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President Obama Announces New Fuel Economy Standards
President Obama announced the next phase in the Administration's program to increase fuel efficiency and reduce greenhouse gas pollution for all new cars and trucks sold in the United States. These new standards
will cover cars and light trucks for Model Years 2017-2025, requiring performance equivalent to 54.5 mpg in 2025 while reducing greenhouse gas emissions to 163 grams per mile.
Taken together, the standards established under this Administration span Model Years 2011 to 2025. They will save consumers money, reduce our dependence on oil, and protect the environment:
Savings at the pump
- Thanks to the standards, consumers will save an estimated $1.7 trillion dollars in real fuel costs over the life of their vehicles.
- By 2025, the standards are projected to save families an estimated $8,200 in fuel savings over the lifetime of a new vehicle, relative to the Model Year 2010 standard.
Cutting oil dependence
- As our cars and trucks become more fuel efficient, we will need to use less oil. Over the life of the program, the standards will
save an estimated 12 billion barrels of oil – nearly four years' worth of consumption by light-duty vehicles at current levels.
- By 2025, the standards for MY 2011-2025 will reduce oil consumption by an estimated 2.2 million barrels a day – more than we
import from any country other than Canada. As the vehicle fleet turns over and older vehicles are replaced with more efficient
ones, the oil savings from these standards will grow, ultimately reaching over 4 million barrels a day – nearly as much as we import from all OPEC countries combined.
- The MY 2011-2025 standards are critical to meeting President Obama's goal of cutting oil imports by one-third by 2025, contributing over half the savings needed to meet the President's goal.
Protecting human health and the environment
- The standards will reduce carbon dioxide pollution by over 6 billion metric tons – equivalent to the emissions from the United States last year, or what the Amazon rainforest absorbs in three years.
- The standards will protect public health by cutting air pollutants such as air toxics, smog, and soot.
Developed in partnership with auto manufacturers, the State of California, the United Auto Workers (UAW), national environmental
organizations and other stakeholders, these achievable and cost effective standards will bring the nation over halfway to the
President's goal of reducing oil imports by a third by 2025. These standards thus represent a key component of the comprehensive
energy policy that this Administration has pursued since day one, which aims to increase safe and responsible energy production at
home while reducing our overall dependence on oil with cleaner alternative fuels and greater efficiency.
U.S. EPA on President Obama's Announcement Historic 54.5 mpg Fuel Efficiency Standard
- Consumers will save $1.7 trillion at the pump, $8K per vehicle by 2025
WASHINGTON, DC – President Obama announced a historic agreement with thirteen major automakers to pursue the next phase in the
Administration's national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year
2025. The President was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan,
Toyota and Volvo – which together account for over 90% of all vehicles sold in the United States – as well as the United Auto Workers (UAW), and the State of California, who were integral to developing this agreement.
"This agreement on fuel standards represents the single most important step we've ever taken as a nation to reduce our dependence
on foreign oil," said President Obama. "Most of the companies here today were part of an agreement we reached two years ago to
raise the fuel efficiency of their cars over the next five years. We've set an aggressive target and the companies are stepping up to
the plate. By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon."
Building on the Obama administration's agreement for Model Years 2012-2016 vehicles, which will raise fuel efficiency to 35.5 mpg and
begin saving families money at the pump this year, the next round of standards will require performance equivalent to 54.5 mpg or 163
grams/ mile of CO2 for cars and light-duty trucks by Model Year 2025. Achieving the goals of this historic agreement will rely on
innovative technologies and manufacturing that will spur economic growth and create high-quality domestic jobs in cutting edge industries across America.
These programs, combined with the model year 2011 light truck standard, represent the first meaningful update to fuel efficiency
standards in three decades and span Model Years 2011 to 2025. Together, they will save American families $1.7 trillion dollars in fuel
costs, and by 2025 result in an average fuel savings of over $8,000 per vehicle. Additionally, these programs will dramatically cut the
oil we consume, saving a total of 12 billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million barrels a day – as much as half of the oil we import from OPEC every day.
The standards also curb carbon pollution, cutting more than 6 billion metric tons of greenhouse gas over the life of the program – more
than the amount of carbon dioxide emitted by the United States last year. The oil savings, consumer, and environmental benefits of this comprehensive program are detailed in a new report entitled Driving Efficiency: Cutting Costs for Families at the Pump and
Slashing Dependence on Oil. (see link below)
The Environmental Protection Agency (EPA) and the Department of Transportation (DOT) have worked closely with auto
manufacturers, the state of California, environmental groups, and other stakeholders for several months to ensure these standards are
achievable, cost-effective and preserve consumer choice. The program would increase the stringency of standards for passenger cars
by an average of five percent each year. The stringency of standards for pick-ups and other light-duty trucks would increase an
average of 3.5 percent annually for the first five model years and an average of five percent annually for the last four model years of the program, to account for the unique challenges associated with this class of vehicles.
