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Apr-23-2008UPDATE: New Rules Aim To Accelerate Fuel Efficiency(topic overview)
CONTENTS:
- The proposal would give auto manufacturers flexibility, and would introduce a new program in which carmakers who do better than required could "trade" credits to automakers who turn out vehicles that don't meet the standards. (More...)
- The Energy Department said gas prices hit a new record national average Monday of $3.51 a gallon, up 12 cents over the last week. (More...)
- In the 1990s, California launched a voluntary vehicle retirement program. (More...)
- Keep in mind that the 2007 model number was 31.3 for cars and 23.1 for trucks. (where ever those magic numbers come from) I don't think its too much to ask for automakers to squeeze what they can to get up to the New CAFE. With diesel, hybrid, direct injection gas, VVT, turbochargers, high strength steel, aluminum and composites I think they can easily get there and still make great cars. (the car will only get about 27 mpg in the real world, but it will make CAFE happy) They will cost more, but it's worth it. (More...)
- The government estimates that the additional fuel milage will add about $650 to the price of a car and more than $900 to the price of a truck by 2015. (More...)
- The exact fuel economy of the overall fleet in 2015 depends on a number of assumptions. (More...)
- Gas prices are out of control and rising. (More...)
- If finalized, the proposed increases will force dramatic changes in automakers' vehicle lineups, with a greater focus on hybrids and diesels and wider use of smaller, less powerful engines to meet the requirements. (More...)
- Manufacturers will have different requirements for cars and trucks of different sizes based on vehicle sales. (More...)
- With fewer old cars on the road and more cars nearer the average age, emissions are reduced. (More...)
- Many new product projects have been put on hold. (More...)
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The proposal would give auto manufacturers flexibility, and would introduce a new program in which carmakers who do better than required could "trade" credits to automakers who turn out vehicles that don't meet the standards. The Bush administration projects that this approach would result in an annual increase of 4.5 percent, with cars reaching a 35.7 mpg average, and light trucks a 28.6 mpg average, by 2015, in the so-called Corporate Average Fuel Economy program. Noting that the plan would surpass the 3.3 percent annual increase mandated by Congress, Transportation Secretary Mary Peters said, "This proposal will also help us all breathe a little easier by reducing carbon dioxide emissions from tailpipes, cutting fuel consumption, and making driving a little more affordable." NHTSA estimates that the proposal, which is now open for public comment before being finalized, will cost automakers $16 billion, which they will pass along to consumers in the form of higher vehicle prices. [1] WASHINGTON (AFP) — The U.S. administration Tuesday proposed a stepped-up schedule for improving automobile fuel efficiency, accelerating plans in a law enacted last year. Transportation Secretary Mary Peters said the new proposal would increase fuel efficiency for both passenger vehicles and light trucks by 4.5 percent per year over the five-year period ending in 2015. This would be a 25 percent total improvement that exceeds the 3.3 percent baseline proposed by Congress last year. "This proposal is historically ambitious, yet achievable," Peters said. "It will help us all breathe a little easier by reducing tailpipe emissions, cutting fuel consumption and making driving a little more affordable."[2]
WASHINGTON (AP) - The government is expected to release a new proposal to raise fuel efficiency standards in new cars and trucks. It will put the nation's auto fleet on track to reach 35 miles per gallon by 2020. The proposal will set fuel economy standards through 2015, and it's expected to be finalized before the end of the Bush administration. It's a response to a new energy law pushed by Congress last year and signed by President Bush. Congress sought tougher standards requiring the nation's fleet of new vehicles to increase its efficiency by 10 miles per gallon from its current average of 25 miles per gallon.[3] Congress mandated the move in the big energy bill passed in December, the first overall improvement in U.S. fuel economy in nearly 30 years. The Department of Transportation's National Traffic Highway Safety Administration projects that under its plan, passenger cars would average 31.2 miles per gallon and light trucks, including minivans and sport utility vehicles, would average 25 mpg in model year 2011--the first goalpost in the program.[1] WASHINGTON -- The U.S. Transportation Department today will propose a sweeping increase in fuel economy standards, requiring passenger cars to average 35.7 miles per gallon and light trucks 28.6 mpg by 2015, The Detroit News has learned.[4]
Under the regulations, the overall fleet of new vehicles, including cars and light trucks, would be required to average 25.3 miles per gallon in 2010 and reach 31.6 miles per gallon by 2015, an increase of 4.5 percent each year. Such standards would save about 55 billion gallons of fuel over the life of the vehicles affected and slash $100 billion in gas costs for consumers, according to data from the department.[5] WASHINGTON--The government proposed Tuesday new mileage standards requiring automakers to increase average fuel efficiency of vehicles 25 percent by 2015. Fuel efficiency standards for both cars and light trucks would increase 4.5 percent each year, from 25.3 miles per gallon in 2010 to 31.6mpg in 2015.[6] Under the proposed new rules, passenger cars need to reach 35.7 miles per gallon by 2015, up from the current 27.5, and light trucks are required to achieve 28.6 miles per gallon, up from 23.5. That's a 25 percent increase in fuel efficiency standards over 5 years, starting with the 2011 model year.[7]
The Detroit News first reported that the proposal would boost the fuel efficiency of the nation's passenger car fleet to 35.7 mpg and the truck fleet to 28.6 miles per gallon by 2015, or about 4.5 percent per year.[8] McLEAN, Va -- U.S. Transportation Secretary Mary Peters unveiled Tuesday a historic proposal to boost fuel efficiency of the nation's cars and trucks to 31.6 miles per gallon by 2015 -- a faster timetable than what Congress ordered in December when it ordered the first rewrite passenger cars standards since 1975. "This proposal is historically ambitious, yet achievable," Peters said in announcing the new proposal at a federal highway research center just outside Washington.[8] According to Transportation Secretary Mary Peters, the new Corporate Average Fuel Economy (CAFE) standards will require the average new passenger cars sold in the United States to achieve 35.7 miles per gallon by 2015, up from 27.5 mpg currently.[9]
There are penalties too, set at $5.50 for each tenth of a mile per gallon that a manufacturer's average fuel economy falls short of the standard for a given model year. The National Highway Traffic Safety Administration has collected $735.4 million to date in CAFE penalties, the largest ever being paid by DaimlerChrysler for its 2006 model year import passenger car fleet.[7]
Two-thirds of that savings would come from light trucks, where fuel-efficient technology offerings are fewer and less popular than in the passenger car market. DOT estimates that it will cost automakers $47 billion to meet those requirements. Officials at the National Highway Safety Traffic Administration, which wrote the proposed rule, assigned fuel economy mandates to each automaker based on the characteristics of their individual fleets and product plans. They used "footprint" size, or area between a vehicle's four wheels, as a key variable in setting standards for individual automakers.[10] Washington, D.C. ''' The U.S. National Highway Traffic Safety Administration (NHTSA) has proposed substantial increases in the Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks.[11] The Department of Transportation's National Highway Traffic Safety Administration (NHTSA) is expected to release proposed car and light truck fuel economy standards for model years 2011 to 2015 as early as next week.[12]
The new standard would boost average fuel economy for all cars and light trucks to 31.6 mpg, according to documents published today by the Department of Transportation.[13] DETROIT - Happy Earth Day! The National Highway Traffic Administration's gift to automakers Tuesday is a new standard that sets Corporate Average Fuel Economy at 31.6 mpg by 2015. It's an interim step to the 35-mpg federal standard by 2020 that Congress approved late last year. The automakers have anticipated, though not eagerly, this interim standard, which sets car CAFE at 35.7 mpg and truck CAFE at 28.6 mpg by '15.[14] The annual goals are meant to achieve an overall 25 percent improvement in fuel efficiency for the auto industry by 2015. These updated standards are more strict than the 3.3 percent annual average increase in fuel economy approved by Congress last year, but Peters said the new standards still give automakers the chance to achieve economic success.[15] Automakers opposed increases to the regulations in previous years, but supported a compromise version of the legislation in Congress amid rising gasoline prices and concerns about global warming. The regulations would require the industry to implement more than half of the fuel-efficiency requirements by 2015 and push them to build more gas-electric hybrid cars, diesel-powered trucks and SUVs and advances such as plug-in hybrids and electric vehicles. "These numbers are very challenging. They will stretch the industry to innovate in ways they haven't had to do in the past and will continue to set us on a course to significantly reduce greenhouse gas emissions from new autos," said Charles Territo, a spokesman for the Alliance of Automobile Manufacturers, which represents General Motors Corp., Toyota Motor Corp., Ford Motor Co. and others. Amid rising gasoline prices and concerns of global warming, Congress sought the tougher standards, requiring the nation's fleet of new vehicles to increase its efficiency by 10 mpg from its current average of 25 mpg, or a 40 percent increase.[16] Congress sought the tougher standards last year, arguing that an increase in fuel efficiency would help reduce greenhouse gas emissions and the nation's dependence upon imported oil. The law, the first major changes in three decades, requires the nation's fleet of new vehicles to increase its efficiency by 10 mpg from its current average of 25 mpg, or a 40 percent increase.[17] Transportation Department Secretary Mary Peters was making the Earth Day announcement in Washington, responding to a new energy law pushed by Congress last year and signed by President Bush. Congress sought tougher standards requiring the nation's fleet of new vehicles to increase its efficiency by 10 mpg from its current average of 25 mpg, or a 40 percent increase.[18] Transportation Department Secretary Mary Peters is making the Earth Day announcement in Washington. Congress and President Bush approved a new energy law last year requiring the nation's fleet of new vehicles to increase its efficiency by 40%. It's the first major changes to the auto mileage rules in three decades.[19]
