New Fuel Economy Policies: An Historic Step Forward

For the past 20 years, U.S. Corporate Average Fuel Economy (CAFE) standards have remained stagnant despite increased fuel consumption in the transportation sector. Currently at 27.5 mpg for cars and 22 mpg for light trucks, today's standards were set to increase to 35.5 mpg overall, but not until 2020.

A May 18 policy issued by the Obama administration looks to jump-start that process, moving the compliance date to 2016. By shaving four years off the scheduled rise to 35.5 miles per gallon, the new CAFE standards and emissions policies will "continue and speed up the   forward-drive to a green energy future that has been promised by this administration," says Alliance President Kateri Callahan. She added that "this ‘two-front’ fuel efficiency and climate policy will help our nation become a world leader in energy efficiency and will achieve measurable benefits for our   economy, environment, and energy security.” 

Yesterday, the Alliance congratulated the Obama administration for pursuing policies that will be embraced by all key stakeholders, ensuring aggressive and successful implementation. The accelerated pace of improvement in CAFE standards will reportedly to save 1.8 billion barrels of oil and reduce carbon emissions equivalent to taking 177 million cars off the road   for a year. It also is projected to reduce new vehicle emissions by 30 percent. 

While the requirements will reportedly increase vehicle prices in 2016 by   $1,300 over current levels, consumer cost will be offset through increased fuel   savings.

Callahan concluded:  “After more than three decades of falling behind, with actions on fuel economy and huge investments through the economic stimulus   package, the administration is ‘leap-frogging’ to world leadership in crafting and implementing public policies that will allow us to reap the full economic,   security and environmental benefits promised by using our energy resources more efficiently.”

Read more about the administration's new national fuel efficiency policy.