US reportedly preparing a change to EV fuel to economy calculation

The US Department of Energy (DOE) is reportedly proposing a significant revision to the method for calculating electric vehicles (EV) petroleum-equivalent fuel economy ratings, which could impact automakers’ ability to meet government fuel economy requirements.

The current system, used in the National Highway Traffic Safety Administration’s Corporate Average Fuel Economy (CAFE) programme, has remained unchanged for over two decades.

A report from the Reuters news agency said the DOE argument is that the current method leads to increased net petroleum use, as excessive credits for EV adoption allow for lower fuel economy in conventional vehicles, which make up the majority of sales.

Environmental groups and Tesla Inc (NASDAQ:TSLA) have backed the proposed change, while the Alliance for Automotive Innovation warns that it may discourage EV adoption, the story added.

The Environmental Protection Agency is set to propose new rules this week to spur a significant increase in EV sales and reduce vehicle emissions.