WASHINGTON, April 22 (Reuters) - The Bush administration proposed a blueprint on Tuesday for moving the auto industry toward sharply higher mileage standards as a way to reduce U.S. oil consumption and cut greenhouse gasses. With crude at just under $120 per barrel and gasoline prices at another record high this week, the Transportation Department unveiled a plan to require the new fleet on U.S. roads to average nearly 32 miles per gallon by 2015. "This proposal is historically ambitious, yet achievable," Transportation Secretary Mary Peters said in a statement.[20] Charles Territo, a spokesman for the Alliance of Automobile Manufacturers, rejected the idea that the administration was coordinating with the industry. "It's consistent with the federal government's position all along," Territo said, pointing to the EPA's decision in December to deny California's request for a waiver to implement its rules. California officials said there's a reason the industry opposes to its efforts: While the new federal standards would raise fuel economy to 31.6 miles per gallon by 2015, California's rules would require the U.S. vehicle fleet to get 36 miles per gallon by 2015. "This fuel economy plan, while attractive on the surface, is a shameful and unlawful assault on California's landmark vehicle emissions standard," Brown said Tuesday.[21] U.S. Rep. Lee Terry, R-Neb., helped craft the new fuel economy rules. The standards, he said, will save drivers gas money and will lessen America's dependence on foreign oil. "This is good for all Nebraskans," Terry said in a statement. "It gives consumers what they want and need, more miles per gallon without sacrificing car size." Dick Boyd, chairman of the Nebraska Sierra Club chapter, said the standards are a positive step, but they should take effect much sooner. He noted that states such as California have pushed for even greater fuel efficiency. "These standards, if they were implemented today, would be good because of the high cost of fuel," Boyd said.[22]
Agency officials believe the law passed last year - which mandated an increase in fuel economy to 35 miles per gallon by 2020 - reinforced the department's power. "It's the belief of the department that by legislating national fuel economy standards that Congress wants national fuel economy standards," said Brian Turmail, a Transportation Department spokesman. That view rankles California officials, who noted that during the debate last fall, California Sen. Dianne Feinstein and House Speaker Nancy Pelosi, D-San Francisco, won assurances that the bill would be neutral on the question of whether California and other states could proceed with their own rules.[21] Pelosi, who pushed the fuel economy bill through the House, praised the Transportation Department for taking the first step of implementing the new federal rules. She chastised the agency for trying to undermine tougher state regulations. "Despite two federal court rulings and Congress' decision to reject the administration's position that enacted energy legislation should preempt the authority of states to regulate greenhouse gas vehicle emissions, the administration has chosen to trot out the same tired old arguments," she said.[21]
The proposal, announced today, represents the first phase of standards required by Congress in a groundbreaking energy bill passed and signed into law last December. "This rule is the first substantial improvement in fuel economy for both cars and trucks since 1985. That said, the proposal starts off at full speed, but then puts on the brakes," said Jim Kliesch, a senior engineer with UCS's Clean Vehicles Program.[23] Congress mandated a fleetwide combined standard for cars and trucks of 35 miles per gallon by 2020 in last year's energy bill. It left the Bush administration some latitude in determining how, and how fast, automakers must get there. The proposed rule announced Tuesday sets those interim standards.[10] Against the backdrop of Earth Day, the Bush administration proposed vehicle fuel-economy standards more ambitious than the average annual increase needed to reach a goal set by Congress four months ago. They'll likely go nowhere for this lame duck administration. They did sound the starting gun for an all-out effort by lobbyists to wrestle over how industry will reach Congress' mandated fuel-efficiency goal of 35 miles per gallon by model year 2020--a 40% increase over the current 25-mpg standard. Lawmakers set the goal posts, but it's up to the administration--this one or the next--to figure out how to get there.[24]
WASHINGTON (AP) — The next generation of new cars and trucks will need to meet a fleet average of 31.6 miles per gallon by 2015, the Bush administration proposed Tuesday, seeking more fuel-efficient vehicles in the face of high gasoline prices and concerns over global warming.[17] WASHINGTON -- U.S. auto makers must increase the average fuel efficiency of their cars and trucks to 31.6 miles per gallon from today's 25 by 2015 under new rules issued by the Bush administration.[25] WASHINGTON (AP) - The U.S. government plans to release a proposal tomorrow to raise fuel efficiency standards for new cars and trucks. It's a step toward putting the nation's fleet on track to reach 35 miles per gallon by 2020.[19] By 2020, the new energy bill signed by President Bush requires the fleetwide average of new cars and trucks to meet 35 miles per gallon (see U.S. lawmakers reach deal on CAFE standards ).[7] Before that benchmark, the new law also requires new cars and trucks to meet an average of thirty-one point six miles per gallon by 2015. The government has estimated that these new standards will add about six hundred and fifty dollars to the price of cars and nine hundred dollars to the price of a truck.[26]
WASHINGTON (AP) — The Associated Press has learned that the government will require new cars and trucks to achieve an average fuel economy of 31.6 miles per gallon by 2015.[27] Current federal regulations call for average fuel economy across the industry of 25 miles per gallon, which amounts to 27.5 miles per gallon for cars and 22.5 mpg for light trucks.[28] For the 2007 model year, cars sold in the U.S. averaged 31.3 mpg and light trucks averaged 23.1 mpg. Keep in mind that these numbers reflect a complex equation that takes a car or truck's "footprint" into account. Based on this equation, DOT says, Porsche will have to average 41.3 mpg by 2015 without buying another manufacturer's credits, or paying a gas guzzler tax (unless it can by then count the fuel economy of every Volkswagen AG model sold in the U.S.), whereas newly independent Jaguar/Land Rover will have a lower number to achieve for cars, because Jaguars make a larger "footprint." This is to prevent an automaker from simply switching to small cars.[14] On the light-truck side, Toyota has to average 28 mpg by 2015, Ford 28.8 mpg and GM 27.4 mpg. Automakers and lawmakers offered muted praised for the new proposed regulation, though they acknowledged it would be difficult to meet the new standards beginning in the 2011 model year. Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers, the trade group representing Detroit's Big Three, Toyota, Daimler AG and five other automakers, said "this tough nationwide proposed fuel economy increase will be good for both consumers and energy security." Other automakers agreed, or said they were studying the proposal.[8] The program allows automakers to apply credits earned from exceeding passenger car fleet requirements to the light-truck fleet. It also allows less efficient automakers to buy credits from more efficient automakers. Automakers aren't likely to offer much criticism of the new proposal because they face pressure from California and 16 other states that want permission from the Environmental Protection Agency to impose their own tougher standards that would increase passenger car fuel economy to 43.7 mpg by 2016.[4] The increase in fuel economy requirements for passenger cars is the first since Congress created the Corporate Average Fuel Economy program in 1975, when in the wake of the Arab oil embargo it ordered automakers to boost fuel efficiency from 13 mpg to 27.5 mpg over a decade. Automakers have outstripped the federal requirements, making it easier in the short run for them to meet the new requirements.[4]
The race to meet 35-mpg CAFE standards officially started today as the Department of Transportation laid out the first five-year plan to boost nationwide fleet fuel economy. The DOT said today that from 2011 to 2015, the Corporate Average Fuel Economy (CAFE) for both passenger cars and trucks would rise 4.5 percent each year.[29] The energy bill requires the Department of Transportation's National Highway Traffic Safety Administration (NHTSA) to set fuel economy standards so the fleet average reaches at least 35 mpg in 2020, and requires NHTSA to make consistent progress towards that minimum starting in 2011.[12] If fuel economy improvements continue at the pace the proposal sets for 2014 and 2015, the U.S. fleet would achieve a little more than a 34.5 mpg average by 2020. The energy bill requires the DOT, through its National Highway Traffic Safety Administration (NHTSA), to set "maximum feasible" standards above the 35 mpg minimum if they are deemed achievable.[23]
The Energy Department said gas prices hit a new record national average Monday of $3.51 a gallon, up 12 cents over the last week. Congress ordered NHTSA as part of the 2007 Energy Independence and Security Act bill to set yearly requirements to reach an industrywide, fleet average of at least 35 mpg for both passenger cars and light trucks. [4] The overall fleet of new passenger cars and light trucks will have to average 31.8 mpg by 2015 -- an annual increase of 4.6 percent per year and above the 4 percent figure Congress required. That compares to the fleet's overall average of 26.7 mpg in the 2007 model year.[4]
For passenger cars, the changes would save 18.7 billion gallons of fuel with a benefit of $31 billion, using the same criteria as for light trucks. The new car standard could cut 178 million metric tons of carbon dioxide emissions over the lifetime of vehicles during those model years.[13] The information is in anticipation of obtaining statutory authority to reform the passenger car CAFE program and to set standards under that structure for model-year 2010-2017 passenger cars, and model-year 2012-2017 light trucks. The agency estimates that the proposed standards will save approximately 18.7 billion gallons of fuel during the lifetime of passenger cars sold during those model years, and approximately 36 billion gallons of fuel for light trucks.[11]
Now, Transportation Secretary Mary Peters is proposing that at the halfway point, the year 2015, vehicles are more than halfway to that final goal. Her more aggressive rule would require an average of 31.5 miles per gallon in 2015, breaking down to 35.7 miles per gallon for passenger cars and 28.6 for light trucks.[30] Transportation Secretary Mary Peters says, by 2015, the nation's fleet of new cars and trucks will have to average 31.6 miles per gallon.[31]
Transportation Secretary Mary Peters outlined the plan on Earth Day, setting a schedule that was more aggressive than initially expected by the auto industry. It responds to a new energy law that requires new cars and trucks, taken as a collective average, to meet 35 mpg by 2020. "This proposal is going to help us all breathe a little easier by reducing carbon dioxide emissions from tailpipes, cutting fuel consumption and making driving a little more affordable," Peters said.[17] Last year, Congress mandated that the industry average for cars and trucks reach 35 mpg by 2025. "All told, this proposal will save nearly 55 billion gallons of fuel over the lifetime of the vehicles affected[28] The plan is expected to save nearly 55 billion gallons of oil and reduce carbon dioxide emissions by 521 million metric tons over the life of the new vehicles built between 2011-2015. It will add an average cost of $650 per passenger car and $979 per truck by 2015. Environmental groups and their allies in Congress, who have criticized the Bush administration's handling of the requirements, said they were mostly encouraged by the proposal.[17] In a move that it says will save drivers more than $100 billion in fuel costs, the Bush administration today unveiled its plan for boosting the mileage of the nation's passenger cars, minivans, and sport utility vehicles to an average 35 miles per gallon by 2020, up from about 25 mpg today.[1]
The cost for complying with the standard for cars would be about $16 billion, though consumers would recoup higher vehicle prices in about 56 months through reduced fuel use, NHTSA said. That analysis assumes prices from $2.26 per gallon in 2016 to $2.51 per gallon in 2030. The same costs would be $31 billion for light trucks, with a 50-month payback, NHTSA said.[13] The standards also will add several hundred dollars to the cost of vehicles. A survey conducted by Cars.com and released Tuesday found that 85 percent of those polled would buy more fuel-efficient vehicles if gas reached and stayed around $4 per gallon. More than 70 percent said they hoped to get at least 30 miles per gallon out of a new vehicle. Gas prices have set records in both Nebraska and Iowa in the past week.[22]
