ABC News’ Jake Tapper and Sunlen Miller report:
President Obama will today announce new national fuel efficiency and auto emissions standards program beginning in model year 2012.
For the current model year, 2009, the average fuel efficiency for cars and light trucks is 25 mpg.
By 2016 the fleet average will be 35.5 mpg – 39 mpg for cars, and 30 mpg for trucks. This is four years earlier than the current law requires, and is an average 5% per year increase in fuel efficiency from 2012 through 2016.
The total increased cost of manufacturing the average 2016 vehicle will be $1,300. The EPA estimates consumers will make that money back within 3.2 years.
A senior administration officials says the "immediate savings obviously to consumer the consumer because of the fuel savings, the car are more fuel efficient, and so for people who buy their cars on time, over a 16-month loan — which is about 70% of the American people — on a month to month basis, it may end up being a wash, in terms of there is a slight increase in the price of the car but that is off set by the lower gasoline.”
Projected oil savings of the program is 1.8 billion barrels of oil from 2012 through 2016.
The plan will, over the lifetime of the new vehicles, reduce emissions of greenhouse gases by 900 million metric tons — comparable to taking 177 million cars off the road or shutting down 194 coal-fired power plants, according to the EPA.
More to come on this…
– Jake Tapper and Sunlen Miller