Sunday, September 16, 2012

Administration Finalizes Higher Fuel Efficiency Standards

Sunday, September 16, 2012
New higher fuel efficiency standards are already being reflected in cars like the 2013 Ford Fusion plug-in hybrid that Ford says gets more than the equivalent of 100 MPG.
Credit: Ford Motor Company

The Obama Administration on August 28 finalized standards that will increase fuel economy to the equivalent of 54.5 miles per gallon (mpg) for cars and light-duty trucks by model year 2025. When combined with previous standards set by this administration, this action will nearly double the fuel efficiency of those vehicles compared to new vehicles currently on the road. The move to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels.

The program also includes targeted incentives to encourage early adoption and introduction of advanced technologies to dramatically improve vehicle performance. The program includes incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles, as well as incentives for hybrid and other technologies that can improve the fuel economy of large pickups. The new standards issued by the U.S. Department of Transportation (DOT) and the Environmental Protection Agency (EPA) build on the success of the administration's standards for cars and light trucks for model years 2011-2016. Those standards, which raised average fuel efficiency by 2016 to the equivalent of 35.5 mpg, are already saving families money at the pump.

Achieving the new fuel efficiency standards will encourage innovation and investment in advanced technologies that increase our economic competitiveness and support high-quality domestic jobs in the auto industry. The final standards were developed by DOT's National Highway Traffic Safety Administration (NHTSA) and the EPA, following extensive engagement with automakers, the United Auto Workers, consumer groups, environmental and energy experts, states, and the public. Last year, 13 major automakers, which together account for more than 90% of all vehicles sold in the United States, announced their support for the new standards. See the White House press release and the NHTSA CAFE fuel standards website.

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