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Vera Pardee

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Five Dirty Little Secrets Behind the U.S. New Vehicle Mileage Rules

Posted: 08/30/2012 5:16 pm

More fuel-efficient cars and trucks are critical to warding off the worst effects of climate change. So if you breathed a sigh of relief when you heard that the Obama administration finalized new gas mileage and carbon pollution standards for cars and trucks this week, you're not alone.

Average fuel efficiency of 54.5 miles per gallon by 2025 sounds pretty good, right? Surely such an aggressive mandate means that over the long run, the nation's fleet of cars and trucks will use less oil and spew less carbon than today, and Detroit's gas guzzler addiction will be just a bad memory.

Not so fast. If you read the fine print, you'll learn that things are not quite as green and clean as they seem. Let's uncover five dirty little secrets of the new mileage rules. Hint: Detroit was in on the deal from the start.

Secret #1: Not really 54.5 mgp. That number sounds good, but it's a fiction. About 5 mpg come from an air conditioning "credit" earned for stopping leaks of coolants with ultra-high warming effects. That lowers carbon emissions from the coolants -- which really should be banned outright -- but does nothing to increase mileage.

About another 3 mpg probably won't materialize because manufacturers will exploit other credits and "flexibilities" hidden like Easter eggs in the regulatory weeds. "Flexibilities" include, for example, the right to pay a penalty instead of meeting a standard. So make that about 47 mpg.

And once we're talking about real-world fuel efficiency -- what you and I achieve when we actually drive real cars on real roads -- the 2025 fleet will really clock in at mileage rates 20 percent lower than EPA's targets.

Secret #2: No mandate. Whatever the "standard" is, it's just a guess and not a mandate. Each car and truck model comes with its own mileage requirement, and every manufacturer must meet only whatever average standard correlates to the mix of vehicles it wants to build. So if Chrysler builds more Town and Country Minivans (more below on why that's a good bet), Chrysler can lower its average fuel efficiency requirement. Multiply that effect across the industry and the 2025 national average may look nothing like 47 mpg.

This problem could easily be fixed by setting a backstop -- a minimum mileage number manufacturers must meet regardless of fleet mix. But there is no backstop.

Secret #3: More total carbon pollution and oil consumption. Forty-seven mpg is much better than current standards, so surely we'll use less oil and reduce pollution? Well, no. By 2025 and thereafter millions more Americans will drive millions more cars and trucks. Over the long run, these additional "vehicle miles traveled" will more than offset the improvements the standards bring, and we'll be using more oil and pumping out more carbon. True - without the standards it would be far worse. But "less bad" isn't what we're aiming for. To avoid heating the planet by more than 2 degrees Celsius, we must significantly reduce total carbon emissions by the end of this decade and not let it go up thereafter.

It doesn't have to be this way. Vehicles are the low-hanging fruit in the fight against carbon from the transportation sector. Their emissions amount to about 19 percent of total U.S. carbon emissions; decreasing these has the greatest short-to mid-term effect. The administration analyzed an alternative standard, at 69 mpg, that would have achieved oil savings and carbon reductions over the long term. The technology to reach 60-plus mpg exists today or is on the drawing board, and the additional costs would have been more than offset by savings in gasoline purchases alone, never mind counting any environmental benefits.

Secret #4: More SUVs and trucks. How many single drivers pull up for lattes in all-terrain, heavy-duty SUVs made for eight people? Slick marketing may have made gas-guzzlers sexy, but the situation was exacerbated by years of mileage rules that favored SUVs and trucks, creating what's known as the SUV loophole.

The new standards exacerbate the SUV loophole, rewarding SUVs and trucks with exemptions, credits, and other give-aways. Incredibly, efficiency requirements are up to one-third less stringent for these vehicles than for cars during the earlier years covered by the rule. Because automakers will install the fewest efficiency upgrades in the least efficient vehicles, the efficiency gap between them and lighter cars will get worse. And, because this makes them cheaper to build and more profitable, it's a good bet that Detroit will sell a lot of them.

