Obama Boosts CAFE: 8 mpg bump by 2016

Today the Obama administration released its Corporate Average Fuel Economy (CAFE) requirements for the near term to 2016. The goal is an 8 mpg boost in the national fleet average per U.S. manufacturer with a resultant savings of some 1.8 billion barrels of oil and a reduction in greenhouse gasses of an estimated 900 million metric tons.

Working from the 2011 model year CAFE standard of 27.3 mpg combined (cars, 30.2; light trucks, 24.1) announced in March, the standard will increase annually by 5pct, capping out at 35.5 mph (42 mpg for cars and 26 mpg for light trucks) in 2016.

From the White House, the President said, "Right now, the rules governing fuel economy in this nation are inadequate, uncertain and in flux." To steady up the regulatory process, a single national policy for all automakers will be in force where currently there are three policy makers - the Environmental Protection Agency, the Department of Transportation and the California DoT whose strict standards have been adopted by 13 other states.

To placate the California regulations users, the EPA has now been charged with regulating auto emissions nationwide. Although the entire program will require technology not currently in place in a large number of vehicles, the industry is already marketing these systems which include direct fuel injection, continuously variable valve timing, start-stop, cylinder deactivation, dual-clutch transmissions, five- and six-speed automatic transmissions, continuously variable ratio transmissions, turbocharging, improved air conditioners, low-drag aerodynamics and hybrid drive systems. Other fuel-efficient technologies in the pipeline include advanced diesel engines, fuel cell and electric vehicles, but only the latter was mentioned in materials released by the Feds today.

Today's proposals were supported by 10 automakers and the UAW. Ford President and CEO Alan Mulally said, "Today's announcement signals the achievement of a crucial milestone - an agreement in principle on a national program for increased fuel economy and reduced greenhouse gases."