"Pain at the pump is growing more acute each day as gas prices continue to skyrocket. These new rules will put us on the path toward lower energy costs and greater energy independence.'' Crude oil rose to a record $119.90 a barrel in New York today as the dollar dropped to an all-time low against the euro, and the average price of a gallon of regular gasoline at U.S. filling stations rose to $3.47 this week, according to oil- industry analyst Trilby Lundberg. Automakers including General Motors Corp., the world's largest, and Toyota Motor Corp. issued statements saying they're working to meet the federal goal of 35 mpg by 2020.[13] The world's biggest automaker for now said that "GM intends to meet the tough, new national CAFE standards of 35 mpg for cars and trucks combined by 2020, a dramatic increase of 40 percent. NHTSA'''s proposed rule lays out the first set of standards toward this target. GM will work with NHTSA throughout its rulemaking process on the yearly targets and the sensible mechanisms needed to meet this challenge.'''[29] For light trucks, including SUVs, the rules would increase fuel efficiency from 23.5 mpg in 2010 to 28.6 in 2015. Automakers could earn credits for cars that exceed minimum standards that they could then apply to cars that fell short. Peters said such a credit swap would allow automakers the flexibility to meet fuel efficiency goals '''without compromising their economic vitality.''' After a period for public comment, te standards are expected to be finalized by the end of the year, she said.[6] The new rules call for a 25 percent increase in fuel efficiency standards over 5 years for passenger vehicles and light trucks.[7]
Last year Congress required that automakers increase the industry-wide fuel efficiency to 35 mpg by 2020. The new rules would not interfere with those standards, but they would cause most of the increase to occur by 2015.[6]
Because less than 7 percent of cars on the road are new, it will take a while for the average fuel efficiency of all cars on the road to increase significantly, said Troy Green, a spokesman for AAA, a lobbying group for motorists. '''With increasing average fuel economy standards, changes don'''t happen overnight,''' he said.[6] April 22 (Bloomberg) -- Fuel economy for cars and light trucks in the U.S. would increase 4.5 percent annually in the five years ending in 2015 under new guidelines intended to curb carbon emissions and gasoline consumption.[13] When Unocal ran a vehicle retirement program in California in the 1990s, people were writing checks and asking the company to "Scrap one for me." The White House said that by 2015, carmakers must increase the corporate average fuel economy of their fleets from the current 27.5 mpg for cars and 22.5 mpg for light trucks to 35.7 mpg and 28.6 mpg, respectively. That will save a lot fuel, but not right away.[32]
Today's proposed rule covers model years 2011 through 2015. It calls for fleet average fuel economy to improve to 27.8 mpg in 2011, 29.2 mpg in 2012, and 30.5 mpg in 2013. Those improvements represent an average increase of 1.5 mpg per year.[23] Rep. Edward Markey, D-Mass. helped write the new Corporate Average Fuel Economy, or CAFE, law. He praised the DOT's proposed rule as "aggressive" in a Tuesday statement. "After years of fighting a fuel-economy increase, the Bush administration is showing faith in the American auto industry's ability to reform," he said.[10] WASHINGTON, DC - April 22 - The Bush administration's new proposal for vehicle model years 2011 through 2015 would significantly boost fuel economy for the first three years, but then require only meager improvements for the remaining two, setting a pace that could undermine efforts to reach the goal of a 35 miles-per-gallon (mpg) fleetwide average by 2020, according to the Union of Concerned Scientists (UCS).[23] In April 2006, NHTSA ordered light-truck fuel economy to increase from 21.6 mpg to 24 mpg by model year 2012. Automakers have said they will take different steps to meet the new requirements.[4] The industry has resisted CAFE increases, especially during the cheap gas-big SUV era of the late '90s and early '00s, and now it looks like the bill has come due. More recent tax laws gave small business owners a writeoff if they purchased trucks and SUVs like the Hummer H2 too heavy for Environmental Protection Agency to be subject to mpg measurements. While those days appear to be over, NHTSA's arcane "footprint" formula doesn't outlaw big cars; it requires that automakers find a way (likely at high costs) to build large cars with significantly better fuel economy.[14]
Transportation Secretary Mary Peters, who announced the proposed rules Tuesday, acknowledged to reporters that the preemption language was included in the document. The National Highway Traffic Safety Administration has fiercely defended its role as the only government entity with the authority to set fuel economy standards for cars and trucks.[21] WASHINGTON, April 22 (UPI) -- The U.S. government has proposed increasing fuel economy standards to require that cars average 35.7 miles per gallon, officials said.[33] The updated standards mean that fuel economy for cars will increase from the current 27.5 miles per gallon to 35.7 miles per gallon by 2015.[15] For passenger cars, the proposal would increase fuel economy from the current 27.5 miles (44 kilometers) per gallon (3.8 liters) to 35.7 miles (57.4 kilometers) per gallon by 2015.[2]
The combined standard of 31.6 miles per gallon represents a 25% increase over current federal fuel-economy standards, and is more aggressive than required by last year's law setting fuel-economy targets for 2020. "This proposal will help us all breathe a little easier by reducing carbon dioxide emissions from tailpipes, cutting fuel consumption and making driving a little more affordable," Transportation Secretary Mary E. Peters said in an announcement timed to coincide with Earth Day.[10] The standards are tougher than the 3.3 percent annual increase Congress passed last year in the Energy Independence and Security Act. '''This proposal will'''help us all breathe a little easier by reducing carbon dioxide emissions from tailpipes, cutting fuel consumption and making driving a little more affordable,''' said Secretary of Transportation Mary Peters.[6]
Against a backdrop of green trees and vehicles designed to be greener the government ordered automakers to improve gas mileage 25 percent by 2015. Department of Transportation Secretary Mary Peters said, "This proposal will also help us all breathe a little easier by reducing carbon dioxide emissions from tailpipes, cutting fuel consumption and making driving a little more affordable." There was plenty of green symbolism on this Earth Day 2008.[34] The federal plan calls for a 4.5% annual increase from 2011 to 2015. If those increases are achieved, Transportation Department officials said automakers would need to increase fuel economy by only about 2.1% a year from 2016 to 2020. "It's aggressive but achievable," Transportation Secretary Mary Peters said.[35]
The proposal issued by the U.S. Transportation Department on Tuesday would require a fleetwide fuel-economy increase of 25% on vehicles made from model year 2011 to 2015. This would put automakers more than halfway toward Congress' goal by the middle of the next decade--for a total cost of $16 billion for cars and $31 billion for trucks.[24] The bulk of the costs come at the end of the proposal, with the auto industry spending $4.8 billion on passenger cars increases and $8.7 billion for light trucks in model year 2015.[8] The 417-page proposal also confirms a Detroit News report today that it will cost automakers $47 billion to comply, including $31 billion for light trucks and $16 billion for passenger cars through 2015.[8] The proposal will add nearly $1,000 to the price of building light trucks and hundreds of dollars to the average cost of new passenger cars, people briefed on the program said.[4]
NHTSA also stated that it estimates that compliance will cost automakers approximately US$16 billion for passenger cars and US$31 billion for light trucks to meet the proposed standards.[11] The proposed standards "will require increased use of innovative technologies,'' Senator Carl Levin, a Michigan Democrat, said in an e-mailed statement. "This makes it more important than ever that there is significant federal support for development of these technologies, such as advanced batteries for plug-in hybrid vehicles.'' NHTSA estimates the higher mileage rule for light trucks would save 36 billion gallons of fuel over the lifetime of the models sold during those years.[13] Department of Transportation (DOT) officials say the rule does not assume any significant sales of plug-in hybrid cars by the 2015 model year, which flies in the face of General Motors' plans, and so NHTSA is asking for an update on automakers' progress on plug-ins. It also assumes diesel power will make up 4 percent of the car fleet and 10 percent of the light truck fleet in seven years.[14] In the 2007 model year, automakers averaged 31.3 mpg for passenger cars, far above the 27.5 mpg requirement, and 23.1 mpg for light trucks, above the 22.2 mpg mandate. Light trucks account for more than half of all sales in the United States, though they declined 2.3 percent in 2007 and dropped 12.1 percent in the first three months of 2008, while car sales were down only 3.1 percent.[4] In the 2011 model year, automakers would be required to post the biggest jump to 27.8 mpg, up 2.5 mpg over the 2010 model year requirements. That equates to 31.2 mpg for passenger cars and 25 mpg for light trucks.[8]
The truck standard, at 22.5 mpg, is up slightly more than 10 percent since 1992. Giving credit The new energy law allows automakers to carry credits forward for five model years and to trade credits between their car and truck fleets and among companies. There is no indication that any automaker is interested in the latter feature.[36] Granted, the proposal sets standards for the next five model years at a slightly higher rate than the new energy law essentially requires - about 4.5 percent per year for the combined car and truck fleets, as opposed to the 4 percent that would satisfy the law.[37]
Last year's landmark energy bill directed the Department of Transportation (DOT) to set standards requiring consistent progress toward a 35-mpg minimum fleet average for new cars and trucks by 2020.[23] The new Energy Law presented by the Transportation Department requires new cars and trucks to achieve an average of thirty-five miles per gallon by the year 2020.[26]
The new federal fuel rules will raise the average efficiency of cars, trucks, sport utility vehicles and vans from 25 miles per gallon to about 32 miles per gallon by 2015 and to 35 miles per gallon for cars and trucks by 2020.[22] Under the DOT rule, Porsche would have to meet a fleetwide standard of 41.3 miles per gallon by 2015 for passenger cars, while BMW faces a 37.7 mpg requirement. That compares with the 35.7 mpg average for all passenger car manufacturers. Chrysler must meet a 33.6 mpg standard for passengers by 2015, the lowest, or least fuel-efficient, among Detroit's Big Three.[10] The new proposal requires automakers to meet a minimum standard of 31.6 miles per gallon for all cars and trucks by 2015.[15]
Keep in mind that the administration is following the mandate of Congress, which caved in to automaker pressure and set a weak target of 35 miles per gallon (mpg) by 2020 for the combined fleets, which is far less than automakers could and should be achieving. The 31.6 mpg that the combined fleets must reach by 2015 under the new proposal is just more proof that these targets are insufficient. Other countries already have set targets that exceed the U.S. 2020 goal - Japan requires more than 35 mpg by 2010; the European Union is ramping up to as much as 52 mpg by 2012; and even China will require 38 mpg for 2008.[37]
