President Obama announces 54.5 mpge, 163 gCO2/mile target for MY2025 light-duty vehicles; California on board
President Barack Obama announced an agreement with 13 major automakers to pursue the next phase in the Administration’s national vehicle program (earlier post), increasing fuel economy to a fleetwide average 54.5 mpge (miles per gallon equivalent) (4.32 L/100km) or 163 g/mile of CO2for cars and light-duty trucks by Model Year 2025.
The President was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo—which together account for more than 90% of all vehicles sold in the United States—as well as the United Auto Workers (UAW), and the State of California, who were integral to developing this agreement.
The Environmental Protection Agency (EPA) and the Department of Transportation (DOT) worked closely with auto manufacturers, the state of California, environmental groups, and other stakeholders for several months on the program. The new program has different rates of increasing stringency for cars and light-duty trucks:
Stringency of standards for passenger cars would increase by an average of 5% each year.
Stringency of standards for pick-ups and other light-duty trucks would increase an average of 3.5% annually for the first five model years and an average of 5% annually for the last four model years of the program, to account for the challenges associated with this class of vehicles.
The US Environmental Protection Agency (EPA) and NHTSA (National Highway Traffic Safety Administration) are developing a joint proposed rulemaking (EPA for GHG emissions, NHTSA for fuel economy), which will include full details on the proposed program and supporting analyses, including the costs and benefits of the proposal and its effects on the economy, auto manufacturers, and consumers.
In achieving the level of standards for the 2017-2025 program, the two agencies expect automakers’ use of advanced technologies to be an important element of transforming the vehicle fleet. The agencies are considering a number of incentive programs to encourage early adoption and introduction into the marketplace of advanced technologies, including:
Incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles;
Incentives for advanced technology packages for large pickups, such as hybridization and other performance-based strategies;
Credits for technologies with potential to achieve real-world CO2 reductions and fuel economy improvements that are not captured by the standards test procedures.
In addition, EPA plans to propose provisions for:
Credits for improvements in air conditioning (A/C) systems, both for efficiency improvements and for use of alternative, lower global warming potential refrigerant;
Treatment of compressed natural gas (CNG);
Continued credit banking and trading, including a one-time carry-forward of unused MY 2010-2016 credits through MY 2021.
Given the long time frame at issue in setting standards for MY2022-2025 light-duty vehicles, EPA and NHTSA intend to propose a comprehensive mid-term evaluation. Consistent with the agencies’ commitment to maintaining a single national framework for vehicle GHG and fuel economy regulation, the agencies will conduct the mid-term evaluation in close coordination with California.
After the proposed rules are published in the Federal Register, there will be an opportunity for public comment and public hearings. The agencies plan to issue a Notice of Proposed Rulemaking by the end of September 2011. California plans on adopting its proposed rule in the same time frame as the federal proposal.
The combination of the new MY 2017-2025, the current MY 2012-2016 program, and the model year 2011 light truck standard, represent the first significant update to fuel efficiency standards in three decades, spanning MY 2011-2025. According to Administration calculations, the combined programs will save American families $1.7 trillion dollars in fuel costs, and by 2025 result in an average fuel savings of more than $8,000 per vehicle. Additionally, these programs reduce oil consumption by a total of some 12 billion barrels, and by 2025 reduce oil consumption by 2.2 million barrels a day.
The standards also cut more than 6 billion metric tons of greenhouse gas emissions over the life of the program. The oil savings, consumer, and environmental benefits of the comprehensive program are detailed in a new report entitled Driving Efficiency: Cutting Costs for Families at the Pump and Slashing Dependence on Oil, which the Administration released today.