Car Corporate Average Fuel Economy (CAFE) Standards

Corporate average fuel economy (cafe) standards are gas mileage standards applied to automobile manufacturers. The standards were developed as part of the Energy Policy and Conservation Act passed by Congress in 1975. The act was designed to conserve energy following the 1973–74 Arab oil embargo, when restricted oil imports led to long lines at gas stations and contributed to economic recession. The measure is calculated by averaging the miles per gallon (mpg) of each vehicle manufactured by a given firm for sale in the United States in a given model year. Since the standard is based on the average of a firm's entire fleet of vehicles, some models may exceed the standard if others fall below it. There are separate standards for passenger cars and ...