Average will likely be between 50 and 52.6 mpg.

The Environmental Protection Agency has released its Draft Technical Assessment Report as part of the agency's Midterm Evaluation of Light-duty Vehicle GHG (greenhouse gas) Emissions Standards for Model Years 2022-2025.

Despite sounding like a lot of regulatory mumbo jumbo, the MTE is an important report which will affect the corporate average fuel economy target for the 2025 model year.  As the agency explains, the results of the report will determine whether or not the proposed fuel economy target of 54.5 miles per gallon should be raised, lowered, or remain the same.

The report notes that "manufacturers are adopting fuel economy technologies at unprecedented rates" and automakers as well as suppliers have developed innovative technologies which help to increase fuel economy and reduce emissions. These improvements suggest the new fuel economy standards can largely be met by using more efficient gasoline powered engines.  The agency also revealed it projects only a modest number of hybrids and a handful of electric vehicles will be needed by manufacturers to meet the new fuel economy standards.

The report is largely positive but Automotive News points out government officials have largely abandoned the 54.5 mpg target as consumers continue to embrace crossovers and trucks.  Given this, the government now believes the fleet average fuel economy level will now be between 50 and 52.6 mpg by 2025.

The Draft Technical Assessment report is just the first step in the MTE and a final determination isn't due until April of 2018.

Source: EPA and Automotive News

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