Secret #5: No innovation incentive. The bottom line is that these standards are undemanding. They require no technical leap or cutting-edge inventions, and they will not make the U.S. more competitive in world markets. At 47 mpg by 2025, we'll be behind the European Union, Japan and China: Five years earlier, in 2020, they'll have reached 64.8 mpg, 55.1 mpg, and 50.1 mpg, respectively.

The U.S. standards are overwhelmingly based on incremental improvements of technologies already in existence. New developments such as fuel cell technology are encouraged by means of credits, but getting those credits is completely voluntary. In the mean time, Honda, Toyota and Mercedes already plan to commercialize fuel cell vehicles within a few years.

When President Kennedy called for the U.S. to reach the moon, it took us eight years to invent, build and use the rockets that got us there. By comparison, the technological ambition behind the 2025 mileage standards is like spending 13 years to put a new coat of asphalt on the launch pad.

To protect our planet, we've got to do much better.

 
FOLLOW GREEN
More fuel-efficient cars and trucks are critical to warding off the worst effects of climate change. So if you breathed a sigh of relief when you heard that the Obama administration finalized new gas ...
More fuel-efficient cars and trucks are critical to warding off the worst effects of climate change. So if you breathed a sigh of relief when you heard that the Obama administration finalized new gas ...
 
 
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11:54 AM on 09/04/2012
No matter who is president, gas is going to go up. There is a finite supply. We are probably at peak oil right now. It will not be long before it is $5, then $6. Hopefully, people will get smart and seek out higher mileage cars.
07:28 AM on 09/05/2012
Good point. The economics of steadily rising gasoline costs will solve the SUV loophole -- at $8 per gallon (Norway is approaching that right now) SUV's will be a luxury only the foolish can afford. But trying to mandate improved gas mileage is a fool's errand. It was tried during the Nixon years, and then again each time there was a fuel crisis of some sort, and it never worked. What has worked has been the rising cost of gasoline. The market is more efficient than the government.
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Carol Green
02:18 PM on 09/01/2012
Raise gas taxes so that Americans pay what Europeans and Australians pay for their gas... about $8.00 to $10.00 per gallon. You'll see big changes in conservation if that occurs. And the extra money gained from taxes can be used for high-speed passenger rail service EVERYWHERE. We are so behind the rest of the civilized world when it comes to transportation it's ridiculous.
07:46 AM on 09/01/2012
Raise the price of fuel to $6.00 per gallon and you will see a lot of people voting for better milage.
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maclfam
08:28 PM on 08/31/2012
One problem is getting corporate and rental fleets to use their buying power to demand improved efficiency. I was involved in managing a service fleet for a Fortune 500 company; it drove me crazy that service vehicles get terrible mileage, and no one screams. I did, improved the efficiency of my part of the fleet, but the selection is terrible and the best get much less than 25 MPG, and most struggle to hit 15. Ridiculous.
12:46 PM on 08/31/2012
Clearly, government has a role to play in causing auto manufacturers to improve the fuel efficiency of their products, and I think our government has not done enough in that regard. However, I also think that in the not too distant future economic factors are likely to play at least as large a role as government regulations in forcing auto manufacturers to provide us with more fuel efficient vehicles.

The worldwide demand for oil is increasing, which means that oil prices will remain relatively high for the foreseeable future. At the same time, the buying power of most Americans is going down due to the continuing effects of the financial meltdown and the long-term trends of offshoring jobs and transitioning to a society with a smaller, less affluent middle class. As a result, while those at the higher end of the income scale may continue to provide a market for gas guzzling SUVs, the vast majority of Americans will be forced to seek out cheaper means of transportation. For those in urban areas, that will mean greater use of public transportation. For those in the suburbs, it will mean having to use cheaper cars that are highly fuel efficient.

