35.5 MPG by 2016 - New US Milage Standards

U.S. Issues Limits on Greenhouse Gas Emissions From Cars

[via The New York Times]

The federal government took its first formal step to regulate global warming pollution on Thursday by issuing final rules for greenhouse gas emissions for automobiles and light trucks.

The move ends a 30-year battle between regulators and automakers but sets the stage for what may be a bigger fight over climate-altering emissions from stationary sources like power plants, steel mills and refineries.

The new tailpipe rules, jointly written by the Transportation Department and the Environmental Protection Agency, set emissions and mileage standards that would translate to a combined fuel economy average for new vehicles of 35.5 miles per gallon by 2016. Most drivers will see lower mileage figures in actual driving.

The rules are expected to cut emissions of carbon dioxide and other heat-trapping gases about 30 percent from 2012 to 2016.

Officials said the program would save the owner of an average 2016 car about $3,000 in fuel over the life of the vehicle and eliminate emissions of nearly a billion tons of greenhouse gases over the lives of all regulated vehicles.

Reaching the new efficiency figure will add about $1,000 to the cost of the average new car by 2016, according to industry and government estimates.

The tailpipe rule reflects a truce between the auto industry and state and federal governments, which have been feuding over emissions and mileage standards since the 1970s. It is the first time the federal Clean Air Act has been applied to carbon dioxide and other global warming pollutants.

Energy Efficiency Investment Report by McKinsey & Company

In this report, McKinsey & Company offers a detailed analysis of the magnitude of the efficiency potential in non-transportation uses of energy, a thorough assessment of the barriers that impede the capture of greater efficiency, and an outline of the practical solutions available to unlock the potential.

The research shows that the U.S. economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste – well beyond the $520 billion upfront investment (not including program costs) that would be required. The reduction in energy use would also result in the abatement of 1.1 gigatons of greenhouse gas emissions annually – the equivalent of taking the entire U.S. fleet of passenger vehicles and light trucks off the roads.

Such energy savings will be possible, however, only if the United States can overcome significant sets of barriers. These barriers are widespread and persistent, and will require an integrated set of solutions to overcome them – including information and education, incentives and financing, codes and standards, and deployment resources well beyond current levels.

In addition to the above central conclusion, five observations will be relevant to a national debate about how best to pursue energy efficiency opportunities of the magnitude identified and within the timeframe considered in this report. Specifically, an overarching strategy would need to:

• Recognize energy efficiency as an important energy resource that can help meet future energy needs while the nation concurrently develops new no- and low-carbon energy sources
• Formulate and launch at both national and regional levels an integrated portfolio of proven, piloted, and emerging approaches to unlock the full potential of energy efficiency
• Identify methods to provide the significant upfront funding required by any plan to capture energy efficiency
• Forge greater alignment between utilities, regulators, government agencies, manufacturers, and energy consumers
• Foster innovation in the development and deployment of next-generation energy efficiency technologies to ensure ongoing productivity gains.