The administration is proposing tough new fuel economy standards and the first-ever greenhouse gas pollution standards for cars and trucks,' the senior official said. AP photo
Obama Administration National Fuel Efficiency Policy: Good For Consumers, Good For The Economy And Good For The Country
Stephen Pate, NJN Network, Charlottetown, Prince Edward Island, Canada, May 19 2009 with story from White House
President Obama, in a Rose Garden press conference announced that the United States will adopt a single standard for fuel efficiency and emissions with a 35.5 mile per gallon average by the 2016 model year. The emissions standards are still being developed.
Additional costs to consumers were said to be recovered within three years of normal driving.
Obama had the governors of California, Massachusetts and Michigan in agreement which is historic. He also had representatives from seven major automobile manufacturers in agreement. Standing behind the President were representatives from Ford, Toyota, General Motors, Honda, Chrysler, BMW AG, Nissan, Daimler AG, Mazda, Volkswagen plus the United Autos Workers, plus the DOT, EPA and the assistant to the President for Energy and Climate Change Carol Browner.
With the consensus he has built, Obama looks like a winner on resolving some of the short to mid-term energy problems. The longer term when oil supplies decline in the next decade will be another challenge for the can-do President.
Initial media coverage went from positive to negative within 30 minutes. CNN’s lead read Hurdles remain despite fuel economy rules . AP was more straight to the story Obama wants increased fuel efficiency, less smog which will be the most widely quoted story by tomorrow. Reuters took the same approach Obama to unveil most aggressive auto fuel standards.
Obama Administration National Fuel Efficiency Policy: Good For Consumers, Good For The Economy And Good For The Country
The proposed national autos program adopts uniform federal standards to regulate both fuel economy and greenhouse gas emissions while preserving the legal authorities of DOT, EPA and California. The program covers model year 2012 to model year 2016 and ultimately requires an average fuel economy standard of 35.5 mpg in 2016. The result is 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.
Ten car companies and the UAW have embraced the national program because 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.
Good for Consumers:
- Consumer Savings: This will save American consumers money over the long term in increased fuel efficiency.
- Consumer Choice: The proposed new national policy will preserve consumer choice. 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.
- A Cleaner Environment: New policy will produce environmental benefits that will reduce air pollution from the reduction of greenhouse gas emissions and other conventional pollutants.
Good for the Economy:
- Clear Rules: 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.
- Lower Costs: This national policy has the potential to lower compliance costs for automakers by avoiding a patchwork of fuel efficiency and pollution rules.
- 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.
Good for the Country:
- Energy Independence: 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).
- Effective Government: Historic collaboration between two agencies; breaking down silos and working towards a common goal and outcomes.
- Bringing People Together: The national policy has the support of CEOs, Governors, the UAW, the environmental community and others around this first, comprehensive national policy.
Below is a list of on-stage participants and expected attendees at today’s event:
On-stage participants:
– Alan Mulally, CEO, Ford
– Jim Lentz, President, Toyota
– Fritz Henderson, President, General Motors
– John Mendel, Executive Vice President, Honda
– Bob Nardelli, CEO, Chrysler
– Dr. Friedrich Eichiner, COO and Director, BMW AG
– Dominique Thormann, CEO, Nissan
– Dr. Dieter Zetsche, Chairman, Daimler AG, Head of Mercedes-Benz Cars
– Jim O’Sullivan , President and CEO, Mazda North American Operations
– Stefan Jacoby, President and CEO, Volkswagen Group of America
– United Autos Workers President Ron Gettlefinger
– Department of Transportation Secretary Ray LaHood
– Environmental Protection Agency Administrator Jackson
– Assistant to the President for Energy and Climate Change Carol Browner
Expected attendees:
– Secretary Tom Vilsack
– Secretary Ken Salazar
– Secretary Shaun Donovan
– Secretary Hilda Solis
– Governor Jennifer Granholm
– Governor Arnold Schwarzenegger
– Governor Deval Patrick
– Senator Carl Levin
– Senator Debbie Stabenow
– Senator Barbara Boxer
– Senator Dianne Feinstein
– Speaker Nancy Pelosi
– Rep. John Dingell
– Rep. Sandy Levin
– EPA Administrator Lisa Jackson
– CEQ Chair Nancy Sutley
– Office of Science and Technology Policy Director John Holdren
– California State Senator Fran Pavley
– Chairman of the California Air Resources Board Mary Nichols
– Representatives from the United Auto Workers Union
– Leaders of League of Conservation Voters, Natural Resources Defense Council, Sierra Club, Environmental Defense Fund, and Union of Concerned Scientists
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