WORLD TRADE  
ORGANIZATION  G/TBT/N/USA/142 
2 September 2005 
 (05-3838) 
Committee on Technical Barriers to Trade Original:   English 
  
 
NOTIFICATION 
 
The following notification is being circ ulated in accordance with Article 10.6. 
 
1. Member to Agreement notifying:   UNITED STATES
 
If applicable, name of local government involved (Articles 3.2 and 7.2):         
2. Agency responsible:   Department of Transportation/ National Highway Traffic Safety 
Administration (NHTSA) (145) 
Name and address (including telephone and fax numbers, e-mail and web-site 
addresses, if available) of  agency or authority designated to handle comments 
regarding the notification shall be  indicated if different from above:         
3. Notified under Article 2.9.2 [  X ], 2.10.1 [   ], 5.6.2 [   ], 5.7.1 [   ], other:         
4. Products covered (HS or CCCN where applicable, otherwise national tariff heading. 
ICS numbers may be provided in  addition, where applicable):   Light trucks  
(HS:  8703;  ICS:  43.060) 
5. Title, number of pages and language(s) of the notified document:   Average Fuel 
Economy Standards for Light Trucks;  Mode l Years 2008-2011 (52 pages, in English). 
6. Description of content:   This notice proposes to reform  the structure of the corporate 
average fuel economy (CAFE) program for light trucks and proposes to establish higher CAFE standards for model year (MY) 2008-2011 light trucks.  Reforming the CAFE program would enable it to achieve larger fuel savings while enhancing safety and preventing adverse economic consequences.     
During a transition period of MYs 2008-2010, manufacturers may comply with CAFE 
standards established under the reformed structure (Reformed CAFE) or with standards 
established in the traditional way (Unreformed CAFE).  This will permit manufacturers to 
gain experience with the Reformed CAFE sta ndards.  In MY 2011, all manufacturers would 
be required to comply with a Reformed CAFE standard.  The reform is based on vehicle 
size.  Under Reformed CAFE, fuel economy stan dards are restructured so that they are 
based on a measure of vehicle size called "foot print", the product of multiplying a vehicle's 
wheelbase by its track width.  Vehicles would be divided into footprint categories, each representing a different range of footprint.  A target level of average fuel economy is 
proposed for each footprint category, with smalle r footprint light trucks expected to achieve 
more fuel economy and larger ones, less.  Each manufacturer would still be required to comply with a single overall average fuel econo my level for each model year of production. 
A particular manufacturer's compliance obligation for a model year is calculated as the 
harmonic average of the fuel economy targets in each size category, weighted by the distribution of manufacturer's production volumes across the size categories. 
 G/TBT/N/USA/142 
Page 2  
 
 The proposed Unreformed CAFE standards are:  22.5 miles per gallon (mpg) for MY 2008, 
23.1 mpg for MY 2009, and 23.5 mpg for MY 2010.  The Reformed CAFE standards for 
those model years would be set at levels intende d to ensure that the industry-wide costs of 
the Reformed standards are roughly equivalent to  the industry-wide costs of the Unreformed 
CAFE standards in those model years.  For MY 2011, the Reformed CAFE standard would 
be set at the level that maximizes net bene fits, accounting for unqua ntified benefits and 
costs.  We believe that all of the proposed standards would be set at the maximum feasible level, while accounting for technological feasibility, economic practicability and other 
relevant factors. 
Since a manufacturer's compliance obliga tion for a model year under Reformed CAFE 
depends in part on its actual production in that model year, the obligation cannot be 
calculated with absolute precision until the fi nal production figures for that model year 
become known.  However, a manufacturer coul d calculate its obligation with a reasonably 
high degree of accuracy in advance of that model year, based on its product plans for the 
year.  Prior to and during the model year, the ma nufacturer would be able to track all of the 
key variables in the formula used for calcu lating the obligation (e.g., distribution of 
production among the categories and vehicle fuel economy).  This notice publishes 
estimates of the compliance obligations, by manufacturer, for MYs 2008-2011 under Reformed CAFE, using the fuel economy targets proposed by NHTSA and the product plans submitted to NHTSA by the manufacturer s in response to a request for product plans 
published in December 2003. 
This rulemaking is mandated by the Energy  Policy and Conservation Act (EPCA), which 
was enacted in the aftermath of the energy cr isis created by the oil embargo of 1973-74. 
The concerns about energy security and the e ffects of energy prices and supply on national 
economic well-being that led to the enactment of EPCA remain alive today.  Sustained growth in the demand for oil worldwide, coupled with tight crude oil supplies, is the driving 
force behind the sharp price increases seen over th e past several years.  Increasingly, the oil 
consumed in the U.S. originates in countries with political and economic situations that 
raise concerns about future oil supply and prices. 
We recognize that financial difficulties currently exist in the motor vehicle industry and that 
a substantial number of job losses have b een announced recently at large full-line 
manufacturers.  Accordingly, we have carefully  balanced the cost of the rule with the 
benefits of conservation.  We believe that , compared to Unreformed CAFE, Reformed 
CAFE would enhance overall fuel savings while  providing vehicle makers the flexibility 
they need to respond to changing market cond itions.  Reformed CAFE would also provide a 
more equitable regulatory framework by crea ting a level-playing field for manufacturers, 
regardless of whether they are full-line or limit ed-line manufacturers.  We are particularly 
encouraged that Reformed CAFE would reduce the adverse safety risks generated by the 
Unreformed CAFE program.  The transition from the Unreformed to the Reformed system 
would begin soon, but ample lead time is provi ded before Reformed CAFE takes full effect 
in MY 2011. 
We recognize also that our proposals were derived from analyses of information from a 
variety of sources, including the product plans submitted by the manufacturers in early 
2004.  We fully anticipate that the manufacturers will respond to this proposal by providing revised plans that reflect events since then.  We will evaluate the revised plans, the public 
comments, and other information and analysis in selecting the most appropriate standards 
for MYs 2008-2011. 
7. Objective and rationale, including the na ture of urgent problems where applicable:  
Prevent deceptive practices to protect consumers  G/TBT/N/USA/142 
 Page 3 
 
 
 8. Relevant documents:   70 Federal Register (FR) 51413  30 August 2005;  Title 49 Code of 
Federal Regulations (CFR) Parts 523, 533, 5 37, and 533.  Will appear in the Federal 
Register when adopted. 
9. Proposed date of adoption:   
Proposed date of entry into force:   }To be determined 
10. Final date for comments:   22 November 2005 
11. Texts available from:  National enquiry point [  X ] or address, telephone and fax 
numbers, e-mail and web-site addresses, if available of the other body:   
Full text may be found at the following Internet URLs: 
http://a257.g.akamaitech.net/7/257/24 22/01jan20051800/edocket.access.gpo.gov/2005/05-
17006.htm 
http://a257.g.akamaitech.net/7/257/24 22/01jan20051800/edocket.access.gpo.gov/2005/pdf/
05-17006.pdf 
Product Plan Information can be found at the following Internet URLs: http://a257.g.akamaitech.net/7/257/24 22/01jan20051800/edocket.access.gpo.gov/2005/05-
17005.htm 
http://a257.g.akamaitech.net/7/257/24 22/01jan20051800/edocket.access.gpo.gov/2005/pdf/
05-17005.pdf