

No provision.

No provision.

National Highway Traffic

Safety Administration

(NHTSA) may set lower

standards for a

manufacturer for a model

year if the targets are not

technologically achievable,

or are not cost-effective;

and if a lower standard

during MY2012-MY2017

would not result in a failure

to attain 35 mpg in

MY2018. [Sec. 4]

No comparable provision.

Expanded

Considerations for

Maximum Feasible

Fuel Economy

No provision.

No provision.

No provision.

Cost-effectiveness is added

to the list of factors for

NHTSA to consider in

determining maximum

feasible fuel economy.

Cost-effectiveness would

be measured relative to

several criteria, including

value to consumers,

economic security, national

security, foreign policy, and

the impact of oil use on

various other national

policy concerns. [Sec.

4(a)(3)]

No provision.

CRS-15

H.R. 656 (Reichert)

H.R. 1133 (Berkley)

H.R. 1500 (DeFazio)

H.R. 1506 (Markey)

H.R. 2927

(Hill)

Attribute-Based

Standards

Authorizes Secretary to

establish size-based

standards for different

classes of vehicles. [Sec. 1]

No provision.

Authorizes Secretary to

establish size-based

standards for different

classes of vehicles. [Sec. 9]

Extends flexibility to

Secretary to establish

attribute-based standards

(including size) for

different classes of

vehicles, or in the form of a

mathematical function.

[Sec. 4]

Extends flexibility to

Secretary to establish

attribute-based standards

(including size) for

different classes of

vehicles, or in the form of a

mathematical function.

[Sec. 1]

Changes in Test

Procedures

No provision.

No provision.

No provision.

Requires joint report from

the Departments of

Transportation and Energy,

and the Environmental

Protection Agency that, in

part, assesses the accuracy

of CAFE test procedures

used to measure fuel

economy, and to “identify

any additional factors or

methods that” would

contribute to the tests’ more

accurately reflecting in-use

fuel economy. [Sec. 4]

No provision; however,

would require that annual

standards also be expressed

in the equivalent of

average grams per mile of

carbon dioxide emissions.

Credit Trading

Authorizes Secretary to

establish a credit trading

program. [Sec. 2]

No provision.

No provision.

No provision.

Authorizes Secretary to

establish a credit trading

program. [Sec. 1]

CRS-16

H.R. 656 (Reichert)

H.R. 1133 (Berkley)

H.R. 1500 (DeFazio)

H.R. 1506 (Markey)

H.R. 2927

(Hill)

Carbon Dioxide

Standards

No provision.

No provision.

No provision.

No provision.

Requires Secretary to

establish fuel economy

standards both in terms of

miles per gallon and grams

per mile of carbon dioxide.

[Sec. 1]

Other Key CAFERelated Provisions

Preamble states that the

bill’s intention is to de facto

reduce the amount of oil

used in automobiles by

10% beginning in 2017.

Advises Secretary that

interim standards not only

reach mandated 33 mpg by

MY2016, but maximize

retention of jobs in the

sector, and not degrade

safety of automobiles. [Sec.

8]

Advises Secretary that

interim standards not only

reach mandated goals, but

maximize retention of jobs

in the sector, and not

degrade safety of

automobiles. [Sec. 9]

Act is not intended to

“limit, constrain, supersede,

or expand” authorities for

prescribing motor vehicle

safety standards. [Sec. 5]

Establishes fund for

domestic

commercialization and

production of advanced

technology vehicles and

components. Fund will be

financed by civil penalties

collected for noncompliance with fuel

economy standards. [Sec.

1]

Advises Secretary that

interim standards not only

reach mandated 33 mpg by

MY2016, but also must

maximize retention of jobs

in the sector, and not

degrade safety of

automobiles. [Sec. 1]

Requires Executive Branch

agencies to improve the

average fuel economy of

new vehicles in each

vehicle class by 3 mph by

MY2011, and 6 mpg by

MY2014 over a baseline

calculated for all vehicles in

the MY2008 fleet for each

vehicle class. [Sec. 10]

Requires establishment of a

tire fuel efficiency

consumer information

program.

[Sec. 2]

Requires establishment of a

fuel conservation education

program.

[Sec.3]

Extends credit for

production of alternativefueled automobiles. [Sec. 4]

Other Key Non-

No provision.

This is a broad bill that also

This is a broad bill that also

No provision.

No provision.

CRS-17

H.R. 656 (Reichert)

CAFE Provisions

H.R. 1133 (Berkley)

H.R. 1500 (DeFazio)

includes provisions relating

to nuclear energy, offshore

leases, repeal of certain tax

subsidies and extension of

certain tax credits,

renewable portfolio

standard, and other matters.

includes provisions on

several matters such as

petroleum industry

concentration, the Strategic

Petroleum Reserve,

minimum inventory levels.

H.R. 1506 (Markey)

H.R. 2927

(Hill)

Table 3. Comparison of Bills To Establish Automobile Greenhouse Gas Standards in the 110th Congress

S. 309 (Sanders)

S. 485 (Kerry)

Bill Title

Global Warming Pollution Reduction Act

Global Warming Reduction Act of 2007

Greenhouse Gas

(GHG) Emission

Standard

The Environmental Protection Agency (EPA) Administrator is required

to establish regulations starting in MY2016 requiring the average fleet

greenhouse gas emissions be less than 205 grams per mile for passenger

cars and 332 grams per mile for light trucks. [Sec. 707] (This greenhouse

gas standard is roughly equivalent to an MY2016 CAFE standard of 42

mpg for passenger cars and 26 mpg for light trucks.)

The EPA Administrator is required to establish regulations for reducing

greenhouse gas emissions from passenger vehicles at least as stringent as

those adopted by the California Air Resources board on September 2324, 2004. Those regulations cap greenhouse gas emissions at 205 grams

per mile for passenger cars and 332 grams per mile for light trucks by

2016. [Sec. 704] (This is roughly equivalent to an MY2016 CAFE

standard of 42 mpg for passenger cars and 26 mpg for light trucks.)

Other Key CAFERelated Provisions

Requires greenhouse gas emissions standards for medium- and heavyduty trucks.

No provision.

Other Key NonCAFE Provisions

Caps greenhouse gas emissions on an economy-wide basis beginning in

2010. Emissions are capped at 20% of their 1990 levels in the year

2050. The EPA has the discretion to employ a market-based allowance

trading program or any combination of cost-effective emission reduction

strategies. The bill also includes mandatory greenhouse gas emission

standards for new powerplants, along with a new energy efficiency

performance standard. The bill would establish a renewable portfolio

Caps greenhouse gas emissions on an economy-wide basis beginning in

2010. Emissions are capped at 38% of their 1990 levels in 2050. The

allowance trading system includes an allocation scheme that requires an

unspecified percentage of allowances to be auctioned. The bill also

includes a new energy efficiency performance standard. The bill would

establish a renewable portfolio standard (RPS), increase biofuel

mandates under the Renewable Fuels Standard, and mandate new

CRS-18

S. 309 (Sanders)

standard (RPS) and a new low-carbon generation requirement and

trading program.

S. 485 (Kerry)

infrastructure for biofuels. Finally, the bill expands and extends existing

tax incentives for alternative fuels and advanced technology vehicles,

and establishes a manufacturer tax credit for advanced technology

vehicle investment.