Environmentalists praised the NHTSA proposal, but suggested the new administration should revisit the increase planned for the later years -- since it also only assumes that gas prices will average $2.25 per gallon in 2015 and $2.36 per gallon, far below today's retail averages.[8] When calculating the benefits of fuel economy standards, the UCS report assumed a $2.61 per gallon price for gasoline, the average price over the past three years.[12] Why not something similar on the national level? We would expect gasoline use to fall - lowering emissions, just as happened in California - as the fleet got younger and the average fuel economy increased. The first cars that should be scrapped are those made prior to 1978, the inaugural year of Washington's Corporate Average Fuel Economy (CAFE) standards. To get them off the road as soon as possible, the compensation should be bigger than that which might be handed out for cars built from 1978 to, say, 1988, a reasonable cutoff date that will move ahead one year every January. Such a program would be voluntary.But it's important to remove from the fleet the old gas guzzlers.[32] The increased standards would also address climate change by reducing tailpipe emissions of CO2, which NHTSA said represents 97 per cent of the total greenhouse gas emissions from motor vehicles. As standards can only be established for a maximum of five model years at a time, this would bring the 2015 U.S. average to about 31.6 U.S. mpg (approximately 7.6 L/100 km), with cars averaging 35.7 U.S. mpg (approximately 6.7 L/100 km) and trucks averaging 28.6 U.S. mpg (approximately 8.3 L/100 km).[11] New cars and trucks will have to go farther on a gallon of gas. Those higher fuel standards will save drivers money at the pump in coming years, even though they are likely to raise the cost of new vehicles.[22] Peters said cars produced under the new standards are expected to save America's drivers over $100 billion in fuel costs and conserve almost 55 billion gallons of fuel.[15]
The price of gasoline ratcheted up 12 cents in the last week to an all-time high of $3.51 per gallon. For a discussion of the disputed cost of improving fuel efficiency: How the Energy Bill Will Change the Car You Drive and How They Can Squeeze More Miles From the Gallon.[1] New fuel efficiency standards signed into law in December require an improvement of 10 miles per gallon between 2010 and 2020.[30]
By 2015, the nation's fleet of new cars and trucks will have to average 31.6 miles per gallon. Automobile manufacturers say the numbers are challenging but that they put the industry on course to "significantly reduce greenhouse gas emissions."[38] WASHINGTON (AP) — The nation's fleet of new cars and trucks will be required to achieve 31.6 miles per gallon by 2015, the Bush administration said Tuesday.[16]
Under the proposed rule, the mandate for passenger cars ramps up rapidly in the first three years, from 27.5 miles per gallon in 2010 to 34 in 2013. It then tapers off during the final two years by adding less than 1 mile per gallon a year. That scheduled partly reflects the fact that the fleet of passenger cars is already well above 27.5 miles per gallon, as sales of hybrids and other fuel- efficient cars have grown in recent years.[10] The rule for cars would rise to a national average of 35.7 miles (59 kilometers) per gallon from the current 27.5 average required of each company, the Department of Transportation said in a statement.[13]
Light trucks would have to average 23.5 miles per gallon by 2010 and 28.6 by 2015, and cars would have to average 27.5 by 2010 and 35.7 by 2015. Manufacturers would be able to receive credits for exceeding the efficiency targets and trade them among companies.[5] Trucks would see average fuel economy rise from 23.5 miles per gallon to 28.6 miles per gallon by the end of the five-year phase.[29] When NHTSA boosted light truck fuel economy in 2006, it assumed gas prices would average an inflation-adjusted $2.46, about $1 below current prices.[4] NHTSA's proposal also addresses California's vehicle global warming pollution regulations. Unfortunately, NHTSA is repeating deeply flawed legal arguments limiting states' rights to protect their citizens, according to UCS experts. They pointed out that decisions by the Supreme Court and two separate district courts have rejected NHTSA's arguments and made it clear that EPA's authority to regulate greenhouse gases under the Clean Air Act is separate and distinct from NHTSA's authority to set fuel economy standards. UCS maintains it is inappropriate for NHTSA to go beyond its authority, challenge the court decisions, and parrot the auto industry's discredited legal arguments. Instead of standing in the way of progress, UCS says the administration should grant the waiver to California and allow the states to implement their standards.[23] Automakers and dealers are lobbying hard to maintain the administration's ban on state-by-state rules governing greenhouse gas emissions. The industry says such rules in effect would create a unique fuel economy standard for each state.[36] Agency officials wrote that the new fuel economy standards had "increased the conflict" between state regulations and federal law. They added: "A conflict between state and federal law arises when compliance with both federal and state regulations is a physical impossibility or when state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress." The agency said it is considering adding language to its final rule stating that "any state regulation regulating tailpipe carbon dioxide emissions from automobiles is expressly preempted" under federal law.[21]
Peters said the federal plan would reduce fuel consumption "in a way that is consistent nationwide and also doesn't compromise vehicle safety." Buried inside the 417-page proposal is a section that would prevent states, such as California, from regulating tailpipe fuel economy standards. California Attorney General Jerry Brown said the provisions were a "covert assault" on his state's efforts to reduce greenhouse gas emissions. He vowed to "fight it every step of the way and we will sue them if necessary."[17]
A new federal energy law mandates the rise in fuel economy standards to a combined 35 mpg by 2020 for cars and trucks--about 40 percent higher than today.[36] Washington, D.C. (AHN) - Faced with a new set of fuel economy standards announced Tuesday afternoon, automakers will now have to keep a closer an eye on efficiency when it comes to designing cars in the future.[15] Unlike the current Corporate Average Fuel Economy program that's forced all automakers to meet minimum standards since the 1970s, the new mileage program sets a national average.[13] An Earth Day announcement from the U.S. Department of Transportation has sped up the timeclock for automakers to comply with the Corporate Average Fuel Economy, or CAFE, standards laid out in the energy bill signed into law in January.[7] Eli Hopson, Washington representative for UCS's Clean Vehicles program, said the proposed rule falls short of the requirements in the energy bill. "Congress enacted higher fuel economy standards because people are feeling pain at the pump," he said. "This rule shows initial promise, but doesn't do enough and fails to live up to Congress's intent."[23] In 2008, there are 24 models for sale, and I think you'll see that number continue to grow each year." There's also an incentive in the energy law for automakers to exceed the CAFE standards, giving them a chance to earn credits, although environmental and consumer groups have expressed concern that vehicle manufacturers would use a credit trading system in lieu of increasing fuel economy.[7]
"Raising fuel economy is generally associated with increases in vehicle costs," said Jerry Roussel, Ford Motor Company's manager of energy, environment and safety. Ford Motor Co. is evaluating the Transportation Department proposal to determine the costs, he said.[39] WASHINGTON -- The Transportation Department on Tuesday proposed a timetable for auto manufacturers to meet landmark new fuel economy standards, calling the schedule "historically ambitious yet achievable."[5] The Supreme Court ruled in the Massachusetts vs. EPA case last year that the Transportation Department's authority to set fuel economy standards should not impede other efforts under the Clean Air Act to reduce greenhouse gases.[21]
California traditionally has had special authority under the Clean Air Act to set limits on air pollutants that are tougher than federal standards. A federal judge in Vermont ruled in September that the state rules do not conflict with federal mileage standards, and a Fresno court in December found that both California and the EPA are empowered to set limits on vehicle emissions. In its new document, the Transportation Department said, "We respectfully disagree with the two district court rulings" and noted that an appeal has been filed by automakers.[21] In determining the rules' costs and benefits, the Transportation Department assumes the price of gas will average about $2.86 a gallon between 2011 and 2015, compared with today's record prices of more than $3.50 a gallon. Efforts by several states to implement their own rules to curb gasoline consumption have been stymied by the Environmental Protection Agency, which in December declared that California hadn't demonstrated "compelling and extraordinary" conditions that would warrant allowing it to act independently of the federal government. Auto makers -- including Detroit's Big Three and most major foreign rivals -- cheered the EPA's decision and recently stepped up a lobbying effort aimed at dissuading state governments from regulating tailpipe greenhouse-gas emissions. They argue that divergent state laws could damage manufacturers and cost jobs.[25]
Rising gasoline prices are putting the squeeze on drivers' wallets, jumping to an average $3.50 a gallon at filling stations across the country. Under the rules, each of the major auto makers has a different target for cars and trucks, based on its future product plans. General Motors Corp.' s projected target for its light-truck fleet, for example, is 27.4 mpg in 2015, while Honda Motor Co. will have to meet a 29.6 mpg target in 2015.[25] The fleet of new passenger cars is currently required to meet a 27.5 mpg average, while sport utility vehicles, pickup trucks and vans must hit a target of 22.5 mpg.[16] A new energy law requires the fleet wide average of new cars and trucks to meet 35 mpg by 2020.[27] The plan responds to a new energy law pushed by Congress and signed by President Bush that requires the nation's new cars and trucks, taken as a collective average, to meet 35 mpg by 2020.[16]
The proposal sets a more aggressive timetable than what Congress required when it passed an energy bill in December that calls for an industry fleet average of 35 mpg by 2020 for cars and trucks combined.[4] The energy bill signed by President George W. Bush in December requires that the fleets of individual automakers average 35 mpg by 2020, a 40 percent increase over today's standard.[20]
The regulations mark the first phase of implementing new standards passed by Congress in the energy bill last December. "After years of delay, we can't afford to waste this opportunity to cut our dependence on oil, curb global warming pollution, and save consumers money at the pump," said report author Jim Kliesch, a senior engineer at UCS. "Congress set a floor of a 35-mile-per-gallon fleetwide average by 2020, but gave a green light to stronger standards as long as they're feasible and cost effective.[12]
Peters said the administration wants to set an aggressive pace in the early years covered by the law, to start saving fuel faster. Compliance will be easier because many automakers--including the Detroit 3--have accumulated credits for exceeding previous standards, particularly with their cars, a top NHTSA official told Automotive News.[36] The standards I set when I was administrator of the National Highway Traffic Safety Administration (NHTSA) applied equally to all automakers: When the car standard was 27.5 mpg, for example, that standard applied to each automaker. These new standards are set on a complex sliding scale that will result in each automaker having its own individual target, creating an unadministrable mess.[37]
