Corporate Average Fuel Economy (CAFE) Act

The Corporate Average Fuel Economy (CAFE) Act, enacted in 1975, establishes standards for vehicle manufacturers to improve the average fuel efficiency of their fleets. Instead of every vehicle needing to meet a specific fuel economy, companies must ensure that the average of all their cars and trucks sold meets certain mileage targets. This encourages automakers to produce more fuel-efficient vehicles, reducing fuel consumption and emissions, and ultimately helping consumers save money and lessen environmental impact. The standards vary depending on vehicle type and are periodically updated to reflect technological advancements and policy goals.