NHTSA, on behalf of the U.S. Department of Transportation (DOT), is substantially recalibrating the Corporate Average Fuel Economy (CAFE) program to bring the program into compliance with the law and to remove previous regulatory distortions which have induced manufacturers to make design decisions that have neither aligned with market demand and the needs of American families nor have delivered the consistent improvements in the fuel economy performance of manufacturer fleets, as Congress intended. This recalibration finalizes amendments to fuel economy standards for light-duty vehicles for model years 2022- 2026 and MYs 2027-2031. This final rule also finalizes amendments to compliance aspects of the program, including to vehicle classification and other compliance pathways.

The U.S. Department of Energy ("DOE" or "the Department") proposes to update the Department's current rulemaking methodology titled, "Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment" ("Process Rule"). Specifically, DOE proposes to: make Appendix A binding on DOE for certain actions; amend objectives and considerations consistent with recent Executive orders and Department policies; add a definition of "significant energy savings"; re-instate the comparative analysis requirement, described as a "walk up" approach; include certain economic thresholds; re-instate the description of clear and convincing evidence; and revert to language from the 2020 Process Rule text, with minor edits, in several sections. In addition to requesting written comments on its proposal, DOE will also hold a public meeting to discuss this proposal and obtain additional input.