http://thehill.com/blogs/e2-wire/677-e2-wire/122115-administration-proposes-possible-62-mpg-fuel-standard

Administration may propose raising fuel efficiency standard to 62 mpg by 2025

By Darren Goode - 10/01/10 12:57 PM ET

The Obama administration is proposing to raise federal fuel efficiency standards for cars and light trucks to at least 47 miles per gallon and to as much as 62 mpg by 2025.
The proposal, which is still in its early stages, could end up being a consolation prize for environmental activists who are still smarting over the collapse of a comprehensive climate bill in Congress.

The National Highway Traffic Safety Administration (NHTSA) and Environmental Protection Agency (EPA) are filing a notice Friday indicating they will issue a joint proposed rule next year that will require an increase in fuel efficiency anywhere in that range starting with 2017 vehicle models.

It also includes a proposed range for reducing carbon emissions from tailpipes of between 3 to 6 percent annually, according to environmental activists who have been briefed by administration officials. “We think the administration’s proposal shows a lot of promise,” said Roland Hwang, transportation director of the Natural Resources Defense Council. “Of course we’re urging the administration to take advantage of this huge opportunity."

Dave McCurdy, the head of the Alliance of Automobile Manufacturers, said in a statement that the potential range in fuel efficiency and carbon reduction limits “are based on very preliminary and incomplete data at this point, and inevitably will change as more information is brought to the process.”

Friday's notice of intent is merely the first of several steps the administration will take before a final rule is issued in July 2012. There will be a second notice of intent issued by Nov. 30 that will more directly examine the impact the proposed fuel efficiency and carbon reduction range would have on automakers.

The administration plans to issue an actual proposed rule in September of next year.

Federal fuel efficiency and carbon reduction standards for cars and light trucks were implemented earlier this year for model years 2012 through 2016. Starting in 2012, automakers must improve the average fuel economy of their light-duty vehicles roughly 5 percent annually and reduce tailpipe emissions by 5 percent. The average fleetwide fuel efficiency standard in 2016 will be roughly 34 mpg.

Green groups argue that the low end of the range — 47 mpg and a 3 percent improvement in carbon tailpipe emissions — is not enough, and are pushing for the top end of the proposed range.

A joint cost analysis by EPA, NHTSA and the California Air Resources Board (CARB) shows that, if the 62 mpg mandate were implemented, the average price increase for vehicles would be between $2,800 to $3,500 in 2025, according to one activist. But that extra cost would be paid back with fuel savings within three to four years, the activist said.

CARB participated in the cost analysis because California has its own landmark tailpipe emissions and fuel efficiency standard.

A notice of intent for fuel efficiency and carbon reduction standards on heavy-duty vehicles is expected to be issued later this month.

Administration officials are doing a round of briefings Friday on the proposed fuel efficiency and carbon reduction ranges.

Officials on the call with environmental groups were Gary Guzy, deputy director of the White House Office of Environmental Quality; Margo Oge, EPA’s transportation and air quality chief; NHTSA Chief Counsel O. Kevin Vincent; and an aide to White House climate and energy czar Carol Browner. They briefed others Friday as well, including labor groups and automakers.