Fuel Economy Harmonization Act

To amend chapter 329 1. Short title This Act may be cited as the Fuel Economy Harmonization Act 2. Credits for exceeding average fuel economy standards Section 32903 of title 49, United States Code, is amended— (1) in subsection (a)— (A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (B) in the matter preceding subparagraph (A), as redesignated, by striking When (1) In general When ; (C) in paragraph (1)(B), as redesignated, by striking paragraph (1) subparagraph (A), (D) by adding at the end the following: (2) Model years 2016 through 2021 Notwithstanding paragraph (1)(B), beginning with model year 2016 and ending with model year 2021, a manufacturer may apply any credits earned after model year 2009 pursuant to paragraph (1), which have not been applied pursuant to paragraph (1)(A), to any model year beginning after the model year for which the credits are earned. ; (2) in subsection (b)(2)(B), by striking subsection (a)(1) of this section subsection (a)(1)(A) (3) in subsection (g)— (A) in paragraph (3)— (i) in subparagraph (A), by striking 2011 2010 (ii) in subparagraph (B), by striking 2017, 1.5 miles per gallon; and 2016, 1.5 miles per gallon; (iii) by striking subparagraph (C) and inserting the following: (C) for model years 2017 and 2018, 2.0 miles per gallon; (D) for model years 2019 through 2021, 4.0 miles per gallon; and (E) for model year 2022 and subsequent model years, 6.0 miles per gallon. ; and (B) in paragraph (5), by striking 2010 2009 3. Calculation of average fuel economy Section 32904(a) of title 49, United States Code, is amended by adding at the end the following: (3) For model years 2012 through 2025, if requested by a manufacturer, the average fuel economy calculated by the Administrator for the manufacturer’s passenger and nonpassenger automobiles shall include off-cycle technology fuel economy credits equivalent to the credits calculated by the Administrator for the off-cycle technology under the Administrator’s vehicle emissions standards for the same or closest model year, provided that the technology has a direct impact upon improving fuel economy performance. .

Summary: Fuel Economy Harmonization Act This bill revises requirements for calculating Corporate Average Fuel Economy (CAFE) credits earned by a passenger automobile manufacturer for exceeding minimal required CAFE standards in a particular model year. Beginning in model year 2016 through model year 2021, a manufacturer may apply any credits earned after model year 2009 to subsequent model years. The bill revises fuel economy credit transferring program requirements allowing a manufacturer of a fleet that exceeds CAFE standards to transfer the earned credits and to apply them within that fleet to a compliance category of automobiles that fails to achieve prescribed CAFE standards. The maximum increases in any compliance category attributable to transferred credits are: 1.0 mile per gallon, for model years 2010-2013; 1.5 miles per gallon, for model years 2014-2016; 2.0 miles per gallon, for model years 2017 and 2018; 4.0 miles per gallon, for model years 2019-2021; 6.0 miles per gallon, for model year 2022 and subsequent model years. The bill requires the Environmental Protection Agency to modify its calculation of average fuel economy for model years 2012 through 2025 at the request of a manufacturer for its passenger and nonpassenger automobiles.