The Bush administration today proposed tough fuel efficiency standards for automakers, who responded by cautioning that the price to consumers for new vehicles is likely to increase.[39] SAN FRANCISCO (MarketWatch) -- The U.S. Department of Transportation announced Tuesday tougher fuel efficiency standards for new cars and trucks, calling it an achievable move to reduce the nation's growing dependence on foreign oil and cut tailpipe emissions.[9] Associated Press - April 21, 2008 8:24 PM ET WASHINGTON (AP) - The U.S. government plans to release a proposal tomorrow to raise fuel efficiency standards for new cars and trucks[19]
Loy Todd, head of the Nebraska New Car & Truck Dealers Association, said fuel efficiency is only one factor for people looking to buy new vehicles.[22]
"We will not compromise safety in pursuit of fuel efficiency," Peters said. "And with this rule, we do not have to." As her announcement came to a close, Peters pointed toward the line of hybrid cars parked behind her and suggested that these fuel-efficient vehicles used by the Department of Transportation pointed to the future for automakers. "Looking at these vehicles, it is easy to see a not-too-distant future when cars fueled by something other than gasoline will be readily available and affordable," Peters said.[15] UCS's analysis also found that loopholes in the fuel economy law actually will lead to much lower fuel economy levels than the Department of Transportation claims. The flex-fuel loophole allows automakers to meet as much as 1.2 mpg of their requirements through 2014 and 1.0 mpg in 2015 by selling vehicles that can run on ethanol. Once they are on the road, nearly all flex-fuel vehicles run on conventional gasoline.[23] The increase, the first for all light vehicles since 1975, results in total fuel economy that's 25 percent higher than current standards.[13] The Bush administration wants automakers to get a running start on a congressionally mandated 40 percent increase in fuel economy standards by 2020.[36] "After years of fighting a fuel economy increase, the Bush administration is showing faith in the American auto industry's ability to reform," said Rep. Ed Markey, a Massachusetts Democrat who is chairman of the House Select Committee on Energy Independence and Global Warming.[25] NHTSA estimated in December 2006 that a 40 percent increase in fuel economy requirements could cost the industry $114 billion over 10 years, including $85 billion for the Big Three.[4] What the NHTSA rule does that automakers won't like is force fuel economy gains -- nearly 4.6 percent per year -- early within the 12-year period leading to the 35-mpg rule.[14] Under the proposal, automakers are expected to improve fuel economy on a fleet-wide basis by an average of 4.5 percent annually over the next five years.[15] In 2014 and 2015, fuel economy improvements under the proposal would slip to an average of 0.55 mpg per year, clocking in at 31 mpg and 31.6 mpg.[23] The proposed requirement would represent an average fuel economy improvement of 4.5% per year. That is more than the 3.3% annual increase called for under last year's law.[10]
According to UCS's report, NHTSA could set cost-effective fleet average fuel economy standards nearing 40 mpg by 2020, a target achievable even without hybrid technology.[12] With a modest 25% hybrid market share in 2020, a fleet average fuel economy of 42 mpg could be achieved, while increased sales of fuel-efficient hybrids could lift the average even higher, the UCS said.[12] When hybrid technology is included in the analysis, the fleet could achieve a cost-effective fuel economy average of 42 mpg by 2020, leading to a 2015 target of 34 mpg.[23]
The 2020 goal is based on an outdated 2002 National Academy of the Sciences study, which estimated that automakers could make a 10 mpg jump in fuel economy in 10 years - and that was without hybrids and other new technologies.[37] Democrats have said the new fuel economy requirements will save drivers $700 to $1,000 a year in fuel costs.[22] Democrats have said the fuel economy requirements will save motorists $700 to $1,000 a year in fuel costs and reduce oil demand by 1.1 million barrels a day when the more fuel-efficient vehicles are in wide use on the road.[16]
General Motors Corp. has said it will have to build many more hybrid vehicles and by 2020 will add $6,000 to the price of a vehicle. Ford Motor Co. said in its annual report it "plans to increase the fuel economy of its vehicles through the deployment of various fuel-saving technologies, some of which have been announced publicly, and through a shift in its fleet mix toward smaller and lighter vehicles."[4]
When fully implemented, the CAFE standards are expected to result in a minimum 40 percent increase in fuel economy standards and a 30 percent reduction in greenhouse gas emissions through 2020.[7] The language showed that beneath the bipartisan veneer of support for new fuel economy standards - approved by Congress and signed by President Bush in December - the conflict is still raging between the White House and the states over who will set the nation's first limits on greenhouse gases.[21] The proposal will set fuel economy standards from 2011 to 2015 and is expected to be finalized before the end of the Bush administration.[18] WASHINGTON, DC - April 22 - Just because the new proposed rule on fuel economy announced today - Earth Day - is better than expected from the Bush administration, don't start dancing in the streets just yet.[37] '''Strong new rules for fuel economy couldn'''t come at a better time,''' said Ann Mesnikoff, a spokeswoman for the Sierra Club. '''These new rules will put us on the path toward lower energy costs and greater energy independence,''' she said.[6] "Strong new rules for fuel economy couldn't come at a better time,'' Ann Mesnikoff, Washington representative for the environmental group Sierra Club, said in an interview today.[13]
Tuesday, the U.S. Government celebrated Earth Day by announcing new fuel economy requirements for cars and trucks.[26] A mere 10% of the country's almost 140 million privately owned cars and light-duty trucks account for more than half the auto pollution. It's safe to say that most of those polluters also have poor fuel economy. Removing 14 million low-mileage vehicles and replacing them with higher-mileage cars would effectively cut fuel demand.[32]
The proposal also reforms the way fuel economy numbers are set for passenger cars.[4] The proposal calls for the average fuel efficiency for passenger cars to increase from 27.5 mpg to 35.7 by 2015.[6] In 2015, passenger cars will need to achieve 35.7 mpg and trucks will need to reach 28.6 mpg. The rules were designed to push companies to boost fuel efficiency across their entire lineup.[17]
Cars and light trucks would have to be 25% more fuel efficient by 2015 under a proposed rule announced Tuesday by the Transportation Department.[35] Instead of one overall number, the proposal sets a series of requirements based on the size, or attributes of the car. It's not clear how the attributes will be defined or how the system will differ from a similar reform of light truck fuel rules in 2006. "Our guys are going to do it, but it's not going to be easy," said Mike Stanton, who heads the Association of International Automobile Manufacturers, a trade group that represents Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., among others.[4]
Legislation approved in December requires NHTSA to set rules for each type of vehicle in an automaker's fleet based on size, weight and other characteristics. GM, Ford Motor Co. and Chrysler LLC, reliant on trucks for a larger portion of U.S. sales than Toyota and Honda Motor Co., for example, will initially be able to meet the fuel-economy rules by selling more vehicles capable of running on so-called biofuels such as gasoline blended with as much as 85 percent ethanol. Such "flex-fuel'' vehicles, while less fuel-efficient than those powered only by gasoline, receive federal credits that artificially inflate their official average mileage.[13] A U.S. official who spoke on condition of anonymity ahead of the announcement said new cars and trucks will need to meet a fleet wide average of 31.6 mpg by 2015.[27] New cars and trucks will have to meet a fleetwide average of 31.6 mpg by 2015, or about a 4.5 percent annual increase from 2011 to 2015.[16]
Automakers opposed increases to the regulation in previous years, but supported a compromise version of the legislation amid rising gasoline prices and concerns about global warming. The new law is expected to push the auto industry to build more gas-electric hybrid cars, trucks and SUVs running on diesel and advances such as plug-in hybrids and electric vehicles.[18] Automakers opposed increases to the regulations in previous years, but supported a compromise version of the legislation in Congress. The changes would require the industry to implement more than half of the fuel-efficiency requirements by 2015 and push them to build more gas-electric hybrid cars and diesel-powered trucks and SUVs.[17]
The proposed regulation would require the industry to meet a target of 31.5 mpg by 2015. It would force automakers to speed up their development of lighter, more fuel efficient cars and trucks.[40]
General Motors Corp. said the company "intends to meet the tough new national CAFE standards of 35 mpg for cars and trucks combined by 2020. GM will work with NHTSA through out it the rulemaking process on the yearly targets and the sensible mechanisms needed to meet this challenge."[8] A group of states, led by California, want to require auto makers to achieve the equivalent of 35.7 mpg by 2016; the Energy Independence and Security Act of 2007 doesn't require new motor vehicles to meet a standard of 35 mpg until 2020.[25]
The measure shifts fuel-economy requirements to a national average, replacing the system in place since the 1970s that set single standards for all manufacturers. Under the new system, each company will have to meet different requirements depending on its model lineup. "This proposal is historically ambitious, yet achievable,'' Transportation Secretary Mary Peters said in a statement.[13] The proposed regulations would raise the fuel efficiency of automobiles 25 percent between 2011 and 2015. "This proposal is historically ambitious, yet achievable," said U.S. Transportation Secretary Mary Peters. "It will help us all breathe a little easier by reducing tailpipe emissions, cutting fuel consumption and making driving a little more affordable."[39]
The next administration will be in charge of implementing the plan. The Department of Transportation says the proposal will save 19 billion gallons of fuel and cut carbon dioxide tailpipe emissions by 178 million metric tons for cars made during those model years.[24] The Department of Transportation said the new rules would save nearly 55 billion gallons of fuel and cause a reduction in carbon dioxide emissions estimated at 521 million metric tons.[7] The DOT estimates the new rules will save nearly 55 billion gallons of fuel consumed by vehicles, but did not supply a dollar amount for the toll extracted on the auto industry, which is struggling with the weakest sales year in more than a decade.[29]
The transportation agency said the standards released today would save U.S. drivers over $100 billion in fuel costs over the lifetime of the vehicles covered by the rule.[7] The 2015 standards will save consumers an estimated $100 billion in fuel costs, by saving 55 billion gallons of gas, while removing an estimated 521 million metric tons of carbon dioxide emissions.[30] Peters said Americans will conserve 55 billion gallons of fuel during the lifetime of vehicles covered by the regulation, saving $100 billion. She also said the proposal would reduce 521 million metric tons of carbon dioxide, a greenhouse gas.[8] Peters said at a press conference that the improved fuel economy will save 55 billion gallons over the life of vehicles sold between 2010 and 2015.[10] Peters said the plan would save nearly 55 billion gallons of fuel over the lifetime of the vehicles affected and exceeds current Federal fuel efficiency targets.[9]
