White House Sets Final Fuel Economy Standards Through 2025
The 54.5-mpg industry average includes provisions for hybrid pickups, EVs, and small automakers like Rolls-Royce.
The White House today released its final rules mandating all new cars and trucks to reach a 54.5-mpg fleet average by 2025.
The rules for updating the Corporate Average Fuel Economy standards -- which each automaker's model lineup is required to meet -- are essentially identical to a 2011 draft issued by the Environnental Protection Agency and the National Highway Traffic Safety Administration.
However, unlike when the Obama administration first proposed increasing CAFE to 62 mpg, a significant number of automakers now support the new standards. The new mandate establishes higher yearly increases starting in 2017 and finishing with 54.5 mpg in 2025. By 2016, automakers have to meet an average of 35.5 mpg.
EPA administrator Lisa Jackson said on a conference call that the new rules “call for steady improvements, not radical overnight changes.” The U.S. would save $1.7 billion in fuel costs and reduce oil consumption by 12 billion barrels through 2025, Jackson said.
But while gasoline and diesel consumption have been cut considerably -- between 2006 and 2011, fuel stations sold about 35 percent less fuel -- it's unclear if CAFE rules are actually attributable to such massive savings. More so, the U.S. continues to use foreign oil at breakneck pace (since 2000, the U.S. has imported more than 4 billion gallons of crude every year) and while the trends show slight decreases, it's still a large challenge as alternative fuels like ethanol and natural gas remain grounded and fast-charging EV networks are non-existent.
The federal pressure, however, will force automakers to build large pickup trucks that average 33 mpg and full-size cars, with the EPA using the Chrysler 300 as one example, to meet 48 mpg. Such figures all but state the necessity of equipping today's vehicles with electric and hybrid powertrains.
Future 2025 model-year vehicles would save buyers an estimated $8,000 per vehicle in fuel costs over their lifetimes when compared to 2010 models. The EPA did not take into account what the price of fuel would be in 2025, but the White House said the savings are the equivalent of dropping the price of gasoline by $1 per gallon.
However, not all cars are treated the same way. Under CAFE, each automaker has a certain amount of EPA credits to meet regarding its overall fuel economy. Manufacturers can sell excess credits to other manufacturers, or buy credits in lieu of a less efficient fleet. Other automakers, such as Mercedes-Benz, have paid the EPA millions of dollars in fines for not meeting the quotas. While the credit-swapping program remains in place, automakers will gain additional credits for selling electric, plug-in hybrids, natural gas, and fuel cell vehicles. Hybrid pickup trucks are also worth more credits under the new program.
Small automakers like Rolls-Royce that sell less than 5,000 cars per year will be able to petition the EPA directly on a “case-by-case basis” for their own standards. Automakers that sell between 5,000 and 50,000 vehicles are allowed to meet lower fuel efficiency standards but must meet the higher goals in by 2021. Trucks like the Ford F-150 will be allowed more time than cars to meet the higher standards.
According to transportation secretary Ray LaHood, the changes required to make cars more fuel efficient will increase the average cost of new cars by at least $1,800. The new rules are expected to cost as much as $192 billion, according to federal estimates. But the cost savings have some government officials eager to propose mileage taxes -- such as the GPS-tracking measure proposed by California Bay Area cities in July -- to offset declines in fuel tax revenues. In 2009, LaHood suggested a national mileage tax, but the White House shot down that idea almost immediately.
I would like to know how many gas or hybrid American model cars currently get 54.4 mpg? I can't think of any. I know the Toyota priu**** the number but this is the only car I can think of. Why doesn't Obama endorse 40mpg as this number may be possible for a fleet average for American cars. 54.4 mpg seems impossible to me and would only hurt US manufacturing jobs. Or how about keeping Big brother out of what cars we drive.
Electric and hydro cars will be the norm when the technology to make them viable AND affordable alternatives becomes available. Just wishing it so does not make it so.
As a car person, I think this is a bunch of b.s. The truck I drive has an 8.1L V8 engine, and I have no problem reaching 20 mpg on the highway, and I feel safe driving it. I don't see where the economy of a vehicle matters, it will need fuel at some point.
