| December 3, 2007 |  |
House Reaches Historic Breakthrough on Fuel Economy
35 mile-per-gallon minimum standard locked in for 2020
On Friday, November 30, House leaders announced an agreement that represents the first meaningful improvement in vehicle fuel economy in more than 30 years. The agreement would raise fuel economy standards of America's cars, light trucks and sport utility vehicles to an average of at least 35 miles per gallon (mpg) by 2020, a 10-mpg increase over current levels.
"This agreement breaks 30 years of gridlock on fuel economy and could not have happened without strong congressional leaders who are committed to curbing America's oil addiction," said David Friedman, the research director of the Union of Concerned Scientists' Clean Vehicles Program. "This is a victory for Americans struggling to pay $3 for a gallon of gasoline. If passed, it will deliver consumer savings of more than $20 billion in 2020."
According to UCS analysis, full implementation of this compromise will save approximately 1.1 million barrels of oil per day in 2020. That is half of what the United States currently imports from the entire Persian Gulf. As a result, American consumers will save $22 billion dollars in 2020—after paying the cost of the necessary fuel economy technology. In addition, the legislation would prevent the release of more than 190 million metric tons of global warming pollution. That is the equivalent to taking 28 million of today's average cars and trucks off the road in that year.
"This agreement sends a clear signal: It's time for automakers to turn their PR into products," said Friedman. "We have the technology today to deliver more miles to the gallon, and 35 is just the beginning."
The House agreement sets a floor for fuel economy. It would require current and future administrations to make steady progress each year beginning in 2011, ultimately resulting in a fleet of new cars, SUVs, minivans and pickups that meets an average of at least 35 miles per gallon in 2020. The standards would be based on vehicle attributes, so companies that make more large vehicles, such as Detroit's Big 3, would have to meet a requirement of only 33 mpg by 2020. Companies that sell fewer large vehicles, such as Honda and Volkswagen, would have to reach an average of 37 to 39 mpg. At the same time, it would leave all existing laws intact, keeping the door open to efforts underway at both the federal and state level to reduce vehicle global warming pollution.
The agreement is a strong step forward, but it is still a compromise, UCS experts cautioned. Under the agreement, automakers would continue to receive flex-fuel vehicle credits for vehicles that can, but rarely do, run on alternative fuels. While this does erode oil savings, the loophole would be phased out and ultimately eliminated in 2020. "While the agreement preserves separate passenger and non-passenger vehicle standards," Friedman explained, "the locked-in 35-mile-per-gallon requirement should guard against automakers attempting to game the system."
Key Facts:
By reaching a 35 mpg fleetwide average in 2020:
Oil savings: 1.1 million barrels per day in 2020
Net savings for consumers: $22 billion in 2020 (after paying for the needed technology)
Greenhouse gas "savings": 192 million metric tons of global warming pollution avoided in 2020 (equal to taking 28 million of today's average cars and trucks off the road)
Estimated 2007 gasoline demand: 145 billion gallons
Annual consumer spending on gasoline: more than $370 billion
Current spending on oil and petroleum imports: $1 billion per day
Oil imports: 60 percent, 12 million barrels per day
Oil imports from the Persian Gulf: 2.2 million barrels per day in 2006
Today's average fuel economy: about 25 mpg
Peak year for fuel economy: 1987 at about 26 mpg
Lifetime gasoline savings for the 35 mpg average vehicle: more than $4,500
Added cost for the average vehicle to reach 35 mpg: $1,000 to $1,500
Payback time: two to three years
The Union of Concerned Scientists puts rigorous, independent science to work to solve our planet's most pressing problems. Joining with citizens across the country, we combine technical analysis and effective advocacy to create innovative, practical solutions for a healthy, safe, and sustainable future.