Peters said the new proposal will save nearly 55 billion gallons of fuel and a reduction in carbon dioxide emissions estimated at 521 million metric tonnes.[2] Peters estimated the proposal would save 55 billion gallons of fuel and cut tailpipe emissions by 521 million metric tons.[20]
The Transportation Department says the new mileage standards will save an estimated 55 billion gallons in fuel.[34] The Detroit News reported the proposal by the Transportation Department would also require light trucks to 28.6 mpg by 2015.[33] Among the current fleet, passenger cars average about 31.3 mpg while light trucks get about 23.1 mpg.[17] The expected result by 2015 would be cars that must average 35.7 mpg and light trucks that must average 28.6 mpg, for a combined 31.6 mpg.[36]
All are well under DOT's average for all makers of light trucks of 31.6 mpg. Auto makers called the rule tough, but said they will comply. "Four and a half percent over this period is very aggressive," said Edward Cohen, vice president of government relations at Honda North America. "This is requiring two to three times the normal technology improvement than what we have historically had."[10] The rules are the first step toward meeting a congressional mandate that U.S. cars and trucks average 35 mpg by 2020.[25] Meeting the final rule is expected to add an average cost of $650 to cars and $979 to trucks by 2015 a cost that automakers are expected to pass on to consumers.[35]
With soaring gas prices and global-warming concerns, automakers have been resigned to big increases in the fuel-efficiency standards. They favor the plan's separate standards for different-size cars rather than a single average for an entire fleet of cars and trucks.[35] The proposal would require each automaker's car fleet to achieve an average of 35.7 mpg by the 2015 model year.[35] The final two years bring the smallest increase -- just 0.5 mpg in model year 2014 and 0.6 mpg in 2015. Manufacturers will have to meet different overall requirements, based on the footprint, or size, of their vehicle fleets. Porsche, for example, will have to average 41.3 mpg by the 2015 model year, while Chrysler will have to meet just 33.6 mpg by 2015, based on product plans submitted to NHTSA.[8] Based on confidential product plans, NHTSA said it expects 4 percent of the 2015 model year car fleet and 10 percent of the truck fleet will have diesel engines. NHTSA said it expect hybrids to account for 5 percent of overall passenger car sales, but it says one manufacturer plans to produce 14 percent of its passenger cars as hybrids by the 2015 model year.[8]
The California state standards are significantly stronger than what is being proposed today by NHTSA, according to UCS analysis, achieving a 30 percent greater reduction in global warming pollution for model year 2015. "The Bush administration hijacked its own rulemaking to deliver another slap in the face to states' rights," said Hopson. "The administration should respect the rule of law and allow states to protect their citizens from global warming."[23] The rules unveiled on Tuesday must be made final by next April 1 so that the industry has 18 months of lead time for the official start of the 2011 model year. Peters said her department's goal is to complete the new rules by year end.[36]
Are you telling me that the best we can do in the next twelve years is to set a new 35mpg cafe standard. That's the best we can do? What we really need are some tough law makers that force the auto industry to stop making gasoline cars altogether! None of us needs 300+ HP and we should already be implementing HP restrictions at the same time we force these auto giants to bring already available technology to the market place! Once again, big oil dictates policy and we all suffer.[14]
Diridon says the new standards will accelerate electric and hybrid technology and manufacturing. Many of those cars already meet or exceed future fuel efficiency goals.[30] "But if you're a farmer, hauling a bale of hay in a Smart car isn't an option. Or if you're a family of four or five. you have to balance those needs." Environmental groups and some members of Congress have pushed for higher fuel efficiency standards, arguing that such a move would help reduce greenhouse gas emissions by reducing oil consumption.[22]
"Our goal is to save fuel, not endanger jobs," Peters said. "These credits allow us to do just that." Though affordability and efficiency seem to represent the core these new standards, the new regulations also seek to improve the environment by reducing greenhouse gas emissions--something Peters said was a commitment of the Bush Administration.[15] The new proposal gives automakers the opportunity to earn credits for exceeding the federally regulated standards. As required by Congress, Peters said these credits would give automakers an incentive to become even more efficient than expected, "while giving manufacturers flexibility to meet the standards without compromising their economic vitality."[15] The Secretary said the new proposal would help Americans "breathe a little easier by reducing carbon dioxide emissions from tailpipes," and that it is estimated the proposal would reduce carbon dioxide emissions by 521 metric tons before 2015. Despite the rigorous standards laid out in her speech, Peters said all of the goals would be based on individual vehicle attributes including size and weight.[15]
Secretary of Transportation Mary Peters is calling the new fuel economy proposal "ambitious, but achievable."[37] "What we were looking for was a balance between affordability and achieving the right levels of fuel economy," Transportation Secretary Mary Peters said.[5]
Peters confirmed there will be different fuel economy targets for vehicles of different sizes--measured by vehicle footprint, the area bounded by four wheels. Such a system will require some improvement in all vehicles.[36]
Last December, Congress passed and President Bush signed into law an energy bill that included the first mandated increase in the corporate average fuel economy program, or CAFE, since it began in 1975.[36] The energy bill approved by Congress doubled fines for automaker that don't meet fuel economy requirements.[8]
Environmentalists said the rule falls short of the "maximum achievable" fuel economy Congress required. "Automakers today have technology sitting on their shelves that could cost-effectively improve fuel economy," said Jim Kliesch, senior engineer with the Union of Concerned Scientists.[10] Federal officials said the rules include language aimed at pre-empting state efforts to regulate fuel economy.[36]
The standards represent the most significant fuel economy changes in 30 years.[22] By law, NHTSA must further strengthen the standards if it determines that higher, "maximum feasible" fuel economy levels are achievable.[12] Raise the taxes on gas to pay for mass transit systems.then let the consumers decide the fuel economy standards.[29]
The "ambitious" proposal, in the DOT's words, would represent a 25-percent improvement in fuel economy provided automakers will meet the targets.[29] According to UCS, NHTSA's analysis underlying today's proposal makes several flawed assumptions that undermine potential fuel economy gains.[23]
A UCS analysis, which calculated cost-effective fuel economy improvements using only conventional technology, concluded that the fleet could achieve 39 mpg by 2020.[23] About two-thirds of the fuel economy gains required by law to be achieved in 10 years will be set in the first five years.[37] Industry executives attribute the government's aggressive approach to fuel economy to a convergence of concerns about climate change, fears about oil supplies and anxiety over high gasoline prices.[36] "I don't see a trend toward smaller cars. What I do see, in large part, is people upgrading for fuel economy," he said.[22] In a fuel economy rulemaking released in 2006, for example, the agency assumed gasoline costs that significantly underestimated consumer savings, Kliesch pointed out. It placed a monetary value of reduced global warming pollution at zero, suggesting that there are no economic benefits to avoiding the worst consequences of climate change.[12] "Automakers today have technology sitting on their shelves that could cost-effectively improve fuel economy," said Kliesch.[23]
The standards reflect the average fuel efficiency of an automaker's fleet, rather than for individual models.[5] Under the proposal, automakers would have to speed up the timetable for achieving an average fuel-efficiency standard of 35 miles per gallon by 2020.[35] The NHTSA could lay the groundwork for a new vehicle fleetwide average of more than 50 miles per gallon by 2030, according to a new report from the Union of Concerned Scientists (UCS).[12] "In the old days, size (and) performance would drive sales." Hinchcliff said his customers generally are buying comparable-size vehicles to what they trade in. Customers, he said, will trade in an old pickup truck for a new one that gets at least three or four miles more per gallon.[22]
For light trucks, the proposal calls for increases from 23.5 miles per gallon in 2010 to 28.6 miles per gallon in 2015.[2] The Union of Concerned Scientists raised concerns that the increase in annual targets tapers off to less than 1 mile per gallon in the final years. "What we have today is a horse charging out of the gate that pulls up lame a third of the way around the track," said Jim Kliesch, senior engineer in the nonprofit's clean vehicles program.[5]
The legislation's centerpiece was a boost in the minimum fuel-efficiency standard to 35 miles per gallon by 2020 for new auto fleets.[5] Trucks are expected to hit 23.5 miles per gallon by 2010 and achieve a minimum standard of 28.6 miles per gallon by 2015.[15]
NHTSA assumed an average price of $2.86 per gallon of gasoline. That figure, based on a Department of Energy estimate, assumes a leveling-off and decrease of gas prices from current levels.[10] Previous NHTSA analyses used overly conservative Energy Information Administration gasoline price forecasts of $1.96 per gallon to $2.16 per gallon through 2030. This week the average price of regular gasoline surpassed $3.40 across the country, and experts are predicting prices as high as $4 per gallon this summer.[12]
NHTSA did that calculation under the assumption that gasoline will be a lot cheaper than it is today; the agency estimated a range of $2.26 per gallon in 2016 to $2.51 per gallon in 2030.[1]
In the 1990s, California launched a voluntary vehicle retirement program. In some air quality management districts, owners of older, gross-polluting cars are paid cash to scrap them. The state also pays out $1,000 to low-income car owners who would rather scrap their vehicles than pay for the repairs required to pass the state's smog test. Gross polluters caught by remote sensing devices are also offered $1,000 for their cars. The average age of the cars retired in these local programs is 18 years. They are replaced with cars that are, on average, 10 years old, one year older than the average of the state's fleet. [32] The company considers a 4.5 percent annual increase "quite aggressive," said Ed Cohen, vice president for government and industry relations at Honda North America Inc. Various fleet averages Some automakers must meet higher fleet averages than others, depending on their vehicle offerings.[36] Even Honda and Volkswagen, traditionally the automakers with the highest fleet averages, will have to show technology improvements to get better fuel mileage from Fits and Golfs. Because of their mix of vehicles, Ford Motor Company will have to reach higher numbers than Toyota/Lexus/Scion. Those are eye-opening numbers, because it means, on the face of it, that the average Toyota has a bigger "footprint" than the average Ford.[14]
In keeping with the new law, however, automakers will continue to receive a 1.2 mpg credit for producing flexible fuel vehicles which run on ethanol blends, but the credit will begin phasing out in 2014.[17] Jim Kliesch, a senior engineer for the Union of Concerned Scientists' Clean Vehicles Program, said automakers could easily reach 39 mpg by 2020 and that the new proposal would "leave us stuck in second gear."[35] Jim Kliesch, a senior engineer with the Union of Concerned Scientists clean vehicles program, said the proposal is a substantial improvement but doesn't go far enough. "That said, the proposal starts off at full speed, but then puts on the brakes," Kliesch said. NHTSA's proposal said the varying increases are because of "uneven distribution of new model introductions during this period and to the fact that significant technological changes can be most readily made in conjunction with those introductions," NHTSA said.[8]
