Program Overview

EPA’s Fuel Economy Programs This fact sheet describes the U.S. Environmental Protection 

Agency’s (EPA) Fuel Economy Program. EPA is responsible for 

providing the fuel economy data that is used by the U.S. Department 

of Energy (DOE) to publish the annual Fuel Economy Guide, by the 

U.S. Department of Transportation (DOT) to administer the Corporate Average Fuel Economy (CAFE) program, and by the Internal 

Revenue Service (IRS) to collect Gas Guzzler taxes. 

Introduction 

Fuel economy, or gas mileage, continues to be a major area of public and policy 

interest for several reasons. Passenger vehicles account for approximately 40 

percent of all U.S. oil consumption, so increasing energy efficiency helps reduce our 

dependence on imported oil and enhances the nation’s energy security. Likewise, 

it helps conserve our fossil resources for future generations. Passenger vehicles also 

contribute about 20 percent of all U.S. carbon dioxide emissions, so increasing fuel 

efficiency helps reduce greenhouse gas emissions. Finally, the more miles a car gets 

per gallon of gasoline, the more money the owner saves on fuel costs. Given the 

importance of fuel economy, the federal government administers three programs 

to provide information to consumers about fuel economy and to encourage the 

production of fuel efficient vehicles. 

Fuel Economy Labels and Fuel Economy Guide 

Once a year, EPA and DOE publish the Fuel Economy Guide listing the fuel 

economy estimates (expressed in miles per gallon) of new passenger vehicles. The 

Fuel Economy Guide is published and distributed by DOE based on EPA’s data. The 

fuel economy estimates listed in the guide are based on laboratory testing performed 

by the auto manufacturers and EPA. 

What Vehicles Are Tested? 

Not every vehicle is tested for fuel economy. Instead, manufacturers are required to 

split each model into smaller groups, based upon the various options available that 

can impact fuel economy (such as vehicle weight, transmission type and engine size). 

A vehicle from each of these groups with the highest projected sales must be tested. 

Office of Transportation and Air Quality 

 EPA-420-F-09-067

 October 2009
Program Overview

Also, passenger cars and light trucks with a gross vehicle weight rating (GVWR) greater than 

8,500 pounds are exempt from fuel economy requirements, and are not tested for fuel economy 

(however, they are still subject to Federal emission requirements.) 

Manufacturers test all the vehicles at their laboratories. EPA confirms about 10-15 percent of 

the vehicles at its National Vehicles and Fuel Emission Laboratory in Ann Arbor, Michigan. 

How are Vehicles Tested? 

Vehicles are driven over identical driving patterns by professional drivers in controlled 

laboratory conditions on a dynamometer, which is like a treadmill for cars. The conditions that 

occur during driving, such as wind drag and inertia are accounted for on the dynamometer. Prior 

to 2008 model year vehicles, there were two types of tests that were conducted to determine the 

city and highway estimates: The city test and the highway test. Beginning with 2008 model 

year vehicles, data from five different tests are used to determine these estimates: FTP test, 

Highway test, High Speed test, Air Conditioning test and Cold Temperature test. A description 

of the details of these five tests is in the table below. The key elements of each test is shown in 

bold: 

Driving 

Schedule 

Attributes 

Test Schedule 

City Highway High Speed AC Cold Temp 

Trip Type 

Low speeds 

in stop-andgo urban 

traffic 

Free-flow 

traffic at 

highway 

speeds 

Higher speeds; 

harder 

acceleration & 

braking 

AC use under 

hot ambient 

conditions 

City test w/ 

colder outside 

temperature 

Top Speed 56 mph 60 mph 80 mph 54.8 mph 56 mph 

Average 

Speed 20 mph 48 mph 48 mph 22 mph 20 mph 

Max. 

Acceleration 3.3 mph/sec 3.2 mph/sec 8.46 mph/sec 5.1 mph/sec 3.3 mph/sec 

Simulated 

Distance 11 mi. 10 mi. 8 mi. 3.6 mi. 11 mi. 

Time 31 min. 12.5 min. 10 min. 9.9 min. 31 min. 

Stops 23 None 4 5 23 

Idling time 18% of time None 7% of time 19% of time 18% of time 

Engine 

Startup* Cold Warm Warm Warm Cold 

Lab 

temperature 68-86oF 95oF 20oF 

Vehicle air 

conditioning Off Off Off On Off 

* A vehicle's engine doesn't reach maximum fuel efficiency until it is warm. 


Program Overview

How Are the Label Estimates Calculated? 

Fuel economy estimates are calculated from the emissions generated during the tests using a 

carbon balance equation. We know how much carbon is in the fuel, so by precisely measuring 

the carbon compounds expelled in the exhaust we can calculate the fuel economy. 

For pre-2008 model year vehicles, the city and highway tests were used to determine city and 

highway fuel economy, respectively. The results of the tests were adjusted downward to account 

for typical road conditions that can affect fuel economy, such as higher speeds, cold temperature, 

and use of air conditioning. The city results were adjusted downward by 10 percent, and the 

highway results by 22 percent. 

For 2008 and later model year vehicles, the fuel economy label estimates are determined by 

either performing the entire set of five tests on the test vehicle, and using that data to calculate 

city and highway estimates, or, at the manufacturer’s option until the 2011 model year, by 

applying mathematical equations to the basic data from the city and highway tests to derive 

estimates that simulate the effects of all five test cycles. 

Combined fuel economy is determined by weighting the city at 55 percent and the highway at 

45 percent using the following equation: 

FEcombined = 1 / (( .55 / city FE) + (.45 / hwy FE)) 

What Information Is In The Fuel Economy Guide and on The Fuel 

Economy Label? 

