Friday, July 29, 2011

New Fuel Economy Standards

http://www.nytimes.com/2011/07/29/business/carmakers-back-strict-new-rules-for-gas-mileage.html?emc=eta1

***************

"You invest yourself in what you believe can succeed." (John C. Maxwell)

***************

President Obama is scheduled today to announce the largest increase in fuel economy rules since the government began regulating consumption of gasoline by cars in the 1970s. The CEOs of Detroit's Big Three are scheduled to be there with the President to show solidarity on the issue.

The increase is from the current 27 miles per gallon (fleet average) to 54.5 miles per gallon by 2025. Getting "agreement" from Detroit has been helped by some give and take from the government: the goals for pick-up trucks (and SUVs) are less restrictive. While the agreement calls for a 5% annual increase in fuel economy for cars from 2017 to 2025, the light-truck category calls for 3.5% per year thru 2021, and then 5% annually for the following 4 years.

Standards that were announced 4 years ago run thru 2016 (36 miles per gallon by then).

In addition, the car companies can earn "credits" for producing battery-powered vehicles, hybrids and alternative-fuel models. While "details" on that aren't available yet, we're going to assume that, if the car companies don't hit the goal of 54.5 mpg by 2025, these credits will help them get there.

As David Cole points out, "The really big part of this is the midpoint review. By then, everybody will have a better understanding of the cost of the technology, particularly the batteries."

All of this doesn't change the physics of auto safety. If I get in an accident, I'd rather be driving an Escalade than a VW Beetle. Especially, if it's those two that hit each other.

And, it's nice to have all the "rah, rah" about us being less foreign oil dependent. If we really care about that, lets develop more of the oil and gas available in North America. We can't even OK a second pipeline from Canada to transport more oil from their huge Alberta oil sands deposits to the U.S. We don't we all sit around the campfire and debate about that while China continues to buy into those same deposits?

Last, somebody get back to me when they can explain how I drive to California from here (Dallas) in a Nissan Leaf (all electric: best range - 100 miles, actual use - more like 80 miles).

Of course, I'm part of a generation that remembers filling up at the pump for 25 cents a gallon!

2 comments:

  1. This all depends on your faith in innovation.

    ReplyDelete
  2. The U.S. is still number 1 in the world in innovation. The problem is that there are some who don't understand how closely innovation correlates to immigration.

    ReplyDelete