While not generally a fan of government mandates, I like the fuel economy standards that are required for cars and trucks. The same might have been accomplished by market forces even without the standards, but they appear to have been a significant force in improving mileage.
Having said that, it is amusing to see any US administration, Democrat or Republican, bragging about setting tough standards for the future, long after they will be gone from politics and no longer responsible for actually achieving those standards. They require no discipline or effort now, but are trumpeted as if they are achievements of current officeholders. It's similar to politicians who have grand schemes for balancing the budget that rely on tax increases and/or program cuts that don't go into effect for years to come.
Anyway, here's the EPA announcement of the new fuel standards:
WASHINGTON, DC – The Obama
Administration today finalized groundbreaking standards that will increase fuel
economy to the equivalent of 54.5 mpg for cars and light-duty trucks by Model
Year 2025. When combined with previous standards set by this Administration,
this move will nearly double the fuel efficiency of those vehicles compared to
new vehicles currently on our roads. In total, the Administration’s national
program to improve fuel economy and reduce greenhouse gas emissions will save
consumers more than $1.7 trillion at the gas pump and reduce U.S. oil
consumption by 12 billion barrels.
“These fuel standards represent
the single most important step we’ve ever taken to reduce our dependence on
foreign oil,” said
President Obama. “This historic agreement builds on the
progress we’ve already made to save families money at the pump and cut our oil
consumption. By the middle of the next decade our cars will get nearly 55 miles
per gallon, almost double what they get today. It’ll strengthen our nation’s
energy security, it’s good for middle class families and it will help create an
economy built to last.”
The historic standards issued
today by the U.S. Department of Transportation (DOT) and the U.S. Environmental
Protection Agency (EPA) build on the success of the Administration’s standards
for cars and light trucks for Model Years 2011-2016. Those standards, which
raised average fuel efficiency by 2016 to the equivalent of 35.5 mpg, are
already saving families money at the pump.
Achieving the new fuel efficiency
standards will encourage innovation and investment in advanced technologies
that increase our economic competitiveness and support high-quality domestic
jobs in the auto industry. The final standards were developed by DOT’s National
Highway Traffic Safety Administration (NHTSA) and EPA following extensive
engagement with automakers, the United Auto Workers, consumer groups,
environmental and energy experts, states, and the public. Last year, 13 major
automakers, which together account for more than 90 percent of all vehicles
sold in the United States, announced their support for the new standards. By
aligning Federal and state requirements and providing manufacturers with
long-term regulatory certainty and compliance flexibility, the standards
encourage investments in clean, innovative technologies that will benefit
families, promote U.S. leadership in the automotive sector, and curb pollution.
“Simply put, this groundbreaking
program will result in vehicles that use less gas, travel farther, and provide
more efficiency for consumers than ever before—all while protecting the air we
breathe and giving automakers the regulatory certainty to build the cars of the
future here in America,” said Transportation Secretary Ray LaHood. “Today,
automakers are seeing their more fuel-efficient vehicles climb in sales, while
families already saving money under the Administration’s first fuel economy
efforts will save even more in the future, making this announcement a victory
for everyone.”
“The fuel efficiency standards
the administration finalized today are another example of how we protect the
environment and strengthen the economy at the same time,” said EPA
Administrator Lisa P. Jackson. “Innovation and economic growth are already
reinvigorating the auto industry and the thousands of businesses that supply
automakers as they create and produce the efficient vehicles of tomorrow.
Clean, efficient vehicles are also cutting pollution and saving drivers money
at the pump.”
The Administration’s combined
efforts represent the first meaningful update to fuel efficiency standards in
decades. Together, they will save American families more than $1.7 trillion
dollars in fuel costs, resulting in an average fuel savings of more than $8,000
by 2025 over the lifetime of the vehicle. For families purchasing a model Year
2025 vehicle, the net savings will be comparable to lowering the price of
gasoline by approximately $1 per gallon. Additionally, these programs will
dramatically reduce our reliance on foreign oil, saving a total of 12 billion
barrels of oil and reducing oil consumption by more than 2 million barrels a
day by 2025 – as much as half of the oil we import from OPEC each day.
The standards also represent
historic progress to reduce carbon pollution and address climate change.
Combined, the Administration’s standards will cut greenhouse gas emissions from
cars and light trucks in half by 2025, reducing emissions by 6 billion metric
tons over the life of the program – more than the total amount of carbon
dioxide emitted by the United States in 2010.
President Obama announced the
proposed standard in July 2011, joined by Ford, GM, Chrysler, BMW, Honda, Hyundai,
Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota, and Volvo, as well
as the United Auto Workers. The State of California and other key stakeholders
also supported the announcement and were integral in developing this national
program.
In achieving these new standards,
EPA and NHTSA expect automakers’ to use a range of efficient and advanced
technologies to transform the vehicle fleet. The standards issued today provide
for a mid-term evaluation to allow the agencies to review their effectiveness
and make any needed adjustments.
Major auto manufacturers are
already developing advanced technologies that can significantly reduce fuel use
and greenhouse gas emissions beyond the existing model year 2012-2016
standards. In addition, a wide range of technologies are currently available
for automakers to meet the new standards, including advanced gasoline engines
and transmissions, vehicle weight reduction, lower tire rolling resistance,
improvements in aerodynamics, diesel engines, more efficient accessories, and
improvements in air conditioning systems. The program also includes targeted
incentives to encourage early adoption and introduction into the marketplace of
advanced technologies to dramatically improve vehicle performance, including:
- Incentives for electric
vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles;
- Incentives for hybrid
technologies for large pickups and for other technologies that achieve
high fuel economy levels on large pickups;
- Incentives for natural gas
vehicles;
- Credits for technologies
with potential to achieve real-world greenhouse gas reductions and fuel
economy improvements that are not captured by the standards test
procedures.