Reply #8: Fuel economy rule calls for 35.5 m.p.g. by 2016 for U.S. vehicles

[ozymandius]

NEW YORK -- The Obama administration unveiled its historic rules Thursday, setting a 35.5 m.p.g. average for the U.S. auto industry by 2016, which the government said would cut fuel consumption by 40% and generate $130 billion in benefits.

While the new rule is estimated to cost the industry $52 billion to meet, automakers embraced the standards for avoiding a patchwork of state and federal regulationsand called on the government to begin work immediately on updates for the 2017 model year and beyond.

Administration officials said the rules would raise the average price of a new vehicle by less than $1,000 in the 2016 model year and that many consumers would earn back the cost in fuel savings over three years. ....

The joint rule between the Department of Transportation and the U.S. Environmental Protection Agency is the first U.S. limit designed to reduce greenhouse gas emissions, stemming from a Supreme Court ruling that classified carbon dioxide as a pollutant under federal law.

Automakers had backed the rule, which sets a target for every vehicle's fuel economy based on its size. The actual fuel economy target is 34.1 m.p.g., with the difference made up through more efficient air conditioning that should reduce carbon emissions.

http://www.freep.com/article/20100402/BUSINESS01/4020329/1320/Rule-calls-for-35.5-m.p.g.-by-2016