Obama Administration Sets New Fuel Economy Standards

. The EPA standard would be equivalent to 35.5 miles per gallon if all reductions came from fuel economy improvements.

Specifically, the new National Program:

 - Reduces carbon dioxide emissions by about 960 million metric tons over the lifetime of the vehicles regulated, equivalent to taking 50 million cars and light trucks off the road in 2030.

 - Conserves about 1.8 billion barrels of oil over the lifetime of the vehicles regulated.

 - Enables the average car buyer of a 2016 model year vehicle to enjoy a net savings of $3,000 over the lifetime of the vehicle, as upfront technology costs are offset by lower fuel costs.

The joint final regulation achieves the goal set by President Obama to develop a National Program to establish federal standards that meet the needs of the states and the nation as a whole to conserve energy and reduce greenhouse gas emissions. President Obama first announced the effort last May with a broad coalition of automakers, the United Auto Workers, States, and the environmental community.

NHTSA and EPA expect automobile manufacturers will meet these standards by more widespread adoption of conventional technologies that are already in commercial use, such as more efficient engines, transmissions, tires, aerodynamics, and materials, as well as improvements in air conditioning systems.  Although the standards can be met with conventional technologies, EPA and NHTSA also expect that some manufacturers may choose to pursue more advanced fuel-saving technologies like hybrid vehicles clean diesel engines, plug-in hybrid electric vehicles, and electric vehicles.

In conjunction with the United States, Canada is also announcing Light Duty Vehicle GHG-Emissions regulations today. U.S. EPA and NHTSA have worked closely with Environment Canada to ensure a common North American approach.

Climate change is the single greatest long-term global environmental challenge. Cars, SUVs, minivans, and pickup trucks are responsible for almost 60 percent of all U.S. transportation-related greenhouse gas emissions.

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