NHTSA was required to set the "maximum feasible" yearly standards. The agency sent its proposal to the White House in February for approval and several federal agencies including the EPA offered comments on the proposal. NHTSA must have its final proposal in place before the end of March to take effect for the 2011 model year, since automakers get 18 months lead time.[4] Anderson said with alternative power sources being explored by automakers, there's a good chance that the new standards will be exceeded in the next 12 years. "I think they'll be in a position to meet all of the requirements and then some," Anderson said of manufacturers.[22] Automakers needing to meet the new standards won't just be working on hybrids, there will still be gasoline cars being rolled out.[7] Automakers have a lot of work to do. A 35mpg fleet standard is going to put a lot of them out of business, mark my words. Isn't this supposed to be a free country? There are cars that meet this standard. That means people can purchase these cars now.[40] The smaller the vehicles in the fleet, the more stringent a fuel-economy standard the manufacturer will have to meet. That puts a larger burden on makers of high-performance sports and luxury cars.[10]
The new standards could reduce U.S. oil imports by 1.1 million barrels a day by 2020, according to Terry's office. Todd said he believes getting less-efficient, older vehicles off the road may do more to help than upping fuel standards. He said some states have considered sales tax and other financial incentives to entice people to buy newer vehicles if they promise to take their older ones off the road. World-Herald staff writer Chet Mullin contributed to this report, which also includes material from the Associated Press.[22] The new fuel standards are in response to an energy law passed last year by Congress and signed by President Bush.[22] WASHINGTON (AP) -- New fuel efficency standards will be increased by more than 4 percent each year from 2011 through 2015.[31]
The group said that last year more than 1.8 million hybrid electric, ethanol capable flexible fuel vehicles and clean diesel vehicles were sold in the U.S., up 15 percent over 2006. This year, more than 70 models of alternative fuel vehicles are available at dealers around the country, according to the alliance.[7]
The fleetwide average doesn't mean that all vehicles have to achieve the target efficiency — larger vehicles will not be as fuel efficient as smaller ones — only that collectively passenger vehicles average that figure.[16] Tal Anderson, chairman of the nine-dealership Performance Automotive Group in Omaha and Lincoln, said the industry already is making vehicles with higher fuel efficiency.[22] Auto industry officials voiced support, saying a significant reduction in greenhouse gas emissions will require a comprehensive approach involving vehicles, fuel and drivers.[6] Roland Hwang, the vehicles policy director for the Natural Resources Defense Council, said the document appeared to be an effort to bolster the legal case of the auto industry. "We fully expect to see this rule being quoted by the automakers in their court cases in trying to overturn the Fresno and Vermont decisions," Hwang said. "It's the same argument we're hearing from the automakers."[21] Several industry officials noted that high gas prices are already pushing manufacturers to make more fuel-efficient vehicles than the government's rules demand.[25]
The new rules arrive against the backdrop of yet another record-high for oil prices, which has trickled down to the pump where gas now goes for $3.51 a gallon, its highest level ever, according to AAA.[28]
Transportation Secretary Mary Peters, speaking at a northern Virginia parking lot crammed with hybrid vehicles on Earth Day, called the new fuel-efficiency rules, which will be administered by the National Highway Traffic Safety Administration, "historically ambitious, yet achievable."[25] Transportation Secretary Mary Peters will unveil the proposed regulation at an Earth Day event in McLean, Va., at a Federal Highway Research facility. Peters will make the announcement against a backdrop of vehicles from the large automakers, including Detroit's Big Three. A source who saw her prepared remarks said Peters plans to call the proposal "ambitious but achievable."[4] Transportation Secretary Mary Peters called the proposal "an aggressive but achievable standard." She announced the plan during an Earth Day event at a Department of Transportation research center in McLean, Virgina.[36] The scheduled Earth Day announcement came from Transportation Secretary Mary Peters, who called the new standards "historically ambitious, yet achievable."[15]
Tucked deep into a 417-page "Notice of Proposed Rulemaking" was language by the Transportation Department stating that more stringent limits on tailpipe emissions embraced by California and 17 other states are "an obstacle to the accomplishment" of the new federal standards and are "expressly and impliedly preempted" by federal law.[21] The 400-page plan proposed on Tuesday by the Transportation Department's National Highway Traffic Safety Administration (NHTSA) sets annual mileage goals for the first five years of the 2020 plan -- 2011-2015.[20]
The proposed regulation from the National Highway Traffic Safety Administration will cost the auto industry an estimated $47 billion to meet the requirements through 2015, the newspaper reported.[33] " said Secretary of Transportation Mary Peters. "And it will save America's drivers over $100 billion in fuel costs over the lifetime of those vehicles."[28]
Keep in mind that the 2007 model number was 31.3 for cars and 23.1 for trucks. (where ever those magic numbers come from) I don't think its too much to ask for automakers to squeeze what they can to get up to the New CAFE. With diesel, hybrid, direct injection gas, VVT, turbochargers, high strength steel, aluminum and composites I think they can easily get there and still make great cars. (the car will only get about 27 mpg in the real world, but it will make CAFE happy) They will cost more, but it's worth it. [14] For 2020, it would represent a target of 35 U.S. mpg (approximately 6.7 L/100 km), an increase of 31 per cent over the 2007 new fleet average.[11] NHTSA said if the 4.5 percent increase continued through 2020, the fleet would average 39.3 mpg by 2020.[8]
The legislation calls for a fleet average of 35 mpg by 2020 for cars and trucks combined.[33] NHTSA estimates it will take consumers on average 56 months to see enough gasoline savings to offset the higher price of the cars and light trucks.[1] Light trucks, which include pickups, SUVs and minivans, would have to meet a 28.6 mpg average by 2015.[35] For light trucks, GM will need to reach 27.4 mpg by 2015, while Ford will have to average 28.8 mpg and Toyota will need to hit 28 mpg.[17]
For light trucks, the standard would rise to 28.6 mpg by 2015, up from the 23.5 mpg target already set for 2010.[9] For light trucks, including sport utility vehicles, the bar is set lowest for General Motors at 27.4 mpg, then Ford at 28.8 mpg, and lastly Chrysler at 29.1 mpg.[10]
The rules do not alter the legal definition of light truck, which critics have said invites game-playing by automakers.[36]
In proposed rules unveiled on Tuesday, the administration is asking car companies to achieve a 25 percent improvement during the 2011-15 model years--in effect, a 4.5 percent compounded annual increase.[36] Under the proposed new rules, credit trading would be permitted beginning with credits earned in the 2011 model year.[7]
General Motors (GM), the world's biggest automaker, said that it intends to comply with the "tough" new rules. "GM will work with throughout its rulemaking process on the yearly targets and the sensible mechanisms needed to meet this challenge," spokesman Greg Martin said in an emailed statement.[28] Automakers were generally silent on the new rules, though GM did issue a press release.[29]
The alliance is the voice in Washington for a range of automakers, including General Motors (nyse: GM - news - people ), Ford Motor (nyse: F - news - people ), Chrysler, Toyota (nyse: TM - news - people ) and Volkswagen's (other-otc: VLKAF.PK - news - people ) U.S. subsidiary. According to Joan Claybrook, a former administrator of the National Highway Traffic Safety Administration and now president of the watchdog group Public Citizen, the proposal has two serious flaws: It's too lax, and it's too complicated, requiring automakers to have individual fuel-economy targets by 2015 instead of an across-the-board goal for that date.[24]
'''Congress has set an aggressive, single, nationwide standard and automakers are prepared to meet that challenge,''' said Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers, an industry trade association.[6] "Congress has set an aggressive, single, nationwide standard and automakers are prepared to meet that challenge," said Dave McCurdy, president of the Alliance of Automobile Manufacturers, which represents General Motors Corp., Toyota Motor Corp., Ford Motor Co. and others.[17]
If adopted the regulations will likely prompt automakers to focus on hybrids and the use of smaller, less powerful engines to meet the increased fuel efficiency requirements. "Our guys are going to do it, but it's not going to be easy," said Mike Stanton, who heads the Association of International Automobile Manufacturers, a trade group that represents Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., among others.[33]
U.S. News also looked at how the political momentum for fuel efficiency improvement became unstoppable in A New Front in the Fuel Fight.[1]
The government estimates that the additional fuel milage will add about $650 to the price of a car and more than $900 to the price of a truck by 2015. [31] I think the CAFE standards are terrific. Too long, the Big Three have been skating along on truck sales and selling the same old crummy car designs from the 1970s while they have stubbornly refused to invest anything in R&D.; Toyota discovered with the Prius that Americans actually WANT fuel efficient cars that can carry four people and still accelerate decently.[14] Tougher fuel standards are good for business. "It's good for everybody. It's not just good for the company. One of the reasons the car sells well is because a lot of people feel they need to do their part, save fuel, save energy, smaller carbon footprint as they say," says Smart Car spokesperson Bill Scott.[30] The department's proposed standards are more aggressive than Congress approved in December as part of an energy bill.[33] "We are analyzing the proposal and remain committed to meeting the requirements set by Congress in last year's energy bill," spokesman Mike Moran said.[8] Rival Ford Motor Co. (F) said: "We are analyzing the proposal and remain committed to meeting the requirements set by Congress in last year's energy bill."[28]
The federal proposal is tougher than the fuel-economy requirements passed by Congress last year, which called for a 3.3% annual increase in gas mileage.[35] The federal proposal ignores last year's Supreme Court ruling "which affirms that gas mileage standards are separate from state greenhouse gas regulations,'' Brown said in an e-mail statement.[13] Amid a continuing debate over how to curb oil consumption, gas prices and greenhouse-gas emissions, California and more than a dozen other states are pushing to adopt regulations that would essentially require fuel-economy improvements faster than legislation Congress approved last year.[25]
Estimates are that more than 54 billion gallons of oil will be saved and emissions will be reduced by 521 million metric tons over the lifetime of cars and trucks built during the four year span.[31] For trucks, the savings would be 36 billion gallons of fuel and 343 million metric tons of CO2 emissions.[24]
