President Obama announces new fuel, emissions rules

President Barack Obama has announced sweeping new fuel efficiency and emissions standards for American vehicles. The proposed standards include the first-ever U.S. government regulation of greenhouse gases and would end the dispute between California and the Environmental Protection Agency.

Speaking at the White House, the President said “Right now, the rules governing fuel economy in this nation are inadequate, uncertain and in flux. We will avoid an inefficient and ineffective system of regulations that govern our automakers.”

If adopted, the new rules would include tough fuel efficiency standards for both passenger cars and light trucks. The proposed regulations call for:

• A new corporate average fuel economy (CAFE) standard of 35.5 miles per gallon by the end of 2016. This would be achieved through a five percent increase in fuel efficiency each year from 2012 through 2016. At that time, passenger cars would have to average 39 mpg and light trucks would need to get 30 miles per gallon. This would cut domestic oil consumption by an estimated 1.8 billion barrels over the life of the program.

• A reduction in greenhouse gas emissions of a projected 900 million metric tons. This is partially achieved by reduced fuel consumption.

The proposal, which sets a single national standard, has already received the support of ten automakers and the UAW. The Obama proposal gives automakers clearly defined standards and allows them to make plans based on those standards.