Following a recent announcement on CAFE standards to take effect in 2011, the Obama administration will reportedly release a new set of fuel-economy standards for 2012-2016 on Tuesday. The new standard will be a compromise between federal standards and those requested by the state of California.
According to Automotive News, the Obama administration’s new CAFE standards will require a 35 mile per gallon fleet wide average by 2016 – a full four years before that mark was set to be achieved. The Bush administration’s energy law of 2007 called for a 35 mpg average – a 40 percent improvement over the current average – by 2020.
In March President Obama enacted CAFE standards for the 2011 model year after the previous administration failed to do so. The 2011 standards call for an 8 percent fuel economy increase to 27.3 mpg, or a 30.2 mpg average for passenger cars and 24.1 mpg for light trucks. The move to a 27.3 mpg average will reportedly cost automakers $1.46 billion.
Check back tomorrow for more details on President Obama’s plan.
