U.S. Accelerates the Conversion to "Clean Cars"

The rupture from the Bush administration’s policy concerning C02 emissions could not be clearer. By aligning itself with California’s ambitious clean car objectives, the Obama administration kicked off aggressive policies intended to reduce fuel consumption. For the first time, these policies link federal emission standards to limitations on greenhouse gases that are responsible for global warming.

Yesterday, flanked by California Governor Arnold Schwarzenegger and Michigan Governor Jennifer Granholm, U.S. President Barack Obama announced plans to reduce America’s fuel consumption and to reach its stated target within four years. In addition, he announced that the plan requires that automobile manufacturers reduce automobile CO2 emissions by 30 percent starting in 2012, to be in full effect by 2015.

Starting in 2012 American automobile manufacturers must ensure that their future models average 35.5 miles per gallon. To meet this benchmark, cars should average 39 mpg, and SUVs and pick up trucks should average 30 mpg.

As a result of the government’s new plan, it is projected that the new fuel economy standards will save the equivalent of 1.8 billion barrels of petroleum. This figure is based on a projected cost of $3.50 per gallon of gas in 2016. In addition to reducing fuel consumption, the government anticipates reducing green house gases by 90 million tons over four years. These results are equivalent to 177 million less cars on the road or the closing of 184 carbon production sites.

Additional Costs

A further effect of the president’s plan will be an increase in costs to both manufacturers and consumers of automobiles. The increase is anticipated to be $600 per vehicle. This amount is in addition to the $700 supplement already imposed by the current laws concerning fuel/carbon reduction. In total, the additional cost will be $1,300 per vehicle.

After many years of resistance from the Big Three, the Obama administration obtained the support of a dozen manufacturers from the Alliance of Automobile Manufacturers (General Motors, Chrysler, Ford, and Toyota) and from 14 states.

The government’s plan is part of the administration’s agenda to reduce U.S. dependence on energy and to establish federal standards. In effect, the president will put an end to the lengthy battle between car manufacturers and California, which has long sought to impose its own standards for car emissions. According to the White House, the expected decrease in greenhouse gases achieved by the president’s plan will surpass the figures anticipated by California’s plan. However, in a statement, Schwarzenegger reminded everyone that California’s battle to reduce CO2 car emissions resulted in a victory not only for California but for all Americans.

After having spent many years combating the California initiative, automobile manufacturers find themselves committed to a policy that guarantees new, precise objectives that will be applied uniformly across the country.