(Kate Hinds, Transportation Nation) Another start to another school year, another debate about grading systems. So it's a good time for Transportation Secretary Ray LaHood to unveil proposed changes to fuel economy labels.

The current label --which hasn't received a major overhaul for decades-- lists estimated miles per gallon for city and highway driving, the estimated annual fuel cost, and how the vehicle's fuel economy compares to other vehicles. What the government says it lacks is a way to take new technology into account. So the United States Department of Transportation and the Environmental Protection Agency have jointly announced plans to revamp the label, which would theoretically be displayed on new cars beginning in 2012.

The agencies have laid out two options, and they're taking public comment on them (click through to see labels)

Proposed Label Option #1

Label Option 1 prominently features a letter grade (perhaps inspired by the restaurant rating system instituted by the New York City Department of Health?) that ranges from an A+ to a D. Under this proposed system, the only cars that would receive A's would be electric vehicles or plug-in hybrids. A high-performance, big-engine car that gets less then 12 miles per gallon and oozes CO2 particles--think Ferrari-- would receive a D. The majority of vehicles are expected to fall into the B- or C+ area. Label Option 2 looks a lot like the label currently in use -- it continues the visual emphasis on numbers like MPG and the annual fuel cost.

Proposed Label Option #2

While both labels basically display the same information, the idea of a letter grade is spurring debate. One USA Today editorial called the grading system a "value judgment" and wanted to know "why exactly would consumers want to accept some bureaucrat's judgment about the best balance to strike between fuel efficiency and emissions? People's priorities vary." But others say that most Americans already understand letter grades, and using them on the label would establish a clear ranking system.

Whatever the outcome, it looks like the 2012 fuel economy label will have impeccable marketing credentials. The proposed designs were created with input from an outside panel that included executives from Craigslist, Pandora, and Zappos.