EPA, DOT Propose Letter Grade Labels for Vehicle Fuel Economy

To highlight environmental advantages of upcoming electric vehicles and respond to evidence that existing sales labels have been ineffective and confusing to carbuyers, the Environmental Protection Agency (EPA) and Department of Transportation are proposing a new label design that would prominently feature a letter grade based on fuel economy and tailpipe emissions.

“New fuel economy labels will keep pace with the new generation of fuel efficient cars and trucks rolling off the line, and provide simple, straightforward updates to inform consumers about their choices in a rapidly changing market,” said EPA Administrator Lisa Jackson. “We want to help buyers find vehicles that meet their needs, keep the air clean and save them money at the pump.”

Current labels for new vehicles prominently display fuel economy figures, in miles per gallon (mpg), in large typeface. Information about air pollutant emissions and how the vehicle's fuel economy compares to other vehicles in its class also appears on the label, but in much smaller print. Industry observers report that consumers find current labels complicated to read and that, without a fixed reference to compare figures, they ignore the information.

The new label would integrate this information into a single measure, using the familiar letter grade system from A+ to D. Grading will be tough, however, as only all-electric and plug-in hybrid vehicles are expected to earn an A+, A, or A-. While the EPA says that no vehicle will "fail" under this system, given that all vehicles comply with the Clean Air Act, vehicles such as a high-powered Ferrari F141 sports car, which gets 13 mpg in highway driving and only nine mpg in the city, would get a D.

Automakers and dealers have criticized the proposed rules as arbitrary and excessive, claiming the government should not be making value judgments for consumers. While the familiarity of the letter grade system has advantages, according to critics, it also harkens back to negative associations with failure (even if the scale does not go below a D).

The DOT and EPA will accept public comments on the proposal for 60 days after its publication in the Federal Register.