WASHINGTON -- The Obama administration on Tuesday finalized standards that will increase fuel economy to the equivalent of 54.5 miles per gallon (mpg) for cars and light-duty trucks by Model Year 2025.
When combined with previous standards set by this administration, this move will nearly double the fuel efficiency of those vehicles compared to new vehicles currently on the road. In total, the administration's national program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gasoline pump and reduce U.S. oil consumption by 12 billion barrels, the administration claimed.
The standards issued by the U.S. Department of Transportation (DOT) and the U.S. Environmental Protection Agency (EPA) build on the standards that the administration set for cars and light trucks for Model Years 2011-2016. Those standards raised average fuel efficiency by 2016 to the equivalent of 35.5 mpg.
Achieving the new fuel efficiency standards will encourage innovation and investment in advanced technologies that increase our economic competitiveness and support high-quality domestic jobs in the auto industry, said the administration. The DOT's National Highway Traffic Safety Administration (NHTSA) and the EPA developed the final standards following extensive engagement with automakers, the United Auto Workers, consumer groups, environmental and energy experts, states and the public.
Last year, 13 major automakers, which together account for more than 90% of all vehicles sold in the United States, announced their support for the new standards. By aligning federal and state requirements and providing manufacturers with long-term regulatory certainty and compliance flexibility, the standards encourage investments in clean, innovative technologies that will benefit families, promote U.S. leadership in the automotive sector and curb pollution, according to the administration.
The update to fuel efficiency standards will save American families more than $1.7 trillion dollars in fuel costs, resulting in an average fuel savings of more than $8,000 by 2025 over the lifetime of the vehicle, the administration said. For families purchasing a 2025 vehicle, the net savings will be comparable to lowering the price of gasoline by approximately $1 per gallon, it added. Additionally, these programs will dramatically reduce U.S. reliance on foreign oil, saving a total of 12 billion barrels of oil and reducing oil consumption by more than 2 million barrels a day by 2025, it claimed.
Click here to read the full press release. And see File Attachments below to view the full text of the final rule.
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