The 2015 National Defense Authorization Act (NDAA) now includes bi-fuel natural gas vehicles.
The Act, recently signed by US President Barack Obama, addresses a disparity that existed in the nationwide Corporate Average Fuel Economy (CAFE) program.
Previously, OEMs could earn CAFE compliance credits when they produced bi-fuel vehicles, but these were subject to a cap for certain models. Most manufacturers have produced vehicles capable of running on E85 ethanol-based fuel to ensure they gain credits. However, fully electric models receive cap-free CAFE credits.
Companies such as GM also manufacture bi-fuel compressed natural gas (CNG) vehicles which will now be eligible for the credit-cap exemption with model-year 2016 vehicles as a result of the regulation changes.
"Enactment of this bipartisan provision moves natural gas one step closer towards becoming a mainstream fuel for our everyday cars," US Senator Jim Inhofe of Oaklahoma stated. "Natural gas is an underutilized clean and abundant domestic energy resource for U.S. transportation, in part, due to outdated regulations."