U
                   EPAfs Fuel Economy Programs
           This fact sheet describes the U.S. Environmental Protection
           Agency's (EPA) Fuel Economy Program. EPA is responsible
      for providing the fuel economy data that is used by the U.S.
      Department of Energy (DOE) to publish the annual Fuel
      Economy Guide, by the U.S. Department of Transportation
      (DOT) to administer the Corporate Average Fuel Economy
      (CAFE)  program, and by the Internal Revenue Service (IRS) to
      collect Gas Guzzler taxes.
                   Introduction
                   Fuel economy, or gas mileage, continues to be a major area of public and
                   policy interest for several reasons. Passenger vehicles account for ap-
                   proximately 40 percent of all U.S. oil consumption, so increasing energy
                   efficiency helps reduce our dependence on imported oil and enhances the
                   nation's energy security. Likewise, it helps conserve our fossil resources for
                   future generations. Passenger vehicles also contribute about 20 percent of
                   all U.S. carbon dioxide emissions, so increasing fuel efficiency helps reduce
                   greenhouse gas  emissions. Finally, the more miles a car gets per gallon of
                   gasoline, the more money the owner saves on fuel costs. Given the impor-
                   tance of fuel economy, the federal government administers three programs
                   to provide information to consumers about fuel economy and to encourage
                   the production of fuel efficient vehicles.
SEFtt
United States
Environmental Protection
Agency
Office of Transportations and Air Quality
                     EPA420-F-06-074
                      December 2006

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    Fuel Economy Labels and Fuel  Economy Guide
    Once a year, EPA and DOE publish the Fuel Economy Guide listing the fuel economy esti-
    mates (expressed in miles per gallon) of new passenger vehicles. The Fuel Economy Guide
    is published and distributed by DOE based on EPA's data. The fuel economy estimates
    listed in the guide are based on laboratory testing performed by the auto manufacturers
    and EPA.
    What Vehicles Are Tested?
    Not every vehicle is tested for fuel economy. Instead, manufacturers are required to split
    each model into smaller groups, based upon the various options available that can impact
    fuel economy (such as vehicle weight, transmission type and engine size). A vehicle from
    each of these groups with the highest projected sales must be tested. Also, passenger
    cars and light trucks with a gross vehicle weight rating (GVWR) greater than 8,500 pounds
    are exempt from fuel economy requirements, and are not tested for fuel economy (how-
    ever, they are still subject to Federal emission requirements.)

    Manufacturers test all the vehicles at their laboratories. EPA confirms about 10-15 percent
    of the vehicles at its National Vehicles and Fuel Emission Laboratory in Ann Arbor, Michi-
    gan.
    How are Vehicles Tested?
    Vehicles are driven over identical driving patterns by professional drivers in controlled labo-
    ratory conditions on a dynamometer, which is like a treadmill for cars. The conditions that
    occur during driving, such as wind drag and inertia are accounted for on the dynamometer.
    There are two types of tests that are conducted: city  and highway tests.

    The city test is approximately 11  miles long and simulates a stop and go trip with an aver-
    age speed of about 20 miles per hour (mph).The trip  lasts 31 minutes and has 23 stops.
    About 18 percent of the time is spent idling (as in waiting for traffic lights). A short freeway
    driving segment is included in the test. The engine is  initially started after being parked
    overnight.

    The highway test  simulates a 10  mile trip with  an average speed of 48 mph. The vehicle is
    started "hot" and there is very little idling and no stops.
    How Are the Label Estimates Calculated?
    Fuel economy estimates are calculated from the emissions generated during the tests

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    using a carbon balance equation. We know how much carbon is in the fuel, so by precisely
    measuring the carbon compounds expelled in the exhaust we can calculate the fuel econo-
    my.

    After the vehicles have been tested, the results are adjusted downward to account for con-
    ditions that occur on the road that can affect fuel economy which don't occur during labora-
    tory testing, such as cold temperature, aggressive driving, excessive use of power-hungry
    accessories, among others. The city is adjusted downward by 10 percent, and the highway
    by 22 percent.
    The equation for calculating the city or highway average fuel economy, given in miles per
    gallon (mpg), is:

    FEave = (total sales /[(sales1/FE1)+ (sales2/FE2) + ...+ (salesn/FEn)]

    The calculation for combined fuel economy weights the city at 55 percent and the highway
    at 45 percent using the following equation:

    FEcomb = 1 / (( .55 / city FE) + (.45 / hwy FE))
    What Information Is In The Fuel Economy Guide and on The
    Fuel Economy Label?
    The fuel economy city and highway estimates are printed in the Fuel Economy Guide and
    posted on the window sticker labels of all new cars and light trucks. Also included on the
    labels and in the Guide are the projected annual fuel costs as determined from the com-
    bined city and highway fuel economy, assuming  15,000 miles traveled per year and using
    estimated fuel costs (provided by the  Department of Energy) from the following table (for
    2007 model year vehicles):

          Regular Unleaded Gasoline      $2.65 per gallon
          Premium Unleaded Gasoline     $2.85 per gallon
          Diesel Fuel                    $2.65 per gallon
          CNG (Gasoline equivalent)       $1.45 per gallon equivalent
          E85 Ethanol Fuel               $2.20 per gallon
          LPG (Propane)                 $1.70 per gallon
          Hydrogen                     $5.85 per kilogram
          Electricity                     $0.10, 0.15 per kilowatt-hour

    The fuel prices were determined in advance to allow time for printing labels and the Fuel
    Economy Guide. For more recent fuel cost estimates using current fuel  prices, visit www.

