This part establishes average fuel economy standards pursuant to 49 U.S.C. 32902 for passenger automobiles.

The purpose of this part is to increase the fuel economy of passenger automobiles by establishing minimum levels of average fuel economy for those vehicles.

This part applies to manufacturers of passenger automobiles.

(a) Statutory terms. (1) The terms average fuel economy, manufacture, manufacturer, and model year are used as defined in 49 U.S.C. 32901.

(2) The terms automobile and passenger automobile are used as defined in 49 U.S.C. 32901 and in accordance with the determination in part 523 of this chapter.

(b) Other terms. As used in this part, unless otherwise required by the context—

(1) The term domestically manufactured passenger automobile means the vehicle is deemed to be manufactured domestically under 49 U.S.C. 32904(b)(3) and 40 CFR 600.511-08.

(2) [Reserved]

(a) Except as provided in paragraph (e) of this section, each manufacturer of passenger automobiles shall comply with the fleet average fuel economy standards in table 1 to this paragraph (a), expressed in miles per gallon, in the model year specified as applicable:

(b) Except as provided in paragraph (e) of this section, for model year 2011, a manufacturer's passenger automobile fleet shall comply with the fleet average fuel economy level calculated for that model year according to figure 1 and the appropriate values in table 2 to this paragraph (b).

Figure 1 to Paragraph (b)

(c) Except as provided in paragraph (e) of this section, for model years 2012-2031, a manufacturer's passenger automobile fleet shall comply with the fleet average fuel economy level calculated for that model year according to this figure 2 and the appropriate values in this table 3 to this paragraph (c).

Subscript i is a designation of multiple groups of automobiles, where each group's designation, i.e., i = 1, 2, 3, etc., represents automobiles that share a unique model type and footprint within the applicable fleet, either domestic passenger automobiles or import passenger automobiles;

Productioni is the number of passenger automobiles produced for sale in the United States within each ith designation, i.e., which share the same model type and footprint;

TARGETi is the fuel economy target in miles per gallon (mpg) applicable to the footprint of passenger automobiles within each ith designation, i.e., which share the same model type and footprint, calculated according to figure 3 to this paragraph (c) and rounded to the nearest hundredth of a mpg, i.e., 35.455 = 35.46 mpg, and the summations in the numerator and denominator are both performed over all models in the fleet in question.

(d) In addition to the requirements of paragraphs (b) and (c) of this section, each manufacturer, other than manufacturers subject to standards in paragraph (e) of this section, shall also meet the minimum fleet standard for domestically manufactured passenger automobiles expressed in table 4 to this paragraph (d):

(e) The following manufacturers shall comply with the standards indicated in paragraphs (e)(1) through (15) of this section for the specified model years:

(1) Avanti Motor Corporation.

(2) Rolls-Royce Motors, Inc.

(3) Checker Motors Corporation.

(4) Aston Martin Lagonda Limited.

(5) Excalibur Automobile Corporation.

(6) Lotus Cars Ltd.

(7) Officine Alfieri Maserati, S.p.A.

(8) Lamborghini of North America.

(9) LondonCoach Co., Inc.

(10) Automobili Lamborghini S.p.A./Vector Aeromotive Corporation.

(11) Dutcher Motors, Inc.

(12) MedNet, Inc.

(13) Vector Aeromotive Corporation.

(14) Qvale Automotive Group Srl.

(15) Spyker Automobielen B.V.

(16) Ferrari.

(17) Koenigsegg.

(18) McLaren.

(19) Mobility Ventures.

(20) Pagani.

(a) The fleet average fuel economy performance of all passenger automobiles that are manufactured by a manufacturer in a model year shall be determined in accordance with procedures established by the Administrator of the Environmental Protection Agency (EPA) under 49 U.S.C. 32904 and set forth in 40 CFR part 600.

(b) For model years 2017 through 2031, a manufacturer is eligible to increase the fuel economy performance of passenger cars in accordance with procedures established by the Environmental Protection Agency (EPA) set forth in 40 CFR part 600, subpart F, including adjustments to fuel economy for fuel consumption improvements related to air conditioning (AC) efficiency and off-cycle technologies. Starting in model year 2027, fuel economy increases for fuel consumption improvement values under 40 CFR 86.1868-12 and 40 CFR 86.1869-12 only apply for vehicles propelled by internal combustion engines. Manufacturers must provide reporting on these technologies as specified in § 537.7 of this chapter by the required deadlines.

(1) Efficient AC technologies. A manufacturer may increase its fleet average fuel economy performance through the use of technologies that improve the efficiency of AC systems pursuant to the requirements in 40 CFR 86.1868-12. Fuel consumption improvement values resulting from the use of those AC systems must be determined in accordance with 40 CFR 600.510-12(c)(3)(i).

