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Administration announces tighter vehicle fuel-economy standards

By Andrew Restuccia - 11/16/11 02:10 PM ET

The White House formally announced tighter fuel-economy standards for cars and small trucks Wednesday, regulations that the administration says will save consumers thousands of dollars at the pump.

Under the proposed regulations — which were jointly developed by the Environmental Protection Agency and the Transportation Department — newer cars and light-duty trucks will need to achieve combined fuel-economy standards of 54.5 miles per gallon by 2025. The regulations apply to model year 2017 to 2025 vehicles.

President Obama first announced the standards, which are the product of months of closed-door talks with the country’s major automakers, in July. The proposed regulations build on similar standards for 2012 to 2016 vehicles that were finalized last year.

“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,” Transportation Secretary Ray LaHood said in a news release. “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.”

The proposed standards will cut the country’s oil consumption by 4 billion barrels and reduce greenhouse gas emissions by 2 billion metric tons. The tighter fuel-economy rules will save consumers $4,400 in fuel costs over the lifetime of a model year 2025 vehicle, the White House said.

Consumers will save $8,000 over the life of a model year 2025 vehicle if other vehicle fuel efficiency regulations are taken into account, the White House said.

Environmental groups — many of which had pushed for a 60 mpg standard — praised the joint fuel efficiency and greenhouse-gas standards Wednesday.

“Today’s announcement is more good news for American consumers, auto manufacturers, public health and the environment,” Environmental Defense Fund President Fred Krupp said in a statement.

“American cars and trucks are, once again, poised to lead the world in technological advances that will benefit us all.”

Natural Resources Defense Council President Frances Beinecke said the standards will cut the country’s dependence on foreign oil.

“By delaying a decision on the Keystone XL pipeline, and moving toward curbing carbon dioxide pollution from new power plants, the president’s initiatives will help wean America from its oil addiction and begin to slow, stop and reverse climate change, and protect our health,” Beinecke said.

The Auto Alliance, a coalition of automobile manufacturers, said Wednesday that the agreement is going in the “right overall direction.”

“This proposal continues the approach of establishing a single national program for fuel economy and greenhouse gas emissions, which is the right overall direction,” Auto Alliance President Mitch Bainwol said in a statement.

“The proposed regulations present aggressive targets, and the Administration must consider that technology break-throughs will be required and consumers will need to buy our most energy-efficient technologies in very large numbers to meet the goals.”

The National Automobile Dealers Association blasted the standards Wednesday.

“This regulation gambles that millions of consumers will be able to afford thousands more for generally smaller, more expensive vehicles that may not meet their needs," the group said in a statement. "This policy is contrary to what most consumers are actually buying today, despite the wide availability of more fuel efficient models. We need fuel economy policies that encourage the sales of fuel efficient vehicles, instead of risky mandates that frustrate consumer demand and depress fleet turnover."

This story was last updated at 2:08p.m.


Source:
http://thehill.com/blogs/e2-wire/e2-wire/193987-administration-unveils-tighter-vehicle-fuel-economy-standards
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