Fuel Economy Regulations Tightened

President Barack Obama recently announced a new national policy aimed at both increasing fuel economy and reducing greenhouse gas pollution for all new cars and trucks sold in the United States. The new standards, covering model years 2012-2016, and ultimately requiring an average fuel economy standard of 35.5 mpg in 2016, are projected to save 1.8 billion barrels of oil over the life of the program with a fuel economy gain averaging more than 5 percent per year and a reduction of approximately 900 million metric tons in greenhouse gas emissions. This would surpass the Corporate Average Fuel Economy (CAFE) law passed by Congress in 2007 required an average fuel economy of 35 mpg in 2020.

This policy represents an unprecedented collaboration between the Department of Transportation, the Environmental Protection Agency, the world's largest auto manufacturers, the United Auto Workers, leaders in the environmental community, the State of California and other state governments.

The standards will largely mean the countrywide adoption of standards first adopted by California. The average passenger car will have to achieve a fuel economy rating of 39 miles per gallon by 2016, while light trucks will need to achieve 30 mpg, or roughly 30 percent more fuel efficiency than that achieved by the current fleet.

Safety advocates oppose the move, as it will likely mean smaller, less powerful cars and trucks that sacrifice weight, and thus passenger safety, in the name of fuel economy. The only 2009 models that meet the proposed 2016 standard are the Honda Insight and Civic hybrids, and the Toyota Prius hybrid.