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DOT, EPA Propose National Program To Improve Fuel Economy

Interagency program to address climate change and energy security

By James Limbach
ConsumerAffairs.com

September 16, 2009
Transportation Secretary Ray LaHood and Environmental Protection Agency administrator Lisa P. Jackson have proposed establishing a national program designed to improve vehicle fuel economy and reduce greenhouse gases.

The agencies say their proposal would provide coordinated national vehicle fuel efficiency and emissions standards that would conserve billions of barrels of oil, save consumers money at the pump, increase fuel economy, and reduce millions of tons of greenhouse gas emissions.

"American drivers will keep more money in their pockets, put less pollution into the air, and help reduce a dependence on oil that sends billions of dollars out of our economy every year," said Jackson. "By bringing together a broad coalition of stakeholders -- including an unprecedented partnership with American automakers -- we have crafted a path forward that is win-win for our health, our environment, and our economy."

LaHood says the proposed increases in fuel economy and the reductions in greenhouse gases "would bring about a new era in automotive history. These proposed standards would help consumers save money at the gas pump, help the environment, and decrease our dependence on oil -- all while ensuring that consumers still have a full range of vehicle choices."

Under the proposed program, which covers model years 2012 through 2016, auto makers would be able to build a single, light-duty national fleet that satisfies all federal requirements as well as the standards of California and other states.

The proposed program includes miles per gallon requirements under NHTSA's Corporate Average Fuel Economy Standards (CAFE) program and the first-ever national emissions standards under EPA's greenhouse gas program. The collaboration of federal agencies for this proposal also allows for clearer rules for all automakers, instead of three standards (DOT, EPA, and a state standard).

Specifically, the program is designed to:

• Increase fuel economy by approximately five percent every year

• Reduce greenhouse gas emissions by nearly 950 million metric tons

• Save the average car buyer more than $3000 in fuel costs

• Conserve 1.8 billion barrels of oil

Increase Fuel Economy

The proposed national program would require model year 2016 vehicles to meet an estimated combined average emission level of 250 grams of carbon dioxide per mile. Under the proposed program, the overall light-duty vehicle fleet would reach 35.5 miles per gallon (mpg) in model year 2016, if all reductions were made through fuel economy improvements. If this occurs, Congress' fuel economy goal of 35.0 mpg by 2020 will be met four years ahead of schedule. This would surpass the CAFE law passed by Congress in 2007 that required an average fuel economy of 35 mpg in 2020.

Reduce Greenhouse Gases

The proposed standards would require model year 2016 vehicles to meet an estimated combined average emission level of 250 grams of carbon dioxide per mile under EPA's greenhouse gas program. The combined EPA and NHTSA standards would reduce carbon dioxide emissions from the light-duty vehicle fleet by about 21 percent in 2030 over the level that would occur in the absence of any new greenhouse gas or fuel economy standards. The greenhouse gas emission reductions this program would bring about are equivalent to the emissions of 42 million cars.

Save Consumers Money

NHTSA and EPA estimate that U.S. consumers who purchase their vehicle outright would save enough in lower fuel costs over the first three years to offset the increases in vehicle costs. Consumers would save more than $3,000 due to fuel savings over the lifetime of a model year 2016 vehicle.

Conserve Oil

The light-duty vehicles subject to this proposed National Program account for about 40 percent of all U.S. oil consumption. The program will provide important energy security benefits by conserving 1.8 billion barrels of oil, which is twice the amount of oil (crude oil and products) imported in 2008 from the Persian Gulf countries, according to the Department of Energy's Energy Information Administration Office. These standards also provide important energy security benefits as light-duty vehicles account for about 60 percent of transportation oil use.

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