We can make vehicles that get great fuel economy, but they will be costly in other areas. For example, a hybrid won't use as much gas as a full gasoline vehicle would, but the batteries are very expensive. Another example is with the diesel vehicles, they will reach 50+ mpg, but they are more expensive to maintain. With these vehicles, we won't be saving any money.
If it is the environment we want to protect, electric isn't going to help anything. When the batteries go bad, where are we going to put them, we can recycle some of them, but what about the new ones? Where are we going to put them? If we look to use diesel as a main fuel in automobiles, it won't help the environment, because the oil from a diesel engines is very dirty when it is changed.
This is how I view it, sorry if you don't agree.
WHAT A LOAD OF ****!!!!! Every election year someone comes out with new improved fuel standards
and than after the elections the changes never come whoever in office changes the time limit for the
GD auto makers ( after all that's why they give all the money with the understanding that itt will never come to pass!)
The Pres changes the time limit even tho its the tax payers who bailed out the auto makers
By the way, Obama said he wants our gas to be as high as Europe's . look up that interview on youtube. Raising the fuel milieage on cars will make this happen. Is this what you want America? How is this helping the middle class that he says he protects? Give Romney a chance. He hasnt done any damage to our nation yet. If he fails his first term, we can vote him out. I do not think he will spend as much as Bush or Obama. Bush spent $655 Billion during his 8 years. I thought that was bad! Obama has spent over a $5 Trillion so far and his first term isn't up. This is scary!!! No president has ever spent this much. Our dollar is going to be worthless pieces of paper soon if we dont do something. Blaming Bush isn't helping anything. Giving Obama a second term wont help anything. Romney is our only hope at this time. I wish we had some more options, but we don't. He is our only chance.
I agree with the person who pointed out that less volume means higher prices for fuel per unit. The lion's share of oil company funds are divided among the type of people who don't lose their jobs (execs) and share holders. When volume drops and those costs remain the same or increase, they must be offset by higher prices per unit sold to cover the bills that do not drop when volume decreases.
Another thing to consider is that virtually everything you eat or wear or purchase from some store relies on truckers to deliver the merchandise. It will be some time before large vehicles can operate on batteries alone. The price of fuel will impact everything you need in life. When delivery costs rise, the cost of goods increases. It is a fact of life.
Most people ignorantly assume the oil companies would be opposed to these changes. That is far from the truth.
Oil is a finite commodity. There is only so much inventory in the ground. If the oil companies are to sustain their survival then they must find a way to make the oil supply last longer. Sell less for more per unit and you will make the same or more money and continue to make money longer. After all, you can't just plant an oil seed and wait for it to grow and produce more oil.
Has anyone looked at the cost of the batteries used to power a vehicle? Do you really think that paying for less gasoline will reduce the overall cost of operating a vehicle. Not a chance. Also, has anyone looked at the cost in terms of energy and pollution that go into the entire lifecycle of these monster batteries used to power vehicles without gasoline?
I see this as a move to help make individual transportation more of a possession only for the rich and elite. The middle class and poor will suffer. When the rich use up a new electric car's battery they will dump it on the used market and the middle class and poor who can not afford a new vehicle will then end up having to find ways to replace the costly batteries. Instead of dealing with a little money per week for higher gasoline prices they will be forced to do without personal transportation or to shell out large and unexpected amounts of money to replace the batteries in the used vehicle.
The ripples from moves like this are far reaching and never ending. Transportation is an integral part of the lives of each and every person who does not live in the woods whether or not that person owns a personal vehicle.
This is a move by the wealthy for the wealthy and nothing more.
They sell it with emotional tools like the high cost of gas supposedly becoming less influential in your daily existence so that the average man and woman will not vote against these measures or act out against the government but it is the same old game.
Meet the new boss, same as the old boss.
Your life will become ever worse as money gravitates to the top faster.
Looks like the smart move here would be to find ways to invest in mass transit tools.
Anybody know what time the bus will be here?
CAN ANYBODY EXPLAIN HOW (ACCORDING TO THE ARTICLE) IF WE WILL SAVE $1.7
BILLION THRU 2025 BUT IT WILL COST $192 BILLION THIS MAKES ANY SENSE. MAYBE
IT IS THE NEW MATH.
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