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    fueleconomy.gov.The Fuel Economy Guide is published and distributed to dealerships
    across the United States. New car dealers are required to have copies of the Guide avail-
    able to consumers. The Guide is also available online at www.fueleconomy.gov.
    Corporate Average Fuel Economy (CAFE)
    Corporate Average Fuel Economy (CAFE) is the required average fuel economy for a ve-
    hicle manufacturer's entire fleet of passenger cars and light trucks manufactured for sale in
    the United States for each model year. There are separate average fuel economy standards
    for passenger cars and light trucks. Light trucks include those with a gross vehicle weight
    rating (GVWR) of 8,500 pounds or less. CAFE values are obtained using the same test
    data generated by the fuel economy tests used to determine the fuel economy estimates
    for the Guide and labels, but the test  results are not adjusted to account for real-world
    conditions. Instead, the results from the city and highway tests are combined. EPA ad-
    ministers the testing  program which generates the fuel economy data and determines the
    procedures for calculating the fuel economy values for CAFE. The National High way Traffic
    and Safety Administration (NHTSA), which is part of DOT, is responsible for establishing
    and amending the CAFE standards for light trucks. Congress sets the CAFE standards for
    cars. EPA reports the CAFE results for each  manufacturer to NHTSA annually, and NHTSA
    determines if the manufacturers comply with the CAFE standards and assesses penalties
    as required. More information about CAFE can be found on NHTSAs web  site at http://
    Www.nhtsa.dot.gov/portal/site/nhtsa/menuitem.d0b5a45b55bfbe582f57529cdba046a0/.
    Green Vehicle Guide
    Every year since 2000, EPA publishes emissions information for the new model year cars
    and light trucks on its Green Vehicle Guide Web site at www.epa.gov/greenvehicles. This
    user-friendly site is designed to help consumers identify the cleanest, most efficient ve-
    hicle that meets their needs. It provides consumers with the opportunity to compare the
    relative emissions performance of vehicles by means of the 0-10 emissions rating as-
    signed to each vehicle. Vehicles rated higher than others are designed to emit fewer pol-
    lutants such as carbon monoxide, nitrogen  oxides, hydrocarbons and particulate matter.
    Vehicles can be viewed individually or by class,  such as SUVs, sedans, or pickups.

    The emissions ratings are based on the EPA emission standards the vehicle was certified
    to meet. Because manufacturers can choose from a complex set of emission standards, it
    is not always easy to understand them. The Green Vehicle Guide "demystifies" these stan-
    dards, and allows consumers to  see that they may have a choice to buy a cleaner, more
    efficient vehicle, regardless of the size, type or  style they are  interested in.

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    The Green Vehicle Guide also identifies the cleanest, most fuel efficient vehicles with a
    " S rm art Ways rm" logo. More information about SmartWay vehicles is found at http://www.
    epa.gov/greenvehicles/about.htm.
    Gas Guzzler Tax
    The Gas GuzzlerTax is imposed on manufacturers of new model year cars (not minivans,
    sport utility vehicles or pick-up trucks) that fail to meet the minimum fuel economy level of
    22.5 mpg.The tax is intended to discourage the production and purchase of fuel inefficient
    vehicles. The fuel economy figures used to determine the tax are based on combined city
    and highway fuel economy that is unadjusted for real-world conditions, and thus is differ-
    ent from the fuel economy estimates provided in the Fuel Economy Guide. The tax is col-
    lected by the Internal Revenue Service and normally paid by the manufacturer or importer
    after production has ended for the model year and is based on the total number of gas
    guzzler vehicles which were introduced into commerce in the United States. The amount
    of the tax paid is displayed on the vehicle's fuel  economy label (the window sticker on new
    cars).  Information on Gas GuzzlerTax: www.epa.gov/otaq/cert/mpg/guzzler/index.htm.
    For More Information
    You can access additional information about these programs at the following web sites:

          •     Information on EPA's Fuel Economy Program, including regulations, test data,
                and consumer tips:
                www.epa.gov/fueleconomy

          •     Information on vehicle fuel economy, advanced
                technoogy, and possible tax incentives, including a down loadable version of
                the Fuel Economy Guide:
                www.fueleconomy.gov

          •     Information on CAFE, including CAFE standards, NHT SAs annual report
                summarizing the fuel economy performance of the current fleet, rulemaking
                activities,  and fines collected:
                www.nhtsa.dot.gov/portal/site/nhtsa/menuitem.
                dOb5a45b55bfbe582f57529cdba046aO/

          •     The IRS's  Gas GuzzlerTax form (IRS Form 6197):
                www.irs.gov/pub/irs-pdf/f6197.pdf

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