Trade Resources Policy & Opinion Obama Is Giving Federal Agencies Slightly More Than One Year to Draft a Rule Proposal

Obama Is Giving Federal Agencies Slightly More Than One Year to Draft a Rule Proposal

President Obama is giving federal agencies slightly more than one year to draft a rule proposal that would boost fuel economy and tighten greenhouse-gas emissions for medium- and heavy duty trucks.

Obama directed the National Highway Traffic Safety Administration and the Environmental Protection Agency to release by March 2015 a follow-up set of fuel economy standards to those adopted by the White House in 2011. That law applies to model-year 2014 through 2018 trucks, and calls for a 20% reduction in greenhouse-gas emissions and fuel consumption by 2018.

The White House projects that the initial round of standards will save 530 million barrels of oil and reduce GHG emissions by about 270 million metric tons, which could save vehicle owners and operators an estimated $50 billion in fuel costs over the lifetimes of the vehicles.

Obama, speaking Feb. 18 at a Safeway Inc. distribution center in Maryland, also suggested offering tax credits to manufacturers of clean vehicles and to fuel-stop operators selling clean fuels. While the fuel standards can be done within the executive branch, changing the tax code would require congressional action.

Obama was accompanied by Transportation Secretary Anthony Foxx and EPA Administrator Gina McCarthy. The president did not specify timing for when the new rule would take effect.

Source: http://www.ttnews.com/articles/lmtbase.aspx?storyid=2704&t=Obama-Details-MPG-Plan-for-Trucks
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Obama Details MPG Plan for Trucks
Topics: Transportation