Snap Fact #266
Obama Administration to Finalize New 54.5 Gasoline Mileage Standard; Romney Vows to Rescind the Standard if Elected President!
New fuel efficiency (gasoline mileage) standards of 54.5 miles per gallon are set to be finalized by the Obama administration this summer with full non-partisan support. The new standards were recently sent to the Office of Management and Budget for final review. The new gas mileage standard is built on gas-mileage boosts mandated by the Bush administration.
The history since then has been lax enforcement. Finally "our addiction" to oil is now being addressed in earnest by the Obama Administration. The standards will require a 5 percent annual increase in car fuel economy from the 2017 model year through the 2025 model year, starting with the previous 35.5 mpg target for 2016 and rising to the ultimate goal of 54.5 MPGs.
The administration’s focused mission is cutting the nation’s dependence on oil. It is reckoned that this program, over its life is expected to save an estimated 12 billion barrels of oil. That amounts to nearly four years’ worth of consumption by light-duty vehicles at current levels.
The impact for consumers is that the program should save an estimated $1.7 trillion dollars in real fuel costs over the life of their vehicles. By 2025, the standards are projected to save families an estimated $8,200 in fuel savings over the lifetime of a new vehicle, compared to vehicles in the 2010 model year. While most vehicles will have to meet the 54.5 mpg standard by 2025, full-sized pickups and some SUVs would be exempt from the 2017 model year through the 2019 model year beyond which they will get their own standard. The reason is that the commercial consumers that purchase such vehicles require their strength, durability and towing capacity.
When President Obama announced plans for further mileage improvements, auto executives stood with him in support. The 54.5 mpg standard has been endorsed by a wide slice of society, including the State of California, unions --- e.g. the United Auto Workers (UAW), national security leaders and consumer groups, business organizations, public health advocates, national environmental organizations, and institutional investors.