New EPA reg.- Cars/light trucks- 54.5 miles per gallon by 2025 ( presently- 27)

Discussion in 'Economy' started by Trajan, Nov 28, 2011.

  1. Trajan

    Trajan conscientia mille testes

    Jun 17, 2010
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    The Bay Area Soviet
    And there it is. California in a sense has won. The threat to enact strict mandate ( stricter than this) was challenged by Auto makers, Bush however would not grant them a wavier so as to allow them to enforce their own standard, the EPA got creative, they worked to get Carbon Dioxide declared a pollutant and the admin. that, told the Auto makers, taking a one size fits all EPA rule is better than having to deal with a dozen set by states as Obama would be amendable to granting numerous sate waivers.

    The EPA estimates a cost of $157 Billion for compliance, yet lets keep in mind that their estimates are not complete and do not take into certain factors like subsidies, or what is the cost of having to discount vehicles the dealers gets stuck with?

    Based on the fact that sales of hybrids has been, to be kind, ‘spotty’, 3% of sales (and that has been declining btw.) Compliance will drive production of hybrids to at least 25% of all of these vehicles produced. So, I would quadruple that over the 14 years and several thereafter.

    I have posted this before and will do so again (this is an encapsulation from Kelly and JD Power- there are 2 lines or I should say price points amongst car makers, the benchmarks are $15,000 and $30,000. $15K and under being the lower end scale, the everyday joe car, not much or new credit history ? A mere 2 grand down will get you car NEW car or light truck in that range ….the 30K mark is considered luxury from there on up.

    This will basically suffocate the 15K market in the womb. Of course they don’t have to have a 15K or under vehicle, folks in that range will just buy used, those nasty old fossil fuel dinosaurs, basically making the whole point moot, but since when has that ever stopped the government? Seems kind of regressive.

    I don’t know, congress tried to pass a green house bill with all sorts og goodies like this included (Waxman-Markey in 2009) , democratic house and senate majorities rejected it.
    Further, the mass of these vehicles may have to shrink as much as 15-25% etc.

    And old fashioned me, I like having folks responsible for this type of ( what should be) legislation in positions that require elections etc. ;)

    * NOVEMBER 28, 2011

    Here's one good way to consider the vote in 2012: It's about whether to re-elect President Lisa Jackson, the head of the Environmental Protection Agency, which these days runs most the U.S. economy.

    The EPA heaved its weight against another industry this month, issuing a regulation to sharply increase fuel economy. Under this new rule, America's fleet of passenger cars and light trucks will have to meet an average of 54.5 miles per gallon by 2025, a doubling of today's average of about 27 mpg. By the EPA's estimate the rule will cost $157 billion, meaning the real number is vastly greater.

    The fuel-economy rule is classic Obama EPA. Until this Administration, fuel standards were the remit of Congress, via its Corporate Average Fuel Economy (CAFE) program. In 2007, the legislative branch raised those standards with a bill requiring the U.S. fleet to hit 35 miles per gallon by 2020, a 40% increase. The industry is struggling to keep pace with those steep requirements.

    more at-
    Review & Outlook: The United States of EPA -

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