White House mandates new fuel efficiency standards

White House mandates new fuel efficiency standards
By Juliet Eilperin
Copyright by The Washington Post
Thursday, April 1, 2010; 11:55 AM
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/01/AR2010040101412.html?hpid=topnews


The Obama administration finalized the first national rules curbing greenhouse gas emissions Thursday, mandating that the U.S. car and light-truck fleet reach an average fuel efficiency of 35.5 miles per gallon by 2016.

The new fuel efficiency standards, issued by the Transportation Department and the Environmental Protection Agency as the result of a May 2009 deal with the auto industry, represent a peaceful end to a contentious legal battle over how to regulate tailpipe emissions. At a time when it remains unclear whether Congress can pass climate legislation this year, the new rules also mark the White House's most significant achievement yet in addressing global warming.

In a speech Wednesday, President Obama said the standards "will reduce our dependence on oil while helping folks spend a little less at the pump." He estimated that tougher Corporate Average Fuel Economy (CAFE) requirements will save 1.8 billion barrels of oil over the life of vehicles sold under the program covering the 2012-16 model years. He said this would be the equivalent of taking 58 million cars off the road for a year.

Environmentalists hailed the move, saying it will transform the American auto market in the years to come.

The new CAFE standards move up goals set in a 2007 energy law, which mandated a 35-mpg average by 2020. Passenger cars and light trucks now are required to get an average of 27.5 mpg. As a result of the new rules, the U.S. vehicle fleet is projected to cut its greenhouse gas emissions 21 percent by 2030.

"This is the biggest step the federal government will have ever taken to save oil, cut greenhouse emissions and save consumers money," said David Friedman, research director of the clean vehicles program at the Union of Concerned Scientists.

Gloria Bergquist, vice president at the Alliance of Automobile Manufacturers, said the new requirement "gives us a clear roadmap for future fuel economy increases. We have a hill to climb, and it's steep, so we will need consumers to buy our fuel-efficient technologies in large numbers to meet this new national standard."

She added that since automakers are already designing vehicles "for 2017 and beyond," they hoped the federal government would take the lead in setting the next set of standards, which will take effect once the 2012-16 program ends. "The federal government has gotten a lot of criticism lately, but this is one case where federal leadership has worked by avoiding piecemeal, fragmented policies for autos. That's why we support it."

Canada is adopting identical emission standards for its vehicles.

California pioneered the idea of greenhouse gas limits for vehicles, setting standards in 2004 that were subsequently adopted by 13 other states and the District of Columbia. Automakers challenged the rules in court, and the Bush administration refused to grant California a waiver from the Clean Air Act, effectively blocking the standards from taking effect.

Once Obama took office, the Alliance of Automobile Manufacturers, an advocacy group representing 11 U.S. and foreign automakers, pressed for a deal with the states, labor groups and environmental organizations.

An administration official estimated that the new requirements may increase the average cost of a vehicle by about $1,000, but that the consumer would recoup that payment in three years, largely through fuel savings. Over the life of the vehicle, a vehicle owner would reap a net savings of $3,000.

While tailpipe emissions represent the largest source of greenhouse gas emissions in a car or truck, the coolant in air conditioning also contributes to a vehicle's carbon output.

The Natural Resources Defense Council estimates that in 2020, the new standards will save consumers $65 billion in fuel costs by cutting oil consumption by 1.3 million barrels a day, while also cutting carbon dioxide emissions by more than 220 metric tons that year.