Corporate Average Fuel Economy

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Corporate Average Fuel Economy (CAFE) is the required average fuel economy for a vehicle manufacturer's passenger cars and light trucks with gross vehicle weight rating (GVWR) of at most 8,500 lbs each year. CAFE values from determined fuel economy estimates are combined with results from city and highway tests. EPA administers the testing program which generates the fuel economy data and determines the procedures for calculating the fuel economy values for CAFE. The National Highway Traffic and Safety Administration (NHTSA), which is part of DOT, is responsible for establishing and amending the CAFE standards for trucks. CAFE standards are set by Congress. Manufacturers’ annual CAFE results are reported by EPA to NHTSA, who then determines if penalties are required. [1]
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Corporate Average Fuel Economy (CAFE) is the required average fuel economy for a vehicle manufacturer's passenger cars and light trucks with gross vehicle weight rating (GVWR) of at most 8,500 lbs each year. CAFE values from determined fuel economy estimates are combined with results from city and highway tests administered by the United States Environmental Protection Agency (EPA). EPA also determine the procedures for calculating the fuel economy values for CAFE. The National Highway Traffic and Safety Administration (NHTSA), which is part of DOT, is responsible for establishing and amending the CAFE standards for trucks. Manufacturers’ annual CAFE results are reported by EPA to NHTSA, who then determines if penalties are required. [1]
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=== Calculation of CAFE Estimates ===
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Vehicles are tested in two different situations: city test, where cars are driven for 11 miles at 20 mph, and highway test where cars are driven for 10 miles at 48 mph. The emissions results are adjusted to account for conditions that occur in real life, such as extreme temperature, aggressive driving, power-hungry accessories usage, etc. City results are adjusted down 10% and highway results are adjusted down 20% accordingly. Carbon compounds expelled in the exhaust are then measured and formulated into a carbon equation, which are then used to calculate fuel economy estimates from adjusted emissions. More information on calculation of CAFE estimates can be found on [http://www.epa.gov/fueleconomy/420f04053.htm#cafe EPA]'s website.
=== CAFE Policy on Trucks ===
=== CAFE Policy on Trucks ===

Revision as of 19:41, 2 December 2006

Corporate Average Fuel Economy (CAFE) is the required average fuel economy for a vehicle manufacturer's passenger cars and light trucks with gross vehicle weight rating (GVWR) of at most 8,500 lbs each year. CAFE values from determined fuel economy estimates are combined with results from city and highway tests administered by the United States Environmental Protection Agency (EPA). EPA also determine the procedures for calculating the fuel economy values for CAFE. The National Highway Traffic and Safety Administration (NHTSA), which is part of DOT, is responsible for establishing and amending the CAFE standards for trucks. Manufacturers’ annual CAFE results are reported by EPA to NHTSA, who then determines if penalties are required. [1]

Contents

Calculation of CAFE Estimates

Vehicles are tested in two different situations: city test, where cars are driven for 11 miles at 20 mph, and highway test where cars are driven for 10 miles at 48 mph. The emissions results are adjusted to account for conditions that occur in real life, such as extreme temperature, aggressive driving, power-hungry accessories usage, etc. City results are adjusted down 10% and highway results are adjusted down 20% accordingly. Carbon compounds expelled in the exhaust are then measured and formulated into a carbon equation, which are then used to calculate fuel economy estimates from adjusted emissions. More information on calculation of CAFE estimates can be found on EPA's website.

CAFE Policy on Trucks

CAFE policy on trucks (has 4-wheel drive or is more than 6,000 lbs. GVWR)

  • Current (2006) CAFE Standard on trucks = 21.6 mpg
  • Past 2007 CAFE Standard proposed March 2003 on trucks = 22.6 mpg
  • New average proposed March 2006 = 24.1 mpg
  • Price = $55 per truck per mpg (same as small-medium sized vehicles)
  • Light trucks that exceed 8,500 lbs gross vehicle weight rating (GVWR) do not have to comply with CAFE standards (i.e. pickup trucks, sport utility vehicles and large vans)

CAFE Incentive for Alternative Fuel Vehicles

CAFE incentive policy

  • Alt fuel vehicle: FE = FEorig/.15
  • Duel fuel vehicle: FE = 1/((.5/FEconv_orig)+(.5/FEalt_orig))
  • Natural gas: FE = FEorig(100/.823)(1/.15)
  • Energy: 100 ft^3 natural gas = .823 gal gasoline
  • Volume: 1 gal natural gas = .15 gal fuel

CAFE Credits

 * If fuel economy of fleet exceeds established standards – get credits
 * Credits can be applied to any 3 consecutive model years immediately prior to or subsequent to model year in which credits are earned.
 * carry back credits – credits applied to prior years
    * If there are not enough credits available, then the manufacturer can either pay the fine, or submit a carry back plan to the agency
    * (FECAFE - FEMANUF) * 10.0  * cars = total credits needed
 * carry forward credits – credits applied to subsequent years
 * If credits not used within three years, they are forfeited
 * Credits cannot be passed between manufacturers or fleets (domestic  light trucks)

Calculating CAFE Estimates

 * Test vehicles in two difference situations: city test (11 miles at 20 mph) and highway test (10 miles at 48 mph)
 * Adjust emissions results to account for conditions that occur in real life (extreme temperature, aggressive driving, power-hungry accessories usage, etc.)
     * City results – adjust down 10%
     * Highway results – adjust down 20%
 * Carbon equation: measure the carbon compounds expelled in the exhaust and calculate fuel economy.
 * Calculate estimates from adjusted emissions using carbon balance equation.
      * FEave = (total sales / [(sales1/FE1)+ (sales2/FE2) + ...+ (salesn/FEn)]
      * FEcomb = 1 / (( .55 / city FE) + (.45 / hwy FE))

Calculating CAFE Penalties

Small-Large cars

    Conventional
         
    Alternative Fuel (any type)
         
    Dual Fuel (any type)
         
    Natural Gas
         

Light Trucks

    Conventional
         

Adding on Credits

External Links

NHSTA CAFE Overview

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