Obama rolls out national fuel efficiency policy

U.S. President Barack Obama announced a new national fuel efficiency policy last week that will including stricter federal emission and mileage standards for automobiles. This new policy covers model years 2012-2016, with 2016 requiring an average fuel efficiency standard of 35.5 mpg (or 15km/litre). This will force automakers to produce cars and light trucks that are 40% cleaner and more efficient than current models (the current average is 25 mpg) by 2016.

In comparison, under current federal law called the 2007 CAFE (Corporate Average Fuel Economy) law, passed by the Bush administration in 2007 but never enforced as regulations were never set, cars with the fuel efficiency of 35 mpg were not to be rolled out until 2020. Obama remarked that these new standards will save 1.8 billion barrels of oil over the lifetime of the vehicles that are sold over the next 5 years (equivalent to taking 58 million cars off the road or closing 194 coal plants).

This policy closes the potential gaps between state and federal requirements, ultimately resolving outstanding conflicts and lawsuits over the issue. Automakers previously voiced concern over requirement gaps creating a patchwork of emission standards across states (stemming from a debate over California’s desire to set more stringent policies regarding tailpipe emissions) which could lead to confusion and higher costs for auto manufacturers.

This new fuel efficiency policy is the result of unprecedented collaboration between the U.S. EPA, Department of Transportation, and American auto manufacturers, along with environmental leaders and state governments. This marks a unique alliance between groups that share very different interests. In Obama’s statement, he touches on this important development stating that “it represents not only a change in policy in Washington but the harbinger of a change in the way business is done in Washington…No longer will we accept anything less than a common effort, made in good faith, to solve our toughest problems.”

There is still some who fear among automakers and consumers of the added price (at least $1,000 USD) that these new standards will bring to new vehicles over the next few years. Due to this, it is surprising that protests from Republicans have not been stronger on this issue. However, after last summer’s high gas prices, both Republicans and Democrats are strongly aware of the need to have better fuel efficiency. Most consumers are buying used vehicles within the United States right now due to the economy and new car purchases have strongly decreased. As new vehicles are a luxury at this point perhaps increased prices may not be as much of a concern to consumers or constituents. While I would expect to see increased complaints once the economy turns around and new car buyers face sticker shock, the cost to the environment would have been even greater had such a U.S. fuel efficiency policy not come about.