Obama Administration Announces National Fuel Efficiency Policy

Obama says the plan makes sense for consumers, it is good for the economy and good for the country.

President Obama Official White House Photo, 5/15/09, Chuck Kennedy

(WASHINGTON D.C.) - A proposed national autos program has been announced that adopts uniform federal standards to regulate both fuel economy and greenhouse gas emissions while preserving the legal authorities of DOT, EPA and California, members of the Obama Administration said today.

The program covers model year 2012 to model year 2016 and ultimately requires an average fuel economy standard of 35.5 mpg in 2016.

They say the result will be a projected reduction in oil consumption of approximately 1.8 billion barrels over the life of the program and a projected total reduction in greenhouse gas emissions of approximately 900 million metric tons.

"This groundbreaking policy is good for consumers, good for the auto industry and it helps our country by reducing pollution and promoting energy independence," Obama said.

So far, ten car companies and the United Auto Workers have embraced the national program, citing that it provides certainty and predictability to 2016 and includes flexibilities that will significantly reduce the cost of compliance.

The program also honors President Obama’s commitment to reconsider the denial of the California waiver by the Bush Administration.

The administration cited several points in favor of the proposed program. In terms of consumer savings, the President says this plan will save American consumers money over the long term in increased fuel efficiency. The proposed new national policy will also preserve consumer choice, Obama says.

The new rules will not dictate the size of cars, trucks and SUVs that manufacturers can produce; rather it will require that all sizes of vehicles become more energy efficient.

Obama says the new policy will produce environmental benefits that will reduce air pollution from the reduction of greenhouse gas emissions and other conventional pollutants while providing one national policy for all automakers, instead of three standards: a DOT standard, an EPA standard and a California standard that would apply to 13 other states.

This national policy has the potential to lower compliance costs for automakers by avoiding a patchwork of fuel efficiency and pollution rules, the administration said.

They also say it adds flexibility.

"The new national policy provides the industry what any business wants: clarity, predictability and certainty concerning the rules. As importantly, it gives them flexibility on how to meet the expected outcomes and the lead time they need to innovate."

With a stated goal of energy Independence, Obama says the new policy will result in yearly 5% increases in efficiency from 2012 through 2016. The end product - - cleaner cars and reduced dependence on oil (1.8 Billion barrels of oil cumulatively, over the lifetime of the program) and significant reductions in greenhouse gas emissions (savings equivalent to taking 177 million of today's cars off the road).

Obama says historic collaboration between two agencies will lead to more effective use of government, and says the national policy has the support of CEOs, Governors, the UAW, the environmental community and others around this first, comprehensive national policy.

Special thanks to White House media