President Barack Obama has announced the government’s next round of fuel standards. The new guidelines call for increasing fuel economy to 54.5 miles per gallon by the model year 2025. The administration’s current agreement calls for a fuel economy standard of 35.5 miles per gallon by 2016.
The President was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, economy, Mazda, Mitsubishi, Nissan, Toyota and Volvo – which together account for over 90 percent of all vehicles sold in the United States – as well as the United Auto Workers (UAW), and the State of California, all who played a part in negotiating this agreement. Obama’s initial 2025 goal was 56.2 miles per gallon.
The administration said that these initiatives, the first new fuel standard agreements in three decades, will save American families $1.7 trillion dollars in fuel costs, and by 2025 result in an average fuel savings of over $8,000 per vehicle. In addition, these new agreements will cut the oil consumed by the United States, saving a total of 12 billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million barrels a day – approximately half the oil we import from OPEC every day.
To promote as well the use of advanced car technologies to help car manufacturers get towards the new laid out goals, federal agencies are “considering a number of incentive programs to encourage early adoption and introduction into the marketplace.” These technologies include electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles.
The standards also curb carbon pollution, cutting more than 6 billion metric tons of greenhouse gas over the life of the program – more than the amount of carbon dioxide emitted by the United States last year. The oil savings, consumer, and environmental benefits of this comprehensive program are detailed in a new report entitled Driving Efficiency: Cutting Costs for Families at the Pump and Slashing Dependence on Oil.