Manufacturer's Policies Concerning Average Fuel Economy Standards

PDFTech ReportHS-803-720Automobile industryAutomobilesFuel consumptionImplementationLawsPolicyStandardsUnited StatesUnited States. National Highway Traffic Safety AdministrationWhorf, Robert P.John A. Volpe National Transportation Systems Center, (U.S.)United States. National Highway Traffic Safety AdministrationNTL-LAWS AND REGULATIONS-LAWS AND REGULATIONSNTL-LAWS AND REGULATIONS-Federal LawsNTL-LAWS AND REGULATIONS-U.S. Code of Federal RegulationsNTL-HIGHWAY/ROAD TRANSPORTATION-HIGHWAY/ROAD TRANSPORTATIONVolpe National Transportation Systems Center, Technical Reference CenterThe National Highway Traffic Safety Administration (NHTSA) has been given the responsibility for implementing the average fuel economy standards for passenger automobiles mandated by the Energy Policy and Conservation Act (P.L. 94-163). The standards, in miles per gallon, for 1978, 1979 and 1980 are stipulated in the legislation. Fuel economy standards for 1981 and 1984 are to be established by rulemaking. The standard for 1985 is set at 27.5 mpg; however, the Secretary may set the standard for 1985 as low as 26 mpg without further action by Congress. The form of regulation, i.e., the imposition of standards on the basis of each manufacturer's total production for a given model year, as well as the criteria to be applied by NHTSA in setting the 1981 through 1985 standards, require that very careful attention be given to understanding both the probable responses of each manufacturer and the economic and other consequences of such responses. The AFER (Average Fuel Economy Regulatory) Program at TSC is intended to assist NHTSA in the analysis of options for setting average fuel economy standards and applying the criteria of Title V of the Motor Vehicle Information and Cost Savings Act (Title III of EPCA) for an evaluation of these options. /Author