|
Fuel Economy Standards for New Light Trucks |
|
In March 2006, NHTSA finalized CAFE standards requiring higher fuel economy performance for light-duty trucks in MY 2008 through 2011 [12]. Unlike the proposed CAFE standards discussed in AEO2006 [13], which would have established minimum fuel economy requirements by six footprint size classes, the final reformed CAFE standards specify a continuous mathematical function that determines minimum fuel economy requirements by vehicle footprint, defined as the wheelbase (the distance from the front axle to the center of the rear axle) times the average track width (the distance between the center lines of the tires) of the vehicle in square feet. As shown in Figure 9, the new fuel economy standards vary by model year (MY) and by vehicle footprint. By eliminating the categories laid out in the proposed rule, the final rule removes the opportunity for manufacturers to reduce fuel economy requirements by altering vehicle sizes just enough to reach lower target levels. Instead, under a continuous function approach, each footprint value has an assigned fuel economy target, and small changes in vehicle footprint are not rewarded with large decreases in target values. In addition to reforming the structure of the light truck CAFE program, NHTSA has also increased the gross vehicle weight rating (GVWR) of light trucks covered under CAFE. NHTSA defines light-duty trucks as trucks with a GVWR of 10,000 pounds or less, including pickups, vans, truck-based station wagons, and sport utility vehicles (SUVs). Current CAFE standards apply to light-duty trucks that have a GVWR of 8,500 pounds or less. Starting in MY 2011, light truck CAFE standards will also apply to medium-duty passenger vehicles (MDPVs), which are defined as complete heavy-duty vehicles less than 10,000 pounds GVWR that are designed primarily for transportation of passengers. The definition of an MDPV does not include vehicles sold as incomplete trucks (i.e., a truck cab on chassis); vehicles that have a seating capacity of more than 12 persons; vehicles designed for more than 9 persons in seating rearward of the driver’s seat; or vehicles equipped with an open cargo area (e.g., a pickup truck box or bed) of 6 feet or more in interior length. Hence, the definition of an MDPV essentially includes SUVs, short-bed pickup trucks, and passenger vans that are within the specified weight and weight-rated ranges. This implies that, starting in MY 2011, all SUVs greater than 8,500 GVWR that are currently excluded from CAFE consideration and all passenger vans less than 10,000 pounds GVWR will be included in determining a manufacturer’s light truck CAFE compliance. To provide manufacturers adequate time to adjust their product plans to the new provision, NHTSA is making the new definition effective beginning in MY 2011. As a result, the change will not have an immediate impact on MY 2008-2010 vehicles. In addition, NHTSA is permitting manufacturers to rely on either the old or the revised definition of light trucks until MY 2011. NHTSA has also amended the “flat floor provision” to include only vehicles that have at least three rows of seats, of which the second and third rows can be detached or folded to create a flat cargo surface. Manufacturers currently offering minivans with folding seats will be able to take advantage of the new definition immediately. The new CAFE standards continue to exclude most medium- and heavy-duty pickups and most medium- and heavy-duty cargo vans that are used primarily for agricultural and commercial purposes. The change in the definition of a light truck can also have an impact on the product mix that a manufacturer will offer, because some light trucks under the current definition could be categorized as cars under the new definition, with a higher CAFE requirement. The reformed CAFE standards impose a unique fuel economy standard on each manufacturer, based on the product mix sold in a given MY. For MY 2008 through 2010, manufacturers have the option of complying with either the new reformed CAFE standard or an unreformed CAFE standard. The unreformed CAFE standard requires manufacturers to meet an average light truck fleet standard of 22.5 miles per gallon in MY 2008, 23.1 miles per gallon in MY 2009, and 23.5 miles per gallon in MY 2010. All light truck manufacturers must adhere to the new reformed standards for MY 2011 and subsequent years. Each manufacturer is subject to an identical fuel economy target for light truck models with the same footprint. Moreover, the same formula is applied to determine each manufacturer’s required CAFE level, using the fuel economy targets for different footprints, the targets specific for each model, and the production levels of each model. Individual manufacturers face different required CAFE levels only to the extent that they produce different volumes of vehicles by footprint. To determine compliance with the reformed CAFE standard, each manufacturer’s production-weighted average fuel economy will be calculated and compared to the calculated reformed CAFE. If the weighted average fuel economy of all the manufacturer’s models is at least equal to the manufacturer’s calculated reformed CAFE, then the manufacturer will be in compliance with the reformed CAFE standard. If its actual fleet-wide average fuel economy is greater than its required CAFE level, the manufacturer will earn credits equal to the difference, which can be applied to any of the three preceding or subsequent model years. With this allowance, manufacturers will not be penalized for occasionally failing to meet the targets (due to market conditions, for example) but only for persistent failure to meet them. If the average fuel economy of a manufacturer’s annual car or truck production falls below the defined standard, the manufacturer will be required to pay a penalty proportional to its total production for the U.S. domestic market. The new CAFE standards are captured in the AEO2007 projections. For MY 2008 through 2011, manufacturers are assumed to adhere to the increases in unreformed light truck standards. For MY 2011, the AEO2007 applies a fleet-wide standard of 24 miles per gallon, based loosely on the change between 2010 and 2011 in the proposed footprint-based standards. Because no further changes in fuel economy standards beyond 2011 are assumed, the projected increase in light truck fuel economy after 2011 reflects projected technology adoption resulting from other market forces.
12. U.S. Department of Transportation, National Highway Traffic Safety Administration, “Average Fuel Economy Standards for Light Trucks Model Years 2008-2011,” 49 CFR Parts 523, 533 and 537 (Docket No. 2006-24306, RIN 2127-AJ61), web site www. nhtsa.dot.gov/staticfiles/DOT/NHTSA/Rulemaking/ Rules/Associated%20Files/2006FinalRule.pdf. 13. Energy Information Administration, “Proposed Revisions to Light Truck Fuel Economy Standards,” Annual Energy Outlook 2006, DOE/EIA-0383(2006) (Washington, DC, February 2006), pp. 23-24, web site www.eia.doe.gov/oiaf/archive/aeo06.
Contact: John Maples |
