I am putting more than $50 of gasoline into my mother-in-law’s humongous SUV (definitely not pictured above), and I start thinking, when will these gas guzzlers become a thing of the past?
The answer, it turns out, is 2016.
Lost in all the fireworks about the proposed health care legislation is the fact that the Obama administration is pushing ahead with an ambitious agenda of policy changes in other areas of the US economy. For instance, last week the House of Representatives passed legislation drastically changing how college students receive financial aid, when it voted 253 to 171 for the Student Aid and Fiscal Responsibility Act. This bill effectively ends federal subsidies for private lenders, leaving the government to directly handle all its student loans. Cutting out the middleman (private banks) is expected to save tax-payers $80 billion.
On the energy front the Obama administration has unveiled a plan to require better gas mileage for cars and trucks and groundbreaking rules regarding vehicle greenhouse gas emissions. Among the many provisions of the plan, this one stands out— the new standards call for the automobile industry’s fleet of new vehicles to average 35.5 miles per gallon by 2016.
Department of Transportation Secretary Ray LaHood and EPA Administrator Lisa Jackson released the proposed regulations at the White House, furthering President Barack Obama’s previous statements that he was going for a two-fer — a set of government regulations that would directly link emissions with fuel economy standards.
According to Jackson, the results of more restrictive emission standards would be the equivalent of taking 42 million cars off the road. The plan is expected to increase vehicle fuel efficiency by about 5 percent annually and reduce greenhouse gas emissions by about 950 million metric tons. In addition, the proposal will result in the saving of 1.8 billion barrels of oil.
Lest opponents see this proposed legislation as too radical, it should be noted that the new standards have been on the books since they were voted into law in 2007. All the Obama administration is doing is tightening up the timeline, pushing the deadline to four years earlier than the 2007 law that would have required the automobile industry to meet a 35 mpg average in 2020.
Now, why the rush?
In part it buys the Obama administration some more time for coming up with more ambitious plans to curb greenhouse gas emissions. It gives the President something to show and tell at the next UN Climate Treaty gathering (more than 180 nations in Copenhagen, Denmark, in early December). The Europeans are pushing hard for the US to show more leadership on Global Climate Control issues, and the President’s largest environmental and energy proposal, the “Cap and Trade ” Plan, is bogged down in the Senate.
He can also show another measure of good faith. The Administration paid out more than $2.9 billion for the Cash-for-Clunkers program, under which auto dealers sold about 700,000 new vehicles in 30 days, replacing 700,000 older, lower miles-per-gallon vehicles.
At last. Just finished filling the mother-in-law’s SUV gas tank. Takes time, no?
I’m from Canada and from my perspective, I am impressed by how quickly Obama is able to put the US back on track. Although there is much resistance showed in the polls, the image of the country is improving internationally and this alone will help the economy.
This being said, it’s sad a bankruptcy was needed for GM before they realized they were off target with long term consumer tendencies. I’m glad fuel efficient cars are on their way.