The federal government, California regulators and auto industry representatives have agreed on fuel economy and carbon dioxide (CO2) emissions limits for model year ’17–’25 vehicles. The fleetwide average will rise from 35.5 mpg at the end of ’16 to 54.5 mpg for model year ’25—a nearly 5% annual increase with slightly lower standards for light-duty trucks.

The agreement preserves California’s authority to regulate CO2 emissions and other greenhouse gases while creating a single national standard. CO2 emissions and fuel economy are linked since carbon dioxide is a byproduct of fossil-fuel combustion. The automakers pursued an agreement to increase fuel economy, which would also preserve affordability, vehicle choice, jobs and safety. The U.S. Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) will now draft regulations to implement the agreement.

For details, contact Stuart Gosswein at stuartg@sema.org.