CORPORATE AVERAGE FUEL ECONOMY

(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.