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U.S. Adopts Stricter Fuel Efficiency Standards

The Obama administration recently issued final rules that would require automakers to nearly double the average fuel economy of new cars and trucks by 2025, reported The New York Times. This new fuel efficiency mandate requires an average fuel economy of 54.5 miles per gallon (mgp) for the 2025 model year. Existing rules for the Corporate Average Fuel Economy (CAFÉ) program require an average of about 29 mpg, with gradual increases to 35.5 mpg by 2016.

Obama announced that the stricter fuel standards represent “the single most important step” his administration has ever taken to reduce U.S. dependence on foreign oil. The benefits are numerous: reduction in oil consumption by 12 billion barrels; savings of $1.7 trillion in fuel costs; average savings of more than $8,000 a vehicle by 2025; reduction in greenhouse gas emissions by half by 2025 through the elimination of six billion tons over the course of the program; and creation of hundreds of thousands of jobs by increasing the demand for new technologies.

Republican presidential candidate Mitt Romney criticized the new fuel efficiency standards as “extreme” as they “would limit the choices when consumers shop for a new car.” Remarked Romney’s camp: “The president tells voters that his regulations will save them thousands of dollars at the pump, but always forgets to mention that the savings will be wiped out by having to pay thousands of dollars more upfront for unproven technology that they may not even want.”

Nevertheless, in a New York Times’ Op-ed article entitled “Cleaner Cars, a Safer Planet”, it was noted that this fuel efficiency mandate is “an important step on America’s path to a lower-carbon and more-secure energy future…. They may also serve as proof that well-tailored government regulation can achieve positive results and that consensus among old enemies — in this case environmentalists and the car companies — is possible even at a time of partisan discord.”

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