- New Emissions and Mileage Rules Target Greenhouse Gases
- April 13, 2010 | Author: Elena Babaeva Coradini
- Law Firm: Waller Lansden Dortch & Davis, LLP - Nashville Office
Bringing an end to the 30-year conflict between the regulators and automakers, new tailpipe rules, written jointly by the U.S. Department of Transportation and the EPA, were issued yesterday. The rules set new emissions and mileage standards that establish a combined fuel economy average for new vehicles of 35.5 miles per gallon by 2016. The rules are expected to cut emissions by 30% from 2012 to 2016.
This is really interesting with respect to vehicles that are moving in a more enviro-friendly direction:
The rule sets different mileage and emissions standards for different sizes of vehicles, and major manufacturers will have to meet increasingly stringent standards over the 2012-16 period. Vehicles that run exclusively on electricity, like the new Nissan Leaf and the forthcoming Chevrolet Volt for short trips, will be classed as zero-emissions vehicles, although there is a cap on the number of electric vehicles carmakers can claim credit for.
Small-volume automakers like Porsche, Jaguar, Aston Martin and Lamborghini will not have to meet the new standards immediately but must buy credits from large-volume carmakers who exceed the targets. By 2017, all car companies will have to come into compliance.
Cost of compliance for the rule is estimated at $52 billion for the industry over the five years of the program and benefits of $240 billion.