President Obama Announces Policy Adopting California Model for National Fuel Efficiency Standard


President Obama announced on May 19 a new national policy aimed at both increasing fuel economy and reducing greenhouse gas (GHG) pollution for all new cars and trucks sold in the United States. The new standards, covering model years 2012-2016, will ultimately require an average fuel economy standard of 35.5 mpg in 2016. The White House projects that the plan will save 1.8 billion barrels of oil over the life of the program, with a fuel economy gain averaging more than 5 percent per year and a reduction of approximately 900 million metric tons in GHG emissions. This standard surpasses the Corporate Average Fuel Economy (CAFE) standard passed by Congress in 2007, which required an average fuel economy of 35 mpg in 2020.

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