Congress Agrees to Increase CAFE to 35 MPG by 2020

In exchange for a higher benchmark than automakers had wanted, the industry would continue to get credit for making vehicles that run on alternate fuels such as gasoline blended with ethanol.

Published: 04-Dec-2007

Congress agreed to raise fuel-economy standards by 40 percent for cars and light trucks by 2020 in a move described by lawmakers as a historic step toward cutting U.S. oil consumption and curbing global warming.

The new rules would require the U.S. to set mileage standards for each type of vehicle to meet a national average of 35 miles per gallon. In exchange for a higher benchmark than automakers had wanted, the industry would continue to get credit for making vehicles that run on alternate fuels such as gasoline blended with ethanol.

``This landmark energy legislation will offer the automobile industry the certainty it needs, while offering flexibility to automakers and ensuring we keep American manufacturing jobs and continued domestic production of smaller vehicles,' House Speaker Nancy Pelosi said in a statement.

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