The exact fuel economy of the overall fleet in 2015 depends on a number of assumptions. [8] Historically, NHTSA has used cost-benefit analyses to assess maximum feasible fuel economy levels, though in doing so, it incorporated flawed assumptions resulting in erroneous findings, the UCS said.[12] All three presidential candidates have endorsed California's efforts, while Sens. Barack Obama, D-Ill., and Hillary Clinton, D-N.Y., have called for even higher fuel economy requirements.[4]
Chazcar pretty much nailed it, the oil companies have gotten their way all along and continue to do so. Diesel seems like an easy, obvious answer to this CAFE thing and a great temporary solution, but is anyone standing up and telling them to increase diesel output? No! It's all "let's get everyone out of their Camaros and Bimmers and into these hybrid 3 cylinder sub-sub-subcompacts!" "Let's get 100mpg by 2030!" That's the mentality of these types. We can have both performance and economy, and even some trucks, if we approach the situation as rational human beings. Then again, these are the same people who are constantly coming up with reasons to dismiss ethanol. It seems obvious to me that Big Oil is running the show and has been all along. It's disgusting that our government puts itself up for sale sometimes.[14]
Crude oil futures are now selling for $119 a barrel and quickly approaching the $120 mark, an increase of a $1.89. The average prices in San Francisco, San Jose, and Oakland are all up a fraction this Tuesday.[30] The announcement was timed for Earth Day, a day after average gas prices topped $3.50 a gallon for the first time.[35] Oil set another record Tuesday at $119 a barrel with gas reaching a national average of $3.51 a gallon.[38]
The bill required NHTSA to set yearly requirements in order to meet a combined industry wide average of 35 mpg by 2020.[8] The measure provides a framework for implementing legislation signed by President George W. Bush in December requiring vehicles to meet an average of 35 mpg by 2020.[13] The current law requires automakers to meet an average 35 mpg between 2011 and 2020.[40]
The proposal is the first regulatory step on the road to an overall fleet average of at least 35 mpg by 2020 and achieves more than half of that target.[4] The Environmental Protection Agency has concluded the fleet average could reach 35 mpg by 2018. (For the UCS analysis, go to: http://ucsusa.org/news/press_release/new-report-says-major-gains-po-0110.html.)[23]
In order to reach 35 mpg by 2020, it only would need to average 2.1 percent increases between 2016 and 2020.[8]
Among individual manufacturers, passenger cars built in 2015 by General Motors will need to average 34.7 mpg, Ford's cars will need to reach 35.5 mpg and Toyota's cars will have to achieve 34.6 mpg.[17] A 2002 report by the National Academy of Sciences estimated that making cars smaller to meet fuel-economy averages in the 1980s had led to up to 2,000 more car-crash deaths a year.[35] Under the plan, the smallest cars will have to meet the highest fuel-economy targets. That will reduce any incentive for automakers to sell more small cars to lower their overall averages.[35]
Car and Driver has a test this month of cars that can meet or nearly meet the new CAFE standard.[40] The new regulation means that car makers would have to meet more than half of that savings in the first half of the phase-in period.[40]
Gas prices are out of control and rising. Most Americans have no choice but to drive to get to work, buy groceries, take their kids to school and perform the basic tasks of everyday living. This new proposal is not the aggressive, forward-looking policy that consumers need, and it is years behind. [37] Peters says the proposal is "an agressive but achievable standard." An automobile manufacturers spokesman says the numbers are "very challenging" but they also put the industry on a course to "significantly reduce greenhouse gas emissions."[31] Today's announcement will be followed by a 60-day public comment period and the proposal could be substantially rewritten before it is finalized. He expects the auto industry to pressure the administration to weaken the rule.[23] Jim Kliesch, a senior engineer with the Union of Concerned Scientists, gave mixed reviews to the plan, arguing that the first three years would push the industry, but the following two years would only seek modest increases. "The proposal starts off at full speed, but then puts on the brakes," he said.[17]
The pace of the increase is somewhat faster than was mandated in last year's big energy bill.[25]
If finalized, the proposed increases will force dramatic changes in automakers' vehicle lineups, with a greater focus on hybrids and diesels and wider use of smaller, less powerful engines to meet the requirements. [4] Peters toured a display of vehicles with fuel-saving technology produced by seven automakers: the Detroit 3, Toyota, Honda, Nissan and Hyundai. Automakers say they accept higher standards but may dispute some details of achieving them.[36] All three of the remaining presidential candidates have expressed support for California's efforts, and the two leading Democratic candidates would like to see vehicle fuel-efficiency standards raised well above 35 mpg over time.[25] Had NHTSA assumed a higher price of gasoline, it would have showed more potential benefit in the form of savings at the pump, and thus led to a more stringent standard. "It's really the best information that we have to rely on," said Ron Medford, senior associate administrator for vehicle safety at the National Highway Traffic Safety Administration.[10] The NHTSA standards were set using a cost-benefit analysis that weighed the cost burden on manufacturers against benefits to consumers, the largest of which is savings from having to purchase less gasoline.[10]
At $1,500 each, getting rid of 14 million cars would cost taxpayers $21 billion.[32] Costs passed on to consumers would be "paid back" in fuel savings, the proposal says.[24] "The new fuel-economy plan is promising because it may save fuel without compromising the safety of motorists," said John Graham, a former official at the Office of Management and Budget who helped develop the new proposal.[35]
U.S. registrations of new hybrid vehicles rose 38% in 2007 to a record 350,289, according to data to be released today by R.L. Polk & Co., a Southfield-based automotive marketing and research company. Hybrids made up just 2.2% of the U.S. market share for the year, but they were growing steadily even as overall sales declined 3%, according to Polk.[12] New standards will be increased by more than 4% each year from 2011 through 2015.[38] The ink is barely dry on the new CAFE standard, yet the Department of Transportation is expected to announce today that it is accelerating the timetable for the new mileage standard.[40] Transportation Department Secretary Mary Peters outlined the plan on Earth Day, setting a schedule that was more aggressive than initially expected by industry officials.[16] In a speech Tuesday, U.S. Transportation Secretary Mary Peters said the proposal is "ambitious, but achievable."[24]
Peters said the attribute-based approach allows automakers to reduce fuel consumption without sacrificing safety.[15] Peters said the plan had been adopted with car companies' product plans and technologies in mind. Automakers were cautious in their responses, while environmental groups said they wanted rulemakers to go further.[35]
Manufacturers will have different requirements for cars and trucks of different sizes based on vehicle sales. [17] The Alliance of Automobile Manufacturers is a trade association of 10 car and light truck manufacturers, including the Big Three ''' Chrysler, Ford Motor (NYSE: F ) and General Motors (NYSE: GM ).[7]
With fewer old cars on the road and more cars nearer the average age, emissions are reduced. [32] California Attorney General Jerry Brown, who is suing federal regulators to grant the state a waiver to implement more aggressive greenhouse gas rules, said the standards fall short in cutting emissions and would undermine the state's efforts.[13] Members of Congress and environmental groups have pushed for higher standards, arguing that requiring vehicles to become more efficient would help reduce greenhouse gas emissions and the nation's dependence upon imported oil.[16] According to the department, tailpipe emissions from motor vehicles represent 97 percent of the total greenhouse gas emissions from vehicles.[7]
The Bush administration has opposed attempts by California and other states to implement a strict program to reduce vehicle tailpipe emissions.[17]
An automaker cannot comply with tougher standards simply by building more small vehicles.[36] Because of the flex-fuel loophole alone, UCS's analysis indicates that the 2015 proposed standard is likely to lead -- at best -- to a 30.6 mpg fleetwide average.[23] The combined 31.6 mpg standard, up from about 25 mpg under the old requirement, would get the fleet more than halfway to the 2020 goal by 2015.[10]
Many new product projects have been put on hold. Early this year, General Motors announced it had cancelled its $3-billion Ultra V-8 program, a replacement for Cadillac's Northstar V-8. [14] In Nebraska, the average price of a gallon of regular gasoline is $3.50.[22]
SOURCES
1. Fuel Efficiency Plan Aims for Big Savings - US News and World Report
2. AFP: US proposes accelerated plan for auto fuel efficiency
3. Government to release fuel efficiency standards proposal
4. Feds: 36 mpg for cars by 2015
5. Government unveils new timetable for fuel economy
6. Medill Reports: DOT proposes fuel efficiency increase of 25 percent by 2015
7. Accelerated CAFE standards unveiled | Cleantech.com
8. Feds unveil details of sweeping new fuel mileage plan
9. Transportation Dept. raises auto fuel efficiency standards - MarketWatch
10. UPDATE: Auto Makers Must Improve Fuel Economy By 25% By 2015
11. CanadianDriver: Automotive news » Blog Archive » NHTSA proposes increase in fuel economy standards
12. 50 MPG Achievable Under New CAFE Standards - Report
13. Bloomberg.com: Worldwide
14. Ambitious. Achievable? Interim CAFE 32 mpg by 2015 | Government Blog at Motor Trend
15. U.S. Transportation Chief Calls New Fuel Efficiency Standards "Ambitious, Yet Achievable" | April 23, 2008 | AHN
16. The Associated Press: Government to release proposed fuel economy rules
17. The Associated Press: Government to release proposed fuel economy rules
18. The Associated Press: Government to release proposed fuel economy rules
19. WLNS TV 6 Lansing Jackson Michigan News and Weather - WLNS.COM | Government to release proposed fuel economy rules on Earth Day
20. UPDATE 1-US DOT wants autos to average nearly 32 mpg by 2015 | Deals | Regulatory News | Reuters
21. Bush fuel-economy rules called an 'assault' on states' standards
22. Omaha.com Business Section
23. Union of Concerned Scientists: New Fuel Economy Proposal Starts Strong, Then Puts on the Brakes
24. What Do Bush's New Fuel Standards Mean? - Forbes.com
25. Auto Fuel-Efficiency Goals Raised - WSJ.com
26. Government Announces Enviromentally Conscious Policy - WVUA 7 Tuscaloosa
27. The Associated Press: US to release proposed fuel economy rules
28. UPDATE: New Rules Aim To Accelerate Fuel Efficiency
29. TCC Blog » Blog Archive » Brace For Impact: First Step to 35 MPG Announced
30. abc7news.com: Auto fuel economy on the rise 4/22/08
31. KGAN :: CBS 2
32. Today in Investor's Business Daily stock analysis and business news
33. Accelerated fuel standards announced - UPI.com
34. EARTH DAY: Government Tells Automakers To Improve Gas Mileage By 25 Percent By 2015 | Breaking News, Weather, Sports and Entertainment for Georgia and South Carolina | Business
35. Higher fuel standards proposed by feds - USATODAY.com
36. Feds demand fast start on higher CAFE - AutoWeek Magazine
37. Public Citizen: Modest Fuel Economy Increase Is Little Cause for Earth Day Revelry
38. Gas prices "like a tax on our working people" | NECN
39. Automakers: Higher MPG drives up cost - - Breaking News, Political News & National Security News - The Washington Times
40. Feds Poised to Accelerate CAFE Standard | Autopia from Wired.com
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