NHTSA, on behalf of the U.S. Department of Transportation (DOT), is substantially recalibrating the Corporate Average Fuel Economy (CAFE) program to bring the program into compliance with the law and to remove previous regulatory distortions which have induced manufacturers to make design decisions that have neither aligned with market demand and the needs of American families nor have delivered the consistent improvements in the fuel economy performance of manufacturer fleets, as Congress intended. This recalibration finalizes amendments to fuel economy standards for light-duty vehicles for model years 2022- 2026 and MYs 2027-2031. This final rule also finalizes amendments to compliance aspects of the program, including to vehicle classification and other compliance pathways.

NHTSA is granting an exemption to Zoox, Inc. (Zoox) to allow it to manufacture and deploy commercially a passenger car, which is equipped with an Automated Driving System (ADS), that does not comply with certain requirements in the Federal Motor Vehicle Safety Standards (FMVSS). Specifically, NHTSA grants Zoox an exemption for its Zoox sedan from certain requirements in eight FMVSS: FMVSS No. 103, Windshield defrosting and defogging systems; FMVSS No. 104, Windshield wiping and washing systems; FMVSS No. 108, Lamps, reflective devices, and associated equipment; FMVSS No. 111, Rear visibility; FMVSS No. 135, Light vehicle brake systems; FMVSS No. 201, Occupant protection in interior impact; FMVSS No. 205, Glazing materials; and FMVSS No. 208, Occupant crash protection. NHTSA is granting Zoox's application on the basis that compliance with these requirements would prevent Zoox from selling, or otherwise commercially deploying, a motor vehicle with an overall safety level at least equal to the overall safety level of a vehicle that complies with all applicable FMVSS. NHTSA grants Zoox an exemption subject to certain specified terms and conditions, including the application of an enhanced oversight condition. Under this condition, NHTSA will issue Operational Authorizations that may update and expand as Zoox's ADS technology matures.