The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) on Nov. 16 formally unveiled their joint proposal to set stronger fuel economy and greenhouse gas pollution standards for model year 2017-2025 passenger cars and light trucks.
The proposed program for model year 2017-2025 passenger cars and trucks is expected to require increases in fuel efficiency equivalent to 54.5 mpg. The administration says these improvements would save consumers an average of up to $6,600 in fuel costs over the lifetime of a model year 2025 vehicle for a net lifetime savings of $4,400 after factoring in related increases in vehicle cost. Overall, the net benefit to society from this rule would total more than $420 billion over the lifetime of the vehicles sold in model year 2017-2025.
These combined actions also will reduce America’s dependence on oil by an estimated 12 billion barrels, and, by 2025, reduce oil consumption by 2.2 million barrels per day – enough to offset almost a quarter of the current level of our foreign oil imports. Taken together, these actions will also slash 6 billion metric tons in greenhouse gas emissions over the life of the programs.
The proposed standards alone will slash oil consumption by 4 billion barrels and cut 2 billion metric tons of greenhouse gas pollution over the lifetimes of the vehicles sold in those years.
“These unprecedented standards are a remarkable leap forward in improving fuel efficiency, strengthening national security by reducing our dependence on oil, and protecting our climate for generations to come. We expect this program will not only save consumers money, it will ensure automakers have the regulatory certainty they need to make key decisions that create jobs and invest in the future,” said U.S. Transportation Secretary Ray LaHood. “We are pleased that we’ve been able to work with the auto industry, the states, and leaders in the environmental and labor communities to move toward even tougher standards for the second phase of the president’s national program to improve fuel economy and reduce pollution.”
"By setting a course for steady improvements in fuel economy over the long term, the Obama Administration is ensuring that American car buyers have their choice of the most efficient vehicles ever produced in our country. That will save them money, reduce our nation's oil consumption and cut harmful emissions in the air we breathe," said EPA Administrator Lisa P. Jackson. "This is an important addition to the landmark clean cars program that President Obama initiated to establish fuel economy standards more than two years ago. The progress we made with the help of the auto industry, the environmental community, consumer groups and others will be expanded upon in the years to come -- benefitting the health, the environment and the economy for the American people."
This action follows the Obama Administration’s 2012-2016 plan, which will raise fuel efficiency equivalent to 35.5 mpg by 2016 and result in an average light vehicle tailpipe CO2 level of 250 grams per mile. The model year 2017-2025 proposal includes a number of incentive programs to encourage early adoption and introduction of “game changing” advanced technologies.
The new proposal follows President Obama’s announcement in July that the administration and 13 major automakers representing more than 90 percent of all vehicles sold in the U.S. have agreed to build on the first phase of the national vehicle program. EPA and DOT worked closely with a broad range of stakeholders to develop the proposal—including manufacturers, the United Auto Workers, the State of California, and consumer and environmental groups.
There will be an opportunity for the public to comment on the proposal for 60 days after it is published in the Federal Register. In addition, DOT and EPA plan to hold several public hearings around the country to allow further public input. California plans to issue its proposal for model year 2017-2025 vehicle greenhouse gas standards on Dec. 7 and will finalize its standards in January.
More on the NHTSA and EPA’s notice of proposed rulemaking is available at www.nhtsa.gov/fuel-economy.