President Barack Obama is expected later on Tuesday (19 May) to propose the most aggressive increase in US vehicle fuel efficiency ever in a policy initiative that would also directly regulate emissions for the first time and resolve a dispute with California over cleaner cars.
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The US at present has two emissions standards – California (also adopted by a number of eastern states) and the rest of the US but media reports say Obama’s administration plans a 50-state standard.
An anonymous senior administration official last night told Reuters average fuel standards for all new passenger vehicles – cars and light trucks – would rise by 10 miles a US gallon [NB a US gallon is 3.9 litres vs 4.54 litres in other countries – ed] over today’s performance to 35.5 miles per US gallon between 2012-16.
Climate-warming carbon emissions would fall by 900m tonnes, or more than 30% over the life of the programme, the official added.
“All companies will be required to make more efficient and cleaner cars,” the official was quoted as saying, adding the government had estimated the programme would save 1.8bn barrels of oil.
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By GlobalData“The agreement that the Obama administration will announce today forcing dramatic reductions in vehicle greenhouse gas emissions and improvements in auto mileage [ie fuel economy] marks a potentially pivotal shift in the battle over global warming – and a vindication of California’s long battle to toughen standards.” the Los Angeles Times said in its online Tuesday edition.
“After decades of political sparring, legal challenges and scientific arguments over climate change, three of the central players – the federal government, major US automakers and California – have found that the time has come to suspend hostilities and make a deal.”
California’s Environmental Defence Fund said, under the agreement, EPA [the Environment Protection Agency] would grant California’s request to enforce its state clean car standards while the US developed harmonised national emission standards and fuel economy standards under federal law.
”Significantly, the nation’s automakers would drop long-standing litigation over the state clean car standards,” a statement said.
According to Reuters, an industry trade group said US and key foreign-owned automakers, including near-bankrupt General Motors and efficiency leader Toyota, support the plan.
“GM and the auto industry benefit by having more consistency and certainty to guide our product plans,” GM CEO Fritz Henderson said in a statement.
Toyota Motor Sales USA president James Lentz said the single national standard would enhance vehicle choice for consumers.
Chrysler said tday’s announcement “begins an important process of harmonising state and federal fuel economy programmes”.
“With regulatory clarity and certainty, Chrysler and its alliance partner, Fiat, will now be able to concentrate their resources on developing a nationwide fleet of clean, fuel-efficient vehicles that will help support its revitalisation and benefit American consumers.”
Chrysler said it would soon introduce a new, high-volume V6 engine that would deliver up to 8% improved fuel economy while the alliance with Fiat would “initially deliver consumers a world-class small engine and overall powertrain technology that will rapidly bring to market even more fuel-efficient, environmentally friendly small cars”.
According to Reuters, the new programme would, according to the administration, add about US$600 to the price of producing a vehicle compared with the current law, which requires automakers to achieve a fleet average of 35 mpg by 2020, a 40% increase over today’s performance.
Reuters noted that US auto companies fought significant increases in fuel standards for decades before Congress and the Bush administration agreed to stricter targets in 2007. Some vehicles, most made by overseas manufacturers, already meet or exceed the standards set to be proposed.
Last March, the government said fuel economy standards for all US light vehicles would rise 8% to an average of 27.3 mpg for the 2011 model year.
Under that timetable, cars would be required to travel an industry average of 30.2 miles per US gallon, up from 27.5 mpg, and light-truck standards would increase by 1 mpg, to 24.1 mpg, Reuters said.
California also supports the Obama proposal, the official told the news agency. California had previously sought a waiver from federal environmental law to impose its own regulations to cut auto emissions, but the Bush administration would not permit it.
In addition, automakers sued to stop California on grounds the initiative would create a patchwork of rules if other states followed suit instead of a single national fuel efficiency standard.
“California has agreed that they will defer to the proposed national standard,” the official told Reuters, if it was finalised.
Reuters noted that the 30% reduction in emissions was more aggressive than sought by California and other states that have supported its bid for a waiver.
The administration in April opened the way to regulating emissions by declaring climate-warming pollution a danger to human health and welfare, in a sharp policy shift from the Bush administration, the report added.
The new policy would give automakers flexibility to meet the standards and would weigh the impact on the environment of carbon-based fuels and other vehicle systems that emit emissions, like air conditioners.
According to Reuters, the plan assumes average petrol prices of $3.50 per gallon by 2016, which administration officials hope will help push consumers into more fuel-efficient cars and trucks.
The US Congress is currently considering legislation that would offer consumers as much as $4,500 to trade in older, less fuel-efficient models for vehicles that get sharply better fuel economy.
