Corporate Average Fuel Economy

Corporate Average Fuel Economy, commonly called CAFE, is a result of the Energy Policy Conservation Act, passed by Congress in 1975 that added Title V, “Improving Automotive Efficiency” to the Motor Vehicle Information and Cost Savings Act and established fuel economy standards for passenger cars and light trucks.

The near-term goal was to double new car fuel economy by model year 1985. The Energy Independence and Security Act of 2007 raised the 1985 target of 27.5mpg for cars and 22.2mpg for light trucks to a 2020 target of 35mpg for both cars and light trucks.