Final answer:
The true statements about the CAFE standards are that they are designed to regulate fuel efficiency for cars and light trucks, aim to reduce fuel consumption by automakers, and can result in penalties for non-compliance. The correct answer is D) The standards are set by the Environmental Protection Agency (EPA).
Step-by-step explanation:
The statements about the Corporate Average Fuel Economy (CAFE) standards that are true include:
- A) CAFE standards are designed to regulate the fuel efficiency of passenger cars and light trucks.
- B) The standards aim to reduce the overall fuel consumption of vehicles sold by automakers.
- E) Manufacturers failing to meet CAFE standards may face penalties.
Compliance with CAFE standards is mandatory for automotive manufacturers, and the standards are actually administered by the National Highway Traffic Safety Administration (NHTSA), in consultation with the Environmental Protection Agency (EPA).
Therefore, statement C is incorrect, and statement D is only partially correct as the EPA is involved, but not the sole setter of the standards.