May19
President Obama, fuel-economy proposal
Government regulators will get their prize of higher fuel-economy standards, and automakers will get the certainty of a national emissions standard, under new rules to be proposed Tuesday by President Barack Obama.
The fleet average fuel economy for automakers will rise to 35.5 mpg in 2016 under the president's proposal--10 mpg more than today's mandate. At the same time, the president's proposed rule will cut carbon emissions, thought to be a key factor in global warming.
For automakers, it will mean the need to move faster to cut vehicle weight and increase the use of fuel-saving powertrains such as hybrids and diesels. But those changes will add to the vehicle cost; government officials say the new rule will add $600 to the cost of building a vehicle.
The government says the new rule will save 1.8 billion barrels of oil. Based on U.S. consumption of 20.7 million barrels of oil a day in 2007, the government's estimate of savings equals 87 days of oil use.
Under rules set during the Bush administration, automakers had until 2020 to meet the 35-mpg average.
The new rule comes on top of an increase in fuel-economy standards announced in March. Under that move, automakers need to have a fleet average of 37.3 mpg for the 2011 model year--an 8 percent increase from today's standard. To meet the fleet average, cars will have to average 30.2 mpg and light trucks will have to get 24.1 mpg.
After a long history of opposing increases in fuel-economy standards, automakers say they support the new rules. One reason: The proposal will create a fuel economy and emissions standard effective in all U.S. states, including California. Currently, automakers create and certify separate powertrains for California and the states that follow its emissions rules.
California legislators say they will accept the new federal standard. And automakers say they'll drop lawsuits seeking to block a move by California to regulate carbon emissions.
The president's plan envisions gasoline costing $3.50 a gallon in 2016, which will also help push consumers toward smaller, fuel-efficient vehicles. Legislators also are moving along a plan to offer incentives of up to $4,500 to people who trade in an older vehicle for a new, more-fuel-efficient model.
SOURCE [ AutoWeek }
The Obama plan The stated impact of the Obama administration plan to boost U.S. automobile fuel efficiency standards and limit greenhouse gas emissions:
[Source: Reuters]
Historical Information
In 1975, the U.S. Congress assigned responsibility for setting automobile mileage standards to the National Highway Transportation Safety Administration (NHTSA), which is housed within the U.S. Department of Transportation.
In 2002, the State of California passed AB 1493, legislation which regulated auto carbon dioxide (CO2) emissions and fuel economy.
In 2004, the State of California finalized carbon dioxide regulations for automobiles. Automakers challenged the state action in federal court, saying only the federal government can set mileage standards to ensure a consistent fuel economy program across the country.
In April 2007, the U.S. Supreme Court ruled that the Environmental Protection Agency (EPA) should review possible dangers from CO2 emissions.
In December 2007, automakers supported Congress passing the Energy Independence and Security Act requiring automakers to increase fuel economy by at least 40% to 35 mpg -- thereby reducing CO2 by at least 30% -- by 2020.
In 2008, the Bush Administration denied California's request for a waiver from the federal Clean Air Act to implement its own CO2 program.
In January 2009, President Obama directed EPA to review the waiver decision.
In March, NHTSA raised Corporate Average Fuel Economy (CAFE) standards for cars in model year 2011 to 30.2 mpg, and a combined standard for cars and light trucks (minivans, SUVs, pickups) to 27.3 mpg. (The standard is based on what consumers purchase. That is, the standard represents the average mileage achieved by all vehicles sold by a manufacturer.)
In April, EPA issued a proposed finding that CO2 poses a danger to health and welfare, opening the door to federal regulation of CO2 from all sources. The U.S. House of Representatives also began hearings on climate change legislation during April.
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