National Clean Vehicles Program
New national standards will save oil, cut emissions, and save money at the pump
Increasing the fuel economy of America’s cars and trucks enhances energy security, cuts global warming emissions, and saves consumers money at the gas pump. Using existing technology, any vehicle – from sedans to minivans to pickup trucks – can go farther on a gallon of gas and release fewer heat-trapping emissions. Unfortunately, little progress had been made since the mid 1980s to increase fuel economy and realize these benefits. As a result, today’s average new vehicle sold in the U.S. has virtually the same fuel economy as a new vehicle sold twenty years ago.
In response, Congress, the Environmental Protection Agency, the Department of Transportation, and the State of California have all taken steps in the past few years to raise fuel economy and reduce greenhouse gas emissions from new cars and light trucks. Consolidating these efforts, President Obama announced the new National Clean Vehicles Program in May 2009 to boost fuel economy and cut greenhouse gas emissions through model year 2016. These standards represent an unprecedented agreement between the Federal government, the state of California, and the auto industry. Once finalized, the agreement will represent the largest improvement in fuel economy in over thirty years.
The Proposed National Clean Vehicles Program
In a joint Notice of Proposed Rulemaking (NPRM) announced on September 15, 2009, EPA and DOT proposed standards which establish separate passenger car and light truck fleet averages covering model years 2012-2016. The new National Clean Vehicles Program creates separate, but complimentary, fuel economy and tailpipe greenhouse gas emission standards. The Department of Transportation (DOT) is responsible for administering the fuel economy requirements, which establish fleetwide average fuel economy targets for new cars and light trucks sold, expressed in miles per gallon (mpg). The Environmental Protection Agency (EPA) administers the greenhouse gas tailpipe standard, which establishes similar fleetwide averages for new cars and light trucks, expressed in grams per mile (g/mi). Both agencies establish the standards according to size-based vehicle categories. In addition, the state of California maintains its authority under the Clean Air Act to set its own greenhouse gas standards as part of the National Program. Specifically, the California standards will match the National Program from model year 2012-2016, although California continues to have the option to set new standards once the program expires.
Real Progress, Real Benefits: Oil Savings, Pollution Reductions, and Consumer Savings
Automakers will be able to integrate existing fuel-saving technology into their product plans to meet these new standards. At the proposed levels, the vast majority of gains will come from improvements to conventional technology – more efficient engines, smarter transmissions, better aerodynamics, and high-strength, lightweight materials. While we expect an increasing number of hybrid-electric vehicles to come on the market in this time period, these standards do not require increasing hybridization. When finalized, the standards proposed in the NPRM would achieve the following benefits in 2020 according to analysis by UCS.
U.S. light duty vehicles will consume 1.3 million fewer barrels of oil per day in 2020 due to improved fuel economy under the National Program. This translates into a savings of nearly 20 billion gallons of gasoline in just one year.
As a result of these oil savings, consumers will save money at the gas pump. Even if prices stay at current levels ($2.50/gallon), American consumers will save $32 billion in 2020. These net savings account for the additional cost of fuel-saving technology, demonstrating that consumers still realize significant savings even with a slightly higher initial purchase price of a new vehicle. Further, if prices return to higher levels ($4.00/gallon), the savings would nearly double to approximately $61 billion.
The standards will also dramatically reduce greenhouse gas tailpipe emissions from vehicles. In 2020, the standards will keep 215 million metric tons of greenhouse gases from entering the atmosphere. This is equivalent to taking 32 million typical vehicles off the road in that year.
Locking in Progress: Finalizing Strong Standards
Improving the fuel economy of America’s new cars and light trucks can help the country tackle the twin challenges of global climate change and energy security. The proposed National Clean Vehicles Program would achieve a dramatic reduction in U.S. oil consumption, saving Americans money at the gas pump and reducing tailpipe greenhouse gas emissions. In order to realize this promise, EPA and DOT must ensure that the final standards maintain the necessary stringency and structure to ensure that automakers achieve the President’s goals.