(2) Off-cycle technologies on EPA's predefined list. A manufacturer may increase its fleet average fuel economy performance through the use of off-cycle technologies pursuant to the requirements in 40 CFR 86.1869-12 for predefined off-cycle technologies in accordance with 40 CFR 86.1869-12(b). The fuel consumption improvement is determined in accordance with 40 CFR 600.510-12(c)(3)(ii).

(3) Off-cycle technologies using 5-cycle testing. Through model year 2026, a manufacturer may increase its fleet average fuel economy performance through the use of off-cycle technologies tested using the EPA's 5-cycle methodology in accordance with 40 CFR 86.1869-12(c). The fuel consumption improvement is determined in accordance with 40 CFR 600.510-12(c)(3)(ii).

(4) Off-cycle technologies using the alternative EPA-approved methodology. Through model year 2026, a manufacturer may seek to increase its fuel economy performance through use of an off-cycle technology requiring an application request made to the EPA in accordance with 40 CFR 86.1869-12(d).

(i) Eligibility under the Corporate Average Fuel Economy (CAFE) program requires compliance with paragraphs (b)(4)(i)(A) through (C) of this section. Paragraphs (b)(4)(i)(A), (B) and (D) of this section apply starting in model year 2024. Paragraph (b)(4)(i)(E) of this section applies starting in model year 2025.

(A) A manufacturer seeking to increase its fuel economy performance using the alternative methodology for an off-cycle technology, should submit a detailed analytical plan to EPA prior to the applicable model year. The detailed analytical plan may include information, such as planned test procedure and model types for demonstration. The plan will be approved or denied in accordance with 40 CFR 86.1869.12(d).

(B) A manufacturer seeking to increase its CAFE program fuel economy performance using the alternative methodology for an off-cycle technology must submit an official credit application to EPA and obtain approval in accordance with 40 CFR 86.1869.12(e) prior to September of the given model year.

(C) A manufacturer's plans, applications and requests approved by the EPA must be made in consultation with NHTSA. To expedite NHTSA's consultation with the EPA, a manufacturer must concurrently submit its application to NHTSA if the manufacturer is seeking off-cycle fuel economy improvement values under the CAFE program for those technologies. For off-cycle technologies that are covered under 40 CFR 86.1869-12(d), NHTSA will consult with the EPA regarding NHTSA's evaluation of the specific off-cycle technology to ensure its impact on fuel economy and the suitability of using the off-cycle technology to adjust the fuel economy performance.

(D) A manufacturer may request an extension from NHTSA for more time to obtain an EPA approval. Manufacturers should submit their requests 30 days before the deadlines in paragraphs (b)(4)(i)(A) through (C) of this section. Requests should be submitted to NHTSA's Director of the Office of Vehicle Safety Compliance at [email protected].

(E) For MYs 2025 and 2026, a manufacturer must respond within 60-days to any requests from EPA or NHTSA for additional information or clarifications to submissions provided pursuant to paragraphs (b)(4)(i)(A) and (B) of this section. Failure to respond within 60 days may result in denial of the manufacturer's request to increase its fuel economy performance through use of an off-cycle technology requests made to the EPA in accordance with 40 CFR 86.1869-12(d).

(ii) Review and approval process. NHTSA will provide its views on the suitability of the technology for that purpose to the EPA. NHTSA's evaluation and review will consider:

(A) Whether the technology has a direct impact upon improving fuel economy performance;

(B) Whether the technology is related to crash-avoidance technologies, safety critical systems or systems affecting safety-critical functions, or technologies designed for the purpose of reducing the frequency of vehicle crashes;

(C) Information from any assessments conducted by the EPA related to the application, the technology and/or related technologies; and

(D) Any other relevant factors.

(iii) Safety. (A) Technologies found to be defective or non-compliant, subject to recall pursuant to part 573 of this chapter, Defect and Noncompliance Responsibility and Reports, due to a risk to motor vehicle safety, will have the values of approved off-cycle credits removed from the manufacturer's credit balance or adjusted to the population of vehicles the manufacturer remedies as required by 49 U.S.C. chapter 301. NHTSA will consult with the manufacturer to determine the amount of the adjustment.

(B) Approval granted for innovative and off-cycle technology credits under NHTSA's fuel efficiency program does not affect or relieve the obligation to comply with the Vehicle Safety Act (49 U.S.C. chapter 301), including the “make inoperative” prohibition (49 U.S.C. 30122), and all applicable Federal motor vehicle safety standards (FMVSSs) issued thereunder (part 571 of this chapter). In order to generate off-cycle or innovative technology credits manufacturers must state—

(1) That each vehicle equipped with the technology for which they are seeking credits will comply with all applicable FMVSS(s); and

(2) Whether or not the technology has a fail-safe provision. If no fail-safe provision exists, the manufacturer must explain why not and whether a failure of the innovative technology would affect the safety of the vehicle.

Assume a hypothetical manufacturer (Manufacturer X) produces a fleet of domestic passenger automobiles in MY 2012 as follows: