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President Obama Announces National Fuel Efficiency Policy WASHINGTON, DC – President Obama today – for the first time in history – set in motion a new national policy aimed at both increasing fuel economy and reducing greenhouse gas pollution for all new cars and trucks sold in the United States. The new standards, covering model years 2012-2016, and ultimately requiring an average fuel economy standard of 35.5 mpg in 2016, are projected to save 1.8 billion barrels of oil over the life of the program with a fuel economy gain averaging more than 5 percent per year and a reduction of approximately 900 million metric tons in greenhouse gas emissions. This would surpass the CAFE law passed by Congress in 2007 required an average fuel economy of 35 mpg in 2020. "In the past, an agreement such as this would have been considered impossible," said President Obama. "That is why this announcement is so important, for it represents not only a change in policy in Washington, but the harbinger of a change in the way business is done in Washington. As a result of this agreement, we will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years. And at a time of historic crisis in our auto industry, this rule provides the clear certainty that will allow these companies to plan for a future in which they are building the cars of the 21st century." This groundbreaking policy delivers on the President's commitment to enact more stringent fuel economy standards and represents an unprecedented collaboration between the Department of Transportation (DOT), the Environmental Protection Agency (EPA), the world's largest auto manufacturers, the United Auto Workers, leaders in the environmental community, the State of California, and other state governments. "The President brought all stakeholders to the table and came up with a plan to help the auto industry, safeguard consumers, and protect human health and the environment for all Americans," said EPA Administrator Lisa P. Jackson. "A supposedly 'unsolvable' problem was solved by unprecedented partnerships. As a result, we will keep Americans healthier, cut tons of pollution from the air we breathe, and make a lasting down payment on cutting our greenhouse gas emissions." "A clear and uniform national policy is not only good news for consumers who will save money at the pump, but this policy is also good news for the auto industry which will no longer be subject to a costly patchwork of differing rules and regulations," said Carol M. Browner, Assistant to the President for Energy and Climate Change. "This an incredible step forward for our country and another way for Americans to become more energy independent and reduce air pollution.", A national policy on fuel economy standards and greenhouse gas emissions is welcomed by the auto manufacturers because it provides regulatory certainty and predictability and includes flexibilities that will significantly reduce the cost of compliance. The collaboration of federal agencies also allows for clearer rules for all automakers, instead of three standards (DOT, EPA and a state standard). "President Obama is uniting federal and state governments, the auto industry, labor unions and the environmental community behind a program that will provide for the biggest leap in history to make automobiles more fuel efficient," said Department of Transportation Secretary Ray LaHood. "This program lessens our dependence on oil and is good for America and the planet." ------------------ ------------------ SAFE Praises New Fuel Economy Rules Securing America's Future Energy (SAFE) today praised the Obama administration for its announcement of aggressive national fuel economy goals for cars and light trucks. "The policy announced today combines two absolutely essential elements: aggressive new fuel economy goals, and a national framework that provides regulatory certainty for the industry," SAFE President and CEO Robbie Diamond said. "We commend the administration on their ambitious approach -- one that follows recommendations we have made not only to improve fuel economy standards, but to do so as aggressively as possible in the upcoming years instead of putting it off, and one that sets a consistent national standard instead of a patchwork of different rules." The new rules will increase the national fleetwide average standard for cars and light trucks to 35.5 miles per gallon (39 mpg for cars and 30 mpg for light trucks) by 2016, four years faster than required by the 2007 Energy Independence and Security Act (EISA). The new standards will be applied nationwide. "Reducing the amount of oil consumed by our transportation sector -- which today accounts for 70 percent of the petroleum our country uses every single day -- is a crucial step toward a safer, more prosperous nation," Diamond continued. "But it cannot be the final step. Ultimately, as long as our cars and trucks, and therefore our entire economy, are dependent on oil, we remain vulnerable. It is crucial that policymakers in both the House and Senate continue to move forward with proposed comprehensive legislation that will eventually result in an electrified transportation system fueled by a wide variety of domestic fuels instead of oil." In 2006, the Energy Security Leadership Council (ESLC) -- a group of business executives and retired military leaders led by General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President and CEO of FedEX Corporation -- released their Recommendations to the Nation on Reducing U.S. Oil Dependence, helping shape 2007's EISA. In September 2008, the ESLC released A National Strategy for Energy Security, a new plan building on the accomplishments of 2007 by proposing the electrification of the short-haul transportation fleet along with all of the required infrastructural upgrades necessary for that effort, and measures -- including increased oil and natural gas production -- to keep our nation secure in the interim. Earlier this year, legislation encapsulating many of the fundamental elements of the National Strategy was introduced in both the U.S. House and Senate. Securing America's Future Energy (SAFE) is an action-oriented, nonpartisan organization that aims to reduce America's dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy. Source: Securing America's Future Energy http://www.secureenergy.org ------------------ ------------------ FORD STATEMENT ON ONE NATIONAL STANDARD FOR FUEL ECONOMY The following is a statement from Ford President and CEO Alan Mulally regarding President Barack Obama's announcement of one national standard for fuel economy: ------------------ ------------------ BMW Group supports Obama Administration's Proposal on Future National Fuel and Green House Gas Regulations ------------------ ------------------ Statement by American Honda Motor Co., Inc. on Proposed Establishment of a Single National Standard for Vehicle GHG Emissions and Fuel Economy Honda supports President Obama's initiative to establish a single national standard addressing both greenhouse gas emissions and fuel economy. We have long supported a national approach to these problems. Though it will be a challenging standard to meet, we will embrace it. Honda has consistently developed and implemented technologies aimed at improving fuel efficiency and minimizing the environmental impacts of our products and operations on society. We look forward to working with the Administration in the implementation of this program. - - 05/19/2009 ------------------ ------------------ Toyota Statement in Response to the White House Announcement of a National Standard for Fuel Economy and Greenhouse Gas Emissions On Tuesday, President Obama is expected to officially announce a broad-based commitment to establish a single national program to reduce carbon emissions and increase fuel economy. The commitment has the strong support of a dozen automakers, including Toyota, as well as 14 states, including California, which had been pursuing an independent approach. "We welcome the Administration's leadership in developing a coordinated fuel efficiency and greenhouse gas standard. This is something we have encouraged and sought for a very long time," says Jim Lentz, President, Toyota Motor Sales, USA, Inc. "The big winner is customers. A unified national program ensures American consumers will have the choice of vehicles they want and need, as well as the fuel efficiency and low emissions they expect, without the potential confusion of multiple standards." To learn more about the auto industry's position, please read from the Alliance of Automobile Manufacturers at www.autoalliance.org ------------------ ------------------ Chrysler LLC Statement in Response to Administration Announcement of National Standard Chrysler welcomes the President's announcement of a framework for a single national approach for fuel economy and greenhouse gas standards. We thank the Administration for their leadership. Today's announcement begins an important process of harmonizing state and federal fuel economy programs. Chrysler has long been an advocate for a national approach to fuel economy as the most effective way to help the nation achieve energy security and environmental sustainability. With regulatory clarity and certainty, Chrysler and its alliance partner, Fiat, will now be able to concentrate their resources on developing a nationwide fleet of clean, fuel-efficient vehicles that will help support its revitalization and benefit American consumers. These fuel-efficient vehicles will feature both improvements to conventional technology and technology that is entirely new. For example, Chrysler will soon introduce an all-new, high-volume V-6 engine that will deliver up to 8 percent improved fuel economy across the company's current vehicle lineup. Chrysler's alliance with Fiat will initially deliver consumers a world-class small engine and overall powertrain technology that will rapidly bring to market even more fuel-efficient, environmentally friendly small cars. Chrysler's entirely new technology will be found in vehicles developed by ENVI, an organization within Chrysler that is focused on electric vehicles as its primary clean-vehicle technology. Chrysler's product plan includes the introduction of several production electric vehicle models by 2013. We look forward to working with the Obama administration and others as this process moves forward toward an outcome that is economically and environmentally sustainable......Auburn Hills, Mich., May 18, 2009 ------------------ ------------------ NADA Commends President's Support for National Fuel Economy Program The following statement from the chairman of the National Automobile Dealers Association, John McEleney, is in response to today's White House announcement of a new national fuel economy and greenhouse gas program: "NADA commends President Obama for making the right decision to embrace a federal fuel-economy standard over an unworkable patchwork of state-based laws. NADA is also pleased that the Environmental Protection Agency and National Highway Traffic Safety Administration will use a system based on a vehicles' 'attributes,' such as size and engine type. This will help dealers to have a mix of cars and trucks available on their lots that meet the needs of their customers. "Dealers are also heartened by the President's intent to have the EPA and NHTSA coordinate their regulatory efforts. Implementation of this next step, however, could turn out to be challenging because these agencies have two very different goals under federal law. NADA is looking forward to hearing more details of how EPA and NHTSA will reconcile their differences and how their program will actually work. "Dealers have long supported fuel economy improvements that are feasible and affordable. NADA will work with both EPA and NHTSA to ensure they fully consider how changes in the nation's fuel-economy standard will impact jobs, vehicle safety, consumer demand and vehicle affordability. At issue is not whether manufacturers are capable of building cars and trucks that comply, but more importantly, whether the motoring public will want to buy them." Source: National Automobile Dealers Association ------------------ ------------------ New Fuel Economy Policies are Historic Step Forward for Consumers, Environment, U.S. Energy Security, Says Alliance ------------------ ------------------ As President Obama Orders Tough Tailpipe Regulations, Consumer Group Offers 'A' to 'F' Solutions for Cleaner and Cheaper Transportation Americans Want Green Solutions But Worry About Costs; Handbook Identifies Wasted Billions, Best Paths As President Obama announces new national tailpipe emission standards modeled on California's, Consumer Watchdog is releasing a report that outlines how to affordably make the transition. The nonprofit, nonpartisan advocacy group today sent to the White House and Congress its new "Road to Cleaner and Cheaper" handbook, which urges specific policies and grades vehicle and fuel choices on their cleaner/cheaper balance, from "A" for hybrid electric vehicles to "F" for fuel made from coal. The vehicle/fuel grades in the handbook are: A. Hybrid and plug-in hybrid vehicles, particularly if also capable of using biofuels. B. Ethanol, particularly second-generation cellulosic ethanols. B. Biodiesel, particularly if produced from a source other than soybeans. C. Compressed natural gas. (Though CNG grade improves if used only for limited-range trucking and public transit). D. Hydrogen. Conventional production methods energy-wasting, cost and fueling issues unresolved. F. Fuel from coal. A polluting pork magnet for coal industry. The handbook lists pros and cons for all of these choices, including cost and speed of development. Congress and the White House must also get oil and fuel markets under control and ease the transition to greener private transportation, said Consumer Watchdog. "The United States is far more dependent than other developed nations on cars and roads, something that cannot be swiftly undone," says the handbook, written by Consumer Watchdog research director Judy Dugan. "But it can become cleaner in affordable ways. That is the point of this plain-language handbook." The "Road" handbook also urges tougher oversight and greater transparency in energy trading markets and the fuel refining industry, to quell speculation and gaming of markets that result in a price roller-coaster. It suggests ways to encourage clean, renewable fuels and protect them from start-and-stop investment. "If government visibly gets oil markets and oil companies under regulatory control, if transition costs are fairly and transparently shared, and if the environmental benefits are clear, consumers will embrace the goal of a cleaner transportation system that ultimately will be cheaper than staying on the petroleum roller-coaster," says the introduction to the handbook. "Our grading system will be controversial but is well-defended," said Dugan. "We defy anyone to show that the current practice of using taxpayer subsidies to produce motor fuels from coal is decent public policy, or even that automakers can produce an affordable, durable car that runs on cleanly produced hydrogen." The handbook lists pros and cons for all of these choices, including cost and speed of development. The handbook urges that clean-vehicle purchase incentives, market regulations and tax credits from cap and trade proceeds be utilized to keep consumers on board for steady reductions in fossil fuel use. "Congress and the White House are aiming to complete cap and trade legislation by the end of the year," said Dugan. "These big initiatives have to consider effects on consumers or risk being seen as giveaways to industry while families pay the price. Congress can start by mustering the will to eliminate oil drilling subsidies and redirect the funds to green transportation." Showing a visible will to stand up to industry lobbying will give Americans who have no lobby of their own more trust in all that follows, said Consumer Watchdog. The Road to Cleaner and Cheaper EXECUTIVE SUMMARY This handbook offers solutions for the most visible and pervasive sector of the current oil/environmental crisis: transportation by automobile. Americans travel more than 3.5 trillion vehicle miles per year (not even including occasional long-distance drives). They face often-staggering gasoline costs and emit millions of tons of pollutants. Our assessments and recommendations aim at reducing the use of oil as a personal transportation fuel while offering consumers alternatives that are ultimately both cleaner and cheaper. Consumer Watchdog agrees with proponents of energy efficiency and conservation that both are fast, effective ways to reduce all types of fossil fuel dependence. These solutions are intertwined with vehicle use, and addressed here only in that context, for example in higher CAFE standards. Similarly, attention to mass transit is essential. But mass transit will not address the problems of millions of Americans who lack access to robust urban transit systems -- meaning most Americans. In the handbook, we highlight policies aimed at more effectively monitoring and regulating the oil industry and ensuring that the clean fuels and technologies of our automobile future don't become the next energy oligopoly. We also grade the various alternative fuels in order to help policymakers and the public assess the choices for the future of automobile transportation. 1. GRADING THE OPTIONS: In order to spend taxpayer money wisely and make smart choices about our transportation policy, policymakers must distinguish between policies, programs and technologies that have a broad public benefit and those for which the benefits are narrowly accrued by special interests. Consumer Watchdog has graded many of the technologies and fuels being debated in the planning for America's energy future. The details discussed in the handbook are important and offer some caveats to these grades, but in summary: Grade A- Hybrid, Plug-In Hybrid and All-Electric vehicles Grade B- Ethanol and Biodiesel fueled vehicles Grade C- Natural Gas fueled vehicles (higher grade for use in short-haul bus and truck fleets) Grade D- Hydrogen fueled vehicles Grade F- Coal-based transportation fuels
2. ENERGY MARKET OVERSIGHT AND REGULATION: The neglect and demolition of reasonable government oversight of the oil industry has cost motorists billions of dollars and wreaked havoc on the economy and the environment. Energy markets and refinery operations in particular suffer from lack of modern regulation. There are two crucial sources of unreasonably high pump prices, both tied to the deregulatory focus of national energy policy over the past several decades: rapacious speculation of commodity traders both in and outside of oil companies and market manipulations by oil refiners. Energy commodity markets require a major regulatory overhaul to distinguish between pure financial speculation and transactions involving actual buyers and sellers. All trading should be far more transparent; financial speculators, including financial trading departments inside major oil companies, should also play by tougher rules. These include putting up more of the value of a trade in each transaction, limits on highly complex trading schemes that can be misused and overall limits on daily trades. In order to protect against a speculation-driven and distorted global commodity market for renewable fuels, regulation of biofuels must be established in concert with the expansion of the biofuels market. Oil refining has become a tool for oil companies and other large players to manipulate fuel supply to keep prices up. The regional gasoline price spikes accompanying 2008's Hurricane Ike were exaggerated by refiner cutbacks that had already left the nation with its lowest gasoline supply in years. The price spikes after Hurricane Katrina in 2005 were even more dramatic and lasting, needlessly so. The Department of Energy should have power to require an average 30-day national supply of gasoline on hand rather than the recent 20-22 day supply average. Refiners should be required to report their cost of oil and their wholesale prices for finished products, such as gasoline and diesel, to enable regulators to prevent price-gouging at the wholesale level. Refinery industry data should be publicly available down to the level of individual refineries, and ultimately refinery profits should be regulated along the model of public utilities. 3. RENEWABLE FUELS AND CLEAN VEHICLES: Policy choices can transition our transportation system to more efficient, cleaner and cheaper fuels, without having to pick the exact formula. However, policy should be guided by realistic, consumer-oriented thinking that does not encourage wasteful projects such as transportation fuel from coal. Hybrid vehicles and the coming generation of plug-in hybrid vehicles have few environmental drawbacks; they can calmly coexist with, and be improved by, biofuels. Electric hybrid-diesel vehicles, for instance, will be able to burn biodiesel without modification and achieve higher mileage than gasoline-electric hybrids. All types of dual-fuel hybrids should be encouraged. Biofuels' promise is limited today not by the availability of vehicles but by lack of fueling infrastructure and the drawbacks of using crops as feedstocks. Policy decisions should focus on second-generation biofuels and regulated development of fueling stations at existing gasoline stations. Compressed natural gas and propane are cleaner than gasoline and are useful transitional fuels for urban bus and commercial fleets, such as short-haul trucks. Policy decisions should encourage these appropriate uses, but not at the cost of increased liquid natural gas imports or higher utility rates. Hydrogen remains a chimera, because of vehicle cost and the energy cost of producing hydrogen as a fuel. While its promise of emission-free vehicles will continue to entice adherents, the lack of even remotely near-term viability makes it a lower priority approach. Coal-to-liquid fuel is no more than a pork magnet for the coal industry, more polluting than petroleum and a distraction from better alternatives. 3. WHO PAYS, WHO BENEFITS: Switching to a transportation economy that uses far less petroleum does not come free, but the transition can be fair -- softening costs to consumers through direct and indirect subsidy and requiring corporations and shareholders to bear part of the burden. Congress must first eliminate billions of dollars worth of unjustifiable petroleum subsidies and tax excess petroleum profits, returning some of the proceeds to consumers and investing the rest in renewable energy. Carbon tax, auction and trade, or cap and trade systems that will be negotiated in Congress will garner billions in federal revenue. While these alternatives are not specifically discussed in this handbook on transportation, offering substantial consumer credits and other direct incentives to offset the initial costs of reducing emissions will be important in reducing transportation use of fossil fuels. Source: Consumer Watchdog |
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