WASHINGTON - Building on President Obama's historic national program, the E.P.A. (EPA) and the U.S. Department of Transportation (DOT) today formally unveiled their joint suggestion to set stronger fuel economy and greenhouse gas pollution requirements for model year 2017-2025 passenger cars and light trucks. Cars, SUVs, minivans, and pickup trucks are currently responsible for nearly 60 percent of U.S. transportation-related petroleum use and greenhouse gas emissions.
Today's announcement is the latest in a series of executive actions the Obama Administration is taking to strengthen the economy and move the country forward because we can't wait for Congressional Republicans to act. When combined with other historic steps this administration has taken to increase energy efficiency, this suggestion will save Americans over $1.7 trillion at the pump, nearly $8,000 per vehicle by 2025. These combined actions also will reduce America's dependence on oil by an estimated twelve billion barrels, and, by 2025, reduce oil consumption by 2.2 million barrels per day - enough to offset almost a quarter of the current level of our foreign oil imports. Taken together, these actions will also slash six billion metric tons in greenhouse gas emissions over the life of the programs.
Today's suggested requirements alone will slash oil consumption by four billion barrels and cut two billion metric tons of greenhouse gas pollution over the lifetimes of the vehicles sold in those years.
"These unprecedented requirements are a remarkable leap forward in improving fuel efficiency, strengthening national security by reducing our dependence on oil, and protecting our climate for generations to come. We expect this plan will not only save consumers money, it will ensure automakers have the regulatory certainty they need to make key decisions that create jobs and invest in the future," said U.S. Transportation Secretary Ray LaHood. "We are pleased that we've been able to work with the auto industry, the states, and leaders in the environmental and labor communities to move toward even tougher requirements for the 2nd phase of the president's national plan to enhance fuel economy and reduce pollution."
"By setting a course for steady enhancements in fuel economy over the long term, the Obama Administration is ensuring that American car buyers have their choice of the most efficient vehicles ever produced in our country. That will save them money, reduce our nation's oil consumption and cut harmful emissions in the air we breathe," said E.P.A. Administrator Lisa P. Jackson. "This is an important addition to the landmark clean cars plan that President Obama initiated to establish fuel economy requirements in excess of 2 years ago. The progress we made with the help of the auto industry, the environmental community, consumer groups and others will be expanded upon in the years to come -- benefitting the health, the environment and the economy for the American people."
The suggested plan for model year 2017-2025 passenger cars and trucks is expected to require increases in fuel efficiency equivalent to 54.5 mpg if all reductions were made through fuel economy improvements. These enhancements would save consumers an average of up to $6,600 in fuel costs over the lifetime of a model year 2025 vehicle for a net lifetime savings of $4,400 after factoring in related increases in vehicle cost. Overall, the net benefit to society from this rule would total in excess of $420 billion over the lifetime of the vehicles sold in model year 2017-2025.
Today's action builds on the success of the 1st phase of the Obama Administration's national program(2012-2016), which will raise fuel efficiency equivalent to 35.5 mpg by 2016 and result in an average light vehicle tailpipe CO2 level of 250 grams per mile. These requirements are already in effect and saving consumers money at the pump now. Combined with 2011 fuel economy requirements and the requirements in effect for 2012-2016, today's suggestion represents the most significant federal action ever taken to reduce greenhouse gas emissions and enhance fuel economy. Taken together, these actions would reduce greenhouse gas emissions by half and result in model year 2025 light-duty vehicles with nearly double the fuel economy of model year 2010 vehicles.
The national policy on fuel economy requirements and greenhouse gas emissions created by DOT and E.P.A. provides regulatory certainty and flexibility that reduces the cost of compliance for auto manufacturers while reducing oil consumption and harmful air pollution. By continuing the national plan developed for model year 2012-2016 vehicles, E.P.A. and DOT have designed a suggestion that allows manufacturers to keep producing a single, national fleet of passenger cars and light trucks that satisfies all federal and California standards. It also ensures that consumers will continue to enjoy a full range of vehicle choices with performance, utility and safety features that meet their individual needs.
The requirements will rely on innovative technologies that are expected to spur economic growth and create high-quality jobs across the country. Major auto manufacturers are already heavily invested in 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 accessible for automakers to meet the new standards, including advanced gasoline engines and transmissions, vehicle weight reduction, lower tire rolling resistance, enhancements in aerodynamics, diesel engines, more efficient accessories, and enhancements in air conditioning systems. The requirements should also spur manufacturers to increasingly explore electric technologies such as start/stop, hybrids, plug-in hybrids, and electric vehicles. The model year 2017-2025 suggestion includes a number of incentive programs to encourage early adoption and introduction of "game changing" advanced technologies, such as hybridization for pickup trucks.
The suggestion released today follows President Obama's announcement in July that the administration and 13 major automakers representing in excess of 90 percent of all vehicles sold in the U.S. have agreed to build on the 1st phase of the national vehicle program. E.P.A. and DOT worked closely with a broad range of stakeholders to develop the proposal-including manufacturers, the United Auto Workers, the State of California, and consumer and environmental groups.
There will be an opportunity for the public to review on the suggestion for 60 days after it is published in the Federal Register. In addition, DOT and E.P.A. project to hold several public hearings around the country to allow further public input. California projects to issue its suggestion for model year 2017-2025 vehicle greenhouse gas requirements on December seven and will finalize its requirements in January.
More on the NHTSA and EPA's notice of suggested rulemaking:
http://www.nhtsa.gov/fuel-economy
More information:
http://www.epa.gov/otaq/climate/regulations.htm
