From AAIA Capital Report

The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) on May 25 announced new fuel economy labels for passenger cars and light trucks, with the objective of providing consumers with greater information to compare fuel economy and pollution emissions among vehicles. While the new labels are voluntary in 2012, they will be required on 2013 models, including hybrid and electric vehicles.

While providing traditional information such as miles-per-gallon ratings for city and highway driving, the new fuel economy labels will for the first time provide the following:

• Five-year comparison of fuel costs compared to average vehicles. 
• For hybrid and electric vehicles, the labels will provide an equivalent of a miles-per- gallon rating so consumers can compare their performance to gasoline engines.
• Estimate of how much fuel/electricity is used over 100 miles.
• Information on how long a hybrid/electric vehicle can travel on a full battery.
• Driving range and charging time for vehicles.
• Easy-to-read smog and pollution emissions ratings so consumers can compare emissions to other vehicles.

While the new labels provide a significant amount of environmental and fuel economy information, letter grades for a vehicle’s emissions rating will not be on the labels. This idea, which was initially an option at the beginning of the new labels development discussion, was opposed by automobile manufacturers but supported by environmental groups. After testimony from public hearings and input from consumer focus groups, EPA administrator Lisa Jackson decided to not include the letter grades, citing concern that many consumers would be confused by the letter grading and perceive the letter grade as the overall rating of the automobile, not its fuel economy rating.

For examples of the new fuel economy and emissions labels, visit www.fueleconomy.gov/feg/label/.