CAFE): A sales–weighted average fuel mileage calculation, in terms of miles per gallon, based on city and highway fuel economy measurements performed as part of the federal emissions test procedures. CAFE requirements were instituted by the Energy Policy and Conservation Act of 1975 (89 Statute. 902) and modified by the Automobile Fuel Efficiency Act of 1980 (94 Statute. 1821). For major manufacturers, CAFE levels in 1996 are 27.5 miles per gallon for light–duty automobiles. CAFE standards also apply to some light trucks. The Alternative Motor Fuels Act of 1988 allows for an adjusted calculation of the fuel economy of vehicles that can use alternative fuels, including fuel–flexible and dual–fuel vehicles.
The Corporate Average Fuel Economy (CAFE) regulations in the United States, first enacted by Congress in 1975, exist to regulate and improve the average fuel economy of cars and light trucks (trucks, vans and sport utility vehicles) sold in the US in the wake of the 1973 Arab Oil Embargo. It is the sales-weighted average fuel economy, expressed in miles per gallon (mpg), of a manufacturer's fleet of passenger cars or light trucks with a gross vehicle weight rating (GVWR) of 8,500 pounds (3,856 kg) or less, manufactured for sale in the United States, for any given model year. The National Highway Traffic Safety Administration (NHTSA) and Environmental Protection Agency (EPA) regulate CAFE standards.