"These standards will help spur economic growth, protect the environment, and strengthen our national security by reducing America's
dependence on foreign oil," said U.S. Transportation Secretary Ray LaHood. "Working together, we are setting the stage for a new generation of clean vehicles."
"This is another important step toward saving money for drivers, breaking our dependence on imported oil and cleaning up the air we
breathe," said EPA Administrator Lisa P. Jackson. "American consumers are calling for cleaner cars that won't pollute their air or break
their budgets at the gas pump, and our innovative American automakers are responding with plans for some of the most fuel efficient vehicles in our history."
A national policy on fuel economy standards and greenhouse gas emissions provides regulatory certainty and flexibility that reduces
the cost of compliance for auto manufacturers while addressing oil consumption and harmful air pollution. Consumers will continue to have access to a diverse fleet and can purchase the vehicle that best suits their needs.
EPA and NHTSA are developing a joint proposed rulemaking, which will include full details on the proposed program and supporting
analyses, including the costs and benefits of the proposal and its effects on the economy, auto manufacturers, and consumers. After
the proposed rules are published in the Federal Register, there will be an opportunity for public comment and public hearings. The
agencies plan to issue a Notice of Proposed Rulemaking by the end of September 2011. California plans on adopting its proposed rule in the same time frame as the federal proposal.
Given the long time frame at issue in setting standards for MY2022-2025 light-duty vehicles, EPA and NHTSA intend to propose a
comprehensive mid-term evaluation. Consistent with the agencies' commitment to maintaining a single national framework for vehicle
GHG and fuel economy regulation, the agencies will conduct the mid-term evaluation in close coordination with California.
In achieving the level of standards described above for the 2017-2025 program, the agencies expect automakers' use of advanced
technologies to be an important element of transforming the vehicle fleet. The agencies are considering a number of incentive
programs to encourage early adoption and introduction into the marketplace of advanced technologies that represent "game changing" performance improvements, including:
Incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles;
Incentives for advanced technology packages for large pickups, such as hybridization and other performance-based strategies;
Credits for technologies with potential to achieve real-world CO2 reductions and fuel economy improvements that are not captured by the standards test procedures.
In addition, EPA plans to propose provisions for:
Credits for improvements in air conditioning (A/C) systems, both for efficiency improvements and for use of alternative, lower global warming potential refrigerant;
Treatment of compressed natural gas (CNG);
Continued credit banking and trading, including a one-time carry-forward of unused MY 2010-2016 credits through MY 2021.
Administration, Auto Industry in Sync with Americans' Opinion on Fuel Economy
The Pew Charitable Trusts, Washington, DC - 07/29/2011
Against a backdrop of sharp differences on a variety of current public policy issues, new polling by the Pew Clean Energy Program demonstrates strong support from American voters for immediate action on vehicle fuel economy.
In a national poll* conducted for Pew by the bipartisan polling team The Mellman Group, Inc. and Public Opinion Strategies between
July 8-12, 2011, 91 percent of Americans agree that dependence on foreign oil is a "very serious" or "somewhat serious" threat to
U.S. security, with 61 percent indicating it is a "very serious" threat. These views cut across demographic and partisan lines, with 65
percent of Republicans, 57 percent of Democrats and 62 percent of independents identifying dependence on foreign oil as a "very serious threat" to national security.
The polling results reinforce news reports of an ambitious proposed interim fuel economy rule agreement reached by the Obama
administration, the auto industry and other stakeholders to improve fuel efficiency for cars and light-duty trucks in model years 2017-2025. The proposed standard is to be announced Friday, July 29, 2011.
The survey found 82 percent of respondents support an increased fuel efficiency standard of 56 miles per gallon (mpg) by 2025, with
68 percent who "favor strongly." Overwhelming majorities in every demographic subgroup support increased fuel efficiency to 56 mpg, including 70 percent of Republicans, 87 percent of Democrats and 88 percent of independents.
Voters across all regions also backed increasing fuel economy to 56 mpg, with 80 percent in the Northeast, 85 percent in the Midwest,
77 percent in the South and 86 percent in the West. Further, 92 percent of Americans believe it is either "very important" (69
percent) or "somewhat important" (23 percent) for the United States to take action now to increase fuel efficiency.
"This proposed rule will give Americans what they want," said Phyllis Cuttino, director of the Pew Clean Energy Program. "It will reduce
our dependence on foreign oil, save consumers money at the pump, spur technological innovation, create jobs in the automobile industry and reduce harmful pollution."
"Just as they did in 2009, the administration, the auto industry and other stakeholders have come together and agreed to a higher
mpg standard—this time 54.5 mpg—that will both serve the interest of the public and provide market certainty for industry," Cuttino
said. "We look forward to seeing the details of the proposed rule. As it is finalized over the coming months, the administration must ensure that it is not further watered down."
*This analysis represents the findings of a national survey of 1,000 likely 2012 general election voters. Interviews were conducted by
telephone July 8-12, 2011, using a national registration-based sample. Respondents were screened for being likely voters. The margin
of error for this survey is +/-3.1 percent at the 95 percent level of confidence. The margin of error is higher for subgroups.
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