Transportation Department Proposes New Fuel Economy Standards
August 31, 2005
The U.S. Department of Transportation (DOT) proposed new fuel economy standards for light trucks on August 23rd. The proposed new Corporate Average Fuel Economy standards would apply to most minivans, pickups, and sport utility vehicles (SUVs), and the DOT expects them to save 10 billion gallons of gasoline in the years to come. The standard sets six different fuel economy standards based on vehicle size. It allows manufacturers to choose between existing standards and the new standards from 2008 to 2010, after which the new standards will be fully implemented. The National Highway Traffic Safety Administration (NHTSA) will take comments on the proposal for 90 days, with plans to issue the final rule by April 2006. See the DOT press release and the NHTSA's "Light Truck Fuel Economy Standard Rulemaking."