From AAIA Capital Report

WASHINGTON, D.C. -- The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) have announced that their joint proposal to establish 2025 corporate average fuel economy (CAFE) standards for automobiles and light trucks will be pushed back due to delays in the rulemaking process. The agencies were originally scheduled to release their proposal last week; however, it is now expected to be out by mid-November. The agencies have stated that vital coordination with key stakeholders – specifically the car companies and the state of California – is taking longer than expected.

President Obama announced in late July a joint effort by EPA and NHTSA to increase CAFE requirements to 54.5 miles per gallon (mpg) by 2025. This new standard, which was agreed upon by the automobile manufacturers and unions earlier this summer, will require a 5 percent annual increase in fuel economy through 2025 for passenger cars and a 3.5 percent annual increase through 2021, followed by a 5 percent annual increase through 2025 for light-duty trucks. Automakers will have the option of taking advantage of numerous credits for creating new fuel efficiency technologies, essentially lessening the burden on them to meet the 54.5 mpg requirement.