|
From today's WSJ:
WASHINGTON—The Obama administration on Tuesday released its final fuel-efficiency standards for cars and trucks, requiring each auto maker's fleet to reach an average of 54.5 miles per gallon by 2025.
The announcement, coming during the Republican National Convention, highlighted the political debate over energy, with the Obama administration touting the savings for consumers who use less gasoline and Republicans calling the standards too harsh.
"These fuel standards represent the single most important step we've ever taken to reduce our dependence on foreign oil," said President Barack Obama in a statement Tuesday. "It'll strengthen our nation's energy security, it's good for middle-class families and it will help create an economy built to last."
His Republican rival, Mitt Romney, has said he opposes the standards set by the Obama administration, though he has stopped short of saying he is against fuel-economy standards altogether. Romney campaign spokeswoman Andrea Saul said last week: "Governor Romney opposes the extreme standards that President Obama has imposed, which will limit the choices available to American families."
The fuel-economy level was the same as the administration initially proposed in November 2011, and the final rule had been expected after the administration negotiated the details with auto makers and others last year.
The average fuel economy of vehicles in the 2011 model year was 28.6 miles per gallon, according to the Environmental Protection Agency, meaning the administration is seeking nearly to double fuel economy over a space of 14 years.
The administration estimated that as a result of the standards, an average family would save more than $8,000 by 2025 on fuel costs at current gasoline prices, while the cost of a vehicle would rise as much as $1,800.
The fuel savings "will more than make up for any increase in the cost of an automobile," Transportation Secretary Ray LaHood said on a conference call with reporters. "We are raising the bar and ensuring that Americans are preparing for fluctuations in gas prices. We are also giving manufacturers the regulatory certainty they need to build more efficient cars."
The auto industry has favored national standards for years to avoid having to comply with different laws in different states.
But the industry's main trade group sounded a cautionary note on Tuesday. Gloria Bergquist, vice president for public affairs at the Alliance of Automobile Manufacturers, said the new standards would be difficult to meet without infrastructure to support them, such as electric-vehicle charging stations or refueling stations for gasoline alternatives like natural gas.
"Just a mandate to build the vehicles may well fall short," Ms. Bergquist said in an interview. "If we really want to reduce fuel use, we need to develop the fuels, the charging stations and the technology at the same time."
The White House said the standards include "targeted incentives" for more advanced electric vehicles, hybrids, natural-gas vehicles and other alternative vehicles. It left the door open to making adjustments, saying the EPA and the Department of Transportation may revisit the standards after they take effect "to review their effectiveness and make any needed adjustments."
The standards made final Tuesday cover vehicles with model years 2017 to 2025. A separate rule boosts fleet fuel economy to 35.5 miles per gallon by the 2016 model year.
The rules will require fuel-economy improvements sooner for passenger cars, allowing more time for changes to sport-utility vehicles and pickups. Asian auto makers' fleets are dominated by passenger cars, while Detroit auto makers rely more heavily on pickups and SUVs for their profits.
The standards also include a limit on carbon-dioxide emissions, which are linked to climate change. The Environmental Protection Agency said the rules would reduce emissions of carbon dioxide and other greenhouse gases by six billion metric tons through 2025.
"It is as though we eliminated all of our [carbon dioxide] emissions for one year," said EPA Administrator Lisa Jackson. "It is indeed very significant."
|