New rules on emissions, mileage carry upfront costs

President Obama took steps last week that may alter the automotive industry by requiring increased gas mileage and reduced greenhouse gas emissions. They also would make cars and trucks more expensive.

What Obama did

> Ordered the Department of Transportation to set new fuel standards by March 30, in time for automakers to roll them out in 2011 models.

> Directed the Environmental Protection Agency to review last year’s decision to prohibit California from enforcing its own vehicle emissions. Thirteen other states will follow California. The regulations would require improved gas mileage.

What it means to you

> Starting with the 2011 models, the cost to produce cars and trucks is expected to increase an average of $276 and $224, respectively, according to DOT. Retail prices may rise even more.

> It should cost less to drive to work and run errands, depending on gas prices. But people will drive more if mileage improves, resulting in more traffic and pollution, the DOT figures. The DOT estimated it would take four to five years to recoup the higher cost of cars and trucks through savings at the pump.

Gas mileage proposals

> Current gas mileage requirement: 25 miles per gallon for passenger cars, pickup trucks and SUVs.

> The DOT’s 2008 proposal: Increase to 27.8 mpg for 2011 models and 31.6 mpg for 2015 models.

> If approved, the California rule would require cars and trucks to get an average of 43 mpg by 2015.

WHAT THEY’RE SAYING

Obama

“Our goal is not to further burden an already struggling industry. It is to help America’s automakers prepare for the future.”

Automakers

“The alliance looks forward to working with Congress, the states and the administration to help bridge competing fuel-economy proposals, set aggressive standards through 2015 and direct our efforts toward meeting a national standard of at least 35 miles per gallon by 2020.”

DAVE McCURDY

president and CEO of the Alliance of Automobile Manufacturers

Libertarians

“There are plenty of cars out there that get these mileage standards, but Americans have chosen not to buy them because they’re less safe, lighter, and they’re not amenable to their lifestyle.”

TIMOTHY LEE

director of legal affairs for the Center for Individual Freedom

Environmentalists

“As Atlanta continues to struggle with unhealthy levels of air pollution, generated in large part by the millions of cars and trucks that drive on city streets every day, we hope that this movement will inspire leaders at the state and national level to bring cleaner cars to Georgia and other states that have not yet passed clean car standards.”

JENNETTE GAYER

Environment Georgia’s Policy Advocate

Sources: Obama’s Jan. 26 memorandums; National Highway Traffic Safety Administration’s 2008 analysis of fuel economy standards; the California Air Resources Board 2008 assessment of proposed greenhouse gas reductions.