Vehicle Fuel Efficiency Standards Correction Notice
Summary
This document corrects technical errors in the final rule that appeared in the Federal Register on June 24, 2024, entitled "Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027-2032 and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030-2035." That document finalized new Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks to be manufactured in model years (MYs) 2027-2031, and new fuel efficiency standards for heavy-duty pickup trucks and vans (HDPUVs) to be manufactured in MYs 2030-2035.
Compliance Requirements
- #1
Minimum Fuel Economy Standards for Domestically Manufactured Passenger Automobiles, MYs 2011-2031: 2011: 27.8 mpg, 2012: 30.7 mpg, 2013: 31.4 mpg, 2014: 32.1 mpg, 2015: 33.3 mpg, 2016: 34.7 mpg, 2017: 36.7 mpg, 2018: 38.0 mpg, 2019: 39.4 mpg, 2020: 40.9 mpg, 2021: 39.9 mpg, 2022: 40.6 mpg, 2023: 41.1 mpg, 2024: 44.3 mpg, 2025: 48.1 mpg, 2026: 53.5 mpg, 2027: 54.2 mpg, 2028: 55.2 mpg, 2029: 56.4 mpg, 2030: 57.5 mpg, 2031: 58.7 mpg; Minimum Domestic Passenger Car Standard with Offset: 2027: 54.2 mpg, 2028: 55.2 mpg, 2029: 56.4 mpg, 2030: 57.5 mpg, 2031: 58.7 mpg, 2032: 59.9 mpg; Final Minimum Domestic Passenger Car Standard: 2027: 54.2 mpg, 2028: 55.2 mpg, 2029: 56.4 mpg, 2030: 57.5 mpg, 2031: 58.7 mpg, 2032: 59.9 mpg; Prohibition on considering the fuel economy of battery electric vehicles applies only when NHTSA is making decisions about whether the CAFE standards are maximum feasible under 32902(f)
Deadline: Model year specific (annually from 2011-2031)
Market Impacts
Corrected Corporate Average Fuel Economy (CAFE) standards requiring minimum fuel efficiency of 54.2 mpg in 2027 increasing to 59.9 mpg in 2032 for passenger cars, with similar progressive increases for other vehicle categories; Corrected Minimum Domestic Passenger Car Standard requiring progressive fuel efficiency increases from 27.8 mpg in 2011 to 58.7 mpg in 2031; Prohibition on considering fuel economy of battery electric vehicles when determining maximum feasible CAFE standards under 49 USC 32902(f)
Validated Company Impacts
FORD MOTOR CO
Ford Motor Company is a major domestic automobile manufacturer that produces passenger cars, light trucks, and heavy-duty pickup trucks and vans - all vehicle categories explicitly covered by this CAFE rule. As one of the largest US automakers, Ford would be directly subject to the progressive fuel efficiency standards and compliance requirements for model years 2027-2032. The CAFE fuel efficiency standards specifically target domestic automobile manufacturers and their production of passenger cars, light trucks, and heavy-duty vehicles. This company operates in the financial services sector with no manufacturing operations, vehicle production, or automotive industry exposure, making the rule completely irrelevant to its business activities and risk profile.
General Motors Co
General Motors is a major domestic automobile manufacturer that produces passenger cars, light trucks, and heavy-duty pickup trucks and vans - all vehicle categories explicitly covered by this CAFE rule. As one of the largest US-based automotive manufacturers, GM's core business operations directly align with the fuel efficiency standards for model years 2027-2032, making them significantly affected by these regulatory requirements. The CAFE standards primarily address environmental compliance and manufacturing efficiency risks, which are not reflected in the company's disclosed risk profile that focuses on financial, operational, market, and cybersecurity risks. There is minimal overlap as the rule's fuel efficiency requirements could indirectly affect operational costs, but this is not explicitly identified as a company risk.
Lucid Group, Inc.
Lucid Group operates as a domestic manufacturer of electric passenger vehicles, directly falling under the CAFE standards jurisdiction for passenger car manufacturers. The company's production of battery electric vehicles aligns with the rule's focus on fuel efficiency standards and the specific provisions regarding electric vehicle considerations in CAFE determinations. The rule focuses on fuel efficiency standards for vehicle manufacturers, but the company's disclosed risk factors show no direct alignment with automotive manufacturing or fuel economy compliance. The only potential indirect connection is through 'Regulatory Credits Revenue Dependency,' but this appears unrelated to CAFE standards as it lacks specificity about vehicle manufacturing or environmental regulations.
Rivian Automotive, Inc. / DE
Rivian operates as a domestic manufacturer of electric vehicles, including passenger vehicles and commercial vans, which directly fall under the CAFE standards' jurisdiction for model years 2027-2032. The company's production of battery electric vehicles is specifically addressed by the rule's provisions regarding fuel economy considerations, indicating strong operational alignment. The CAFE standards rule focuses specifically on fuel efficiency requirements for vehicle manufacturers, which does not align with any of the company's disclosed risk factors. The company's regulatory compliance risks appear to relate to supply chain resilience and general operational challenges rather than automotive manufacturing or environmental regulations.
Tesla, Inc.
Tesla operates as a domestic manufacturer of fully electric passenger vehicles and light trucks, which directly falls under the CAFE standards jurisdiction for model years 2027-2032. The company's core automotive business of manufacturing electric vehicles in the US makes it subject to these fuel efficiency requirements, though its all-electric fleet inherently exceeds the minimum standards. The CAFE standards rule primarily impacts fuel efficiency compliance costs and manufacturing requirements, which are not explicitly mentioned in the company's disclosed risk factors. While the company faces general regulatory compliance risks (8 identified), none specifically address fuel economy standards or environmental regulations, resulting in minimal alignment.