The Obama administration’s new proposal to double the fuel efficiency of cars by 2025 may cost up to $157 billion and add $2,000 to the price of passenger automobiles, according to two federal agencies.
In the proposed rule posted on their websites, the National Highway Traffic Safety Administration and the Environmental Protection Agency predict the administration’s new Corporate Average Fuel Economy (CAFE) standards would add an average of $2,000 to the price of each new passenger vehicle sold by 2025.
The NHTSA attributes the increased consumer costs to the price of developing new fuel-saving technology. However, the highway agency predicts the costs of the new standards would be offset by benefits of $419 billion to $515 billion.
President Obama said the rule, negotiated by the administration and a number of automakers in July, was a successful effort to reduce U.S. dependence on foreign oil.
The proposed rule would go into effect in 2017 and requires annual fuel-economy increases of five percent for cars. Ultimately, the rule would require automakers to reach an average of 55.4 miles per gallon for passenger cars by 2025. The current CAFE standard for 2011 is 30.2 mpg.
Light trucks like pickups and sport utility vehicles would only be required to raise fuel economy by 3.5 percent the first five years the rule would be in effect. After that, trucks would also be required to increase fuel economy by five percent a year.
Semi-trucks from model years 2014-2018 would have to achieve an approximate….
Read more from C.J. Ciarmarella at The Daily Caller.