The essence of each competition was to design, build and race super-efficient vehicles that achieved 100 MPGe (2.35 liter/100 kilometer) efficiency, produced less than 200 grams/mile well-to-wheel CO2 equivalent emissions, and could be manufactured for the mass market.

[3] The PIAXP has an educational program, funded by a $3.5 million grant from the United States Department of Energy, to engage students and the public in learning about advanced vehicle technologies, energy efficiency, climate change, alternative fuels, and the science, technology, engineering, and math behind efficient vehicle development.

[5] A little more than year later, on 12 April 2007, the Foundation formally announced the creation of the prize at the 2007 New York Auto Show and set the purse at $10 million for a car that could get 100 mpg‑US (2.4 L/100 km; 120 mpg‑imp) and be sold for a reasonable price.

[11] Within the competition division, there are two vehicle classes—mainstream and alternative—both of which have the same requirements for fuel economy and emissions, but differing design constraints.

Both classes allow entries that are modifications of an existing popular vehicle, provided that all PIAXP requirements are met.

Vehicles in both classes must have a fuel economy of 100 MPGe (21 kWh or 2.35 liters of petrol/100 kilometer) and produce less than 200 grams/mile CO2 emissions (measured well-to-wheel).

Vehicles in both classes also must have features expected of a modern automobile including an enclosed cabin with windshield and windows, operating windshield wipers, washers, headlights, horn, indicators, brake lights, reflective devices, rear and side-view mirrors, and seat belts.

The alternate class vehicle must seat at least two people, accelerate from 0 to 60 mph (97 km/h) in 18 seconds or less, and be able to drive 100 miles (160 km) without refueling or recharging.

The alternative vehicle has no minimum number of wheels, but it must remain upright when stopped with no driver inputs.

[14] While the main focus of PIAXP is fuel economy and carbon emissions, not safety, the vehicles must be "production capable".

[15] Teams are also required to submit a business plan which clearly demonstrates an ability to produce 10,000 vehicles per year.

With the lack of mainstream entrants from established automobile companies, a Demonstration Division was created so that automakers could at least display and promote their highest efficiency vehicles alongside the main competition.

[17] The competition timeline was finalized as follows:[18] Accepted teams must provide evidence that their vehicles are production capable, by providing a detailed Data Submissions covering four areas: Those that pass this hurdle will be invited to bring their vehicles to the competition events.

Those that pass the initial technical and safety inspections and tests will participate in the remaining competition events.

To successfully complete the race, the vehicles had to maintain a minimum average speed (maximum time allowed) while meeting the PIAXP requirements for fuel consumption (90 MPGe) and emissions.

[23] The United States Department of Energy joined the PIAXP as a sponsor, funding an educational program targeted to young people.