The fuel economy city and highway estimates are printed in the Fuel Economy Guide and 

posted on the window sticker labels of all new cars and light trucks. Also included on the labels 

and in the Guide are the estimated annual fuel costs as determined from the combined city and 

highway fuel economy, assuming 15,000 miles traveled per year and using the following fuel 

price projections obtained from the Department of Energy): 

Regular Unleaded Gasoline $2.60 per gallon 

Premium Unleaded Gasoline $2.80 per gallon 

Diesel Fuel $2.70 per gallon 

E85 $2.10 per gallon 

LPG $2.10 per gallon 

CNG $1.45 per gallon equivalent 

Electricity $0.10/0.20 per kilowatt-hour 

Hydrogen $6.30 per kilogram

The fuel prices are determined in advance to allow time for printing labels and the Fuel 

Economy Guide. For more recent annual fuel cost estimates using current fuel prices, visit 

www.fueleconomy.gov. The Fuel Economy Guide is published and distributed to dealerships 

across the United States. New car dealers are required to have copies of the Guide available to 

consumers. The Guide is also available online at www.fueleconomy.gov. 


Program Overview

Beginning with 2008 model year vehicles, EPA has redesigned the fuel economy label to better 

present the fuel economy information to consumers who are shopping at dealers’ lots. Improved 

features include more details about how annual fuel costs are estimated, an easy-to-understand 

graph showing how the fuel economy for that vehicle compares to all others within its class, and 

a web link to go to for further information 

Corporate Average Fuel Economy (CAFE) 

Corporate Average Fuel Economy (CAFE) is the required average fuel economy for a vehicle 

manufacturer’s entire fleet of passenger cars and light trucks manufactured for sale in the United 

States for each model year. There are separate average fuel economy standards for passenger 

cars and light trucks. Light trucks include those with a gross vehicle weight rating (GVWR) 

of 8,500 pounds or less. CAFE values are obtained using the same test data generated by the 

fuel economy tests used to determine the fuel economy estimates for the Guide and labels, but 

the test results are not adjusted to account for real-world conditions. Instead, the results from 

the city and highway tests are combined. EPA administers the testing program which generates 

the fuel economy data and determines the procedures for calculating the fuel economy values 

for CAFE. The National Highway Traffic and Safety Administration (NHTSA), which is part 

of DOT, is responsible for establishing and amending the CAFE standards for light trucks. 

Congress sets the CAFE standards for cars. EPA reports the CAFE results for each manufacturer 

to NHTSA annually, and NHTSA determines if the manufacturers comply with the CAFE 

standards and assesses penalties as required. 

Green Vehicle Guide 

Every year since 2000, EPA publishes emissions information for the new model year cars and 

light trucks on its Green Vehicle Guide Web site at www.epa.gov/greenvehicles. This userfriendly site is designed to help consumers identify the cleanest, most efficient vehicle that 

meets their needs. It provides consumers with the opportunity to compare the relative emissions 

performance of vehicles by means of the 0-10 emissions rating assigned to each vehicle. Vehicles 

rated higher than others are designed to emit fewer pollutants such as carbon monoxide, 

nitrogen oxides, hydrocarbons and particulate matter. Vehicles can be viewed individually or by 

class, such as SUVs, sedans, or pickups. 

The emissions ratings are based on the EPA emission standards the vehicle was certified to meet. 

Because manufacturers can choose from a complex set of emission standards, it is not always 

easy to understand them. The Green Vehicle Guide “demystifies” these standards, and allows 

consumers to see that they may have a choice to buy a cleaner, more efficient vehicle, regardless 

of the size, type or style they are interested in. 

The Green Vehicle Guide also identifies the cleanest, most fuel efficient vehicles with a 

“SmartWay” logo. To view more information about SmartWay vehicles, visit www.epa.gov/ 

greenvehicles/Aboutratings.do

.


Gas Guzzler Tax 

The Gas Guzzler Tax is imposed on manufacturers of new model year cars (not minivans, sport 

utility vehicles or pick-up trucks) that fail to meet the minimum fuel economy level of 22.5 

mpg. The tax is intended to discourage the production and purchase of fuel inefficient vehicles. 

The fuel economy figures used to determine the tax are based on combined city and highway 

fuel economy that is unadjusted for real-world conditions, and thus is different from the fuel 

economy estimates provided in the Fuel Economy Guide. The tax is collected by the Internal 

Revenue Service and normally paid by the manufacturer or importer after production has 

ended for the model year and is based on the total number of gas guzzler vehicles which were 

introduced into commerce in the United States. The amount of the tax paid is displayed on the 

vehicle’s fuel economy label (the window sticker on new cars). 

For More Information 

You can access additional information about these programs at the following web sites: 

•	 Information on EPA’s Fuel Economy Program, including regulations, test data, 


and consumer tips:


www.epa.gov/fueleconomy/index.htm 

•	 Information on vehicle fuel economy, advanced technology, and possible ta nformation on vehicle fuel economy, advanced technology, and possible tax 

incentives, including a downloadable version of the Fuel Economy Guide: 

www.fueleconomy.gov 

•	 Information on CAFE, including CAFE standards, NHTSA Information on CAFE, including CAFE standards, NHTSAs annual report ’s annual repor

summarizing the fuel economy performance of the current fleet, rulemaking 

activities, and fines collected: 

www.nhtsa.dot.gov/portal/site/nhtsa/menuitem.d0b5a45b55bfbe582f57529cdba046a0/ 

•	 Information about the Gas Guzzler Tax is available at: 

www.epa.gov/fueleconomy/guzzler/index.htm 

•	 The IRS’s Gas Guzzler Tax form (IRS Form 619 The IRS’s Gas Guzzler Tax form (IRS Form 6197): www.irs.gov/pub/irs-pdf/f6197.pdf 

Program Overview