Tough New Fuel Economy Standards
Obama's new standards could require a gas tax to get consumers to buy more efficient cars.
Kevin Bullis 05/19/2009
- 9 Comments
Today President Obama announced a new plan for increasing fuel economy standards. It will speed up an earlier plan established by Congress that would have required vehicles to have an average fuel economy of 35 miles per gallon by 2020. The new plan will require a slightly higher standard of 35.5 miles per gallon, and the standard must be met much earlier, by 2016.
In his announcement, Obama said:
[I]n the next five years, we're seeking to raise fuel-economy standards to an industry average of 35.5 miles per gallon in 2016, an increase of more than eight miles per gallon per vehicle. That's an unprecedented change, exceeding the demands of Congress and meeting the most stringent requirements sought by many of the environmental advocates represented here today.
As a result, we will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years. Just to give you a sense of magnitude, that's more oil than we imported last year from Saudi Arabia, Venezuela, Libya, and Nigeria combined.
According to the Wall Street Journal, "new passenger cars sold in the U.S. will have to meet an average mileage requirement of 39 mpg, up from 27.5 mpg currently. Light trucks would have to deliver an average of 30 mpg, compared with about 23 mpg today."
The plan doesn't give automakers much time. Only a few cars--hybrids--meet these standards today, and it can take 5 years to develop a new car. The good news is that technology exists to achieve these standards, and automakers are already planning on rolling out much of it. That includes lightweight materials, direct-injection engines paired with turbochargers, and various types of hybrids, including plug-in hybrids and electric vehicles. But ramping up production will take time. Also, convincing consumers to buy enough of the most fuel efficient cars to make up for other people buying larger cars will be difficult. Gas taxes have helped meet a similar fuel economy standard in Europe. A proposed system of government fees and rebates could also help, and might be more palatable to consumers than raising gas prices.
Here's a more in-depth analysis of the issues involved, based on an earlier Obama plan.



devassocx
111 Comments
Draconian Fuel Stds...
Nice to see that in addition to bankers that the
gov't is also expert in vehicle specifications.
Cost increase estimates for a new vehicle are more than $1300. You can bet it will be much more
than that when the time comes.
Add to that the increased complexity of the vehicle which means more costly maintenance and the use of lighter, much more expensive materials and you have the recipe for a continually stressed auto industry.
And the very poor, those who barely now can afford an old used car will be forced to pay more for their fuel...I fail to see any social justice there. I suppose you could rip off those who are further up the economic ladder and subsidize those lower down but is that what America has come to? Has it's free enterprize system become a government mandated wealth transfer system?
If you love your post office, the social security
and medicare programs then you will love this
latest government intrusion.
Score:
Government: 1
Car Companies: 0
Public: 0
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