Even though some of the current ads for US-made vehicles emphasize their fuel efficiency, it will be interesting to see from their future decisions whether the US manufacturers really understand the need to provide complete fleets of fuel efficient vehicles. If not, their long-term survival is in doubt.
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maclfam
08:23 PM on 08/31/2012
It's amazing to me that people will adapt their financial practices to drive a big car. At $4/gallon, there is powerful incentive to downsize your everyday vehicle. When you do the math, it makes sense for most people to drive a fuel efficient car and rent a truck on the rare occasions that you need it.
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Heroldness
from the frozen Northland
05:15 PM on 09/02/2012
I'll admit it, I'm part of the problem. I drive a truck that gets crappy gas mileage. It's not that I really wanted one but I owned a camping trailer that although is considered a "feather weight", it was to heavy to be pulled by a minivan. I'm also a avid gardener and having mulch delivered is expensive and very messy in a minivan. Most of the time it sat in the driveway while we drove our more gas efficient vehicle. However, since my divorce and given the fact that the truck was mine it's all I have and financially I can't afford to get rid of it yet so I just don't go far in it. I still garden and I am about to move and owning this is still cheaper than paying someone else for their services. When I figure out a better way, the truck will go but until then, I'm stuck with it.
05:12 PM on 09/04/2012
As far as I am concerned, it only makes sense for someone to own a truck or other low-mileage vehicle if that vehicle is necessary for the owner's work or for the maintenance of the owner's property.  That includes not just people who need to carry tools and/or materials to a job site, but real estate agents and others who need to drive clients around.  However, it certainly doesn't include a lot of the people who currently own and drive low-mileage vehicles. 
PROGRESSISGOOD
Without Economic Justice, There Is No Justice!
12:02 PM on 08/31/2012
Many people drive SUV's for the increased safety performance for themselves and their families. They are willing to pay the extra in gasoline costs for that added safety.

If you want to change consumer buying behavior to use less gasoline, raise the taxes on gas. That will encourage savings. Use that extra tax revenue to fund other forms of transportation that are less reliant on fossil fuels.

Mandating increased mileage in the CAFE standards will not drive sales.
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Wally Parnel
08:34 PM on 08/31/2012
News Flash..SUVs are not safer vehicles. Rollovers are up 150% over the last 15 years. They are a danger to everyone on the road. There handling is sloppy, unsafe in rain, top heavy, poor visability.
Want a safer vehicle, junk your SUV. Get a car. Buy a truck for hauling stuff, when you need it, or just rent a truck, when you need it.
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niumarmion
a temporary being
09:40 PM on 08/31/2012
The best way to increase safety is to reduce speed. Reduced speed increases one's reation time to avoid dangerous events. People who drive gas guzzling SUVs generally drive faster than the flow of traffic and are more inconsiderate drivers.
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Swampy Marsh
Your micro-bio is empty
10:45 AM on 08/31/2012
I would love to have a high MPG car, but with two kids and two dogs its impossible...that being said, I still have to believe it's possible for a 6 cylinder engine to get 30+ MPG. I used to have a Pontiac Bonneville that easily averaged over 30 MPG and that's a good sized car, why don't they put that same engine into the midsize and smaller SUVs?
nothingchanges
too soon old, too late smart
07:45 AM on 08/31/2012
In 1984 you could go into your local Honda dealership and buy a Civic CRX that was EPA rated at 51mpg city, 67 mpg highway.

NOW?

Best "gas powered" fuel economy for U.S. cars..............about 40 mpg.

It doesn't even take new technology.

It CAN be done.

It HAS been done.

WHY isn't it being done NOW?

Hint................automobile manufacturer's AREN'T in the business of making cars. They're in the business of making profits. Their highest priority is to sell you what is most profitable for them. Not for you, our society, or the environment.
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deweaver
Scientist, businessman, semi-retired
02:24 PM on 08/31/2012
Using politics with these standards is the best way to produce profits and prevent competition. Lots of regulations that benefit them will prevent Honda and others from out innovating them. This is the "crony capitalist" way.

Honda was also making a engine that complied with all the air pollution standards without a catalytic converter. That is when the big three got regulations forcing catalytic converters for all cars.
nothingchanges
too soon old, too late smart
02:45 PM on 08/31/2012
Thanks for the information, I wasn't aware of that, will have to look into it deeper.

I HAVE read that catalytic converters require "unburned gasoline" to function. Cuts down on fuel efficiency.
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Wally Parnel
08:39 PM on 08/31/2012
During the Carter Admin, the Dept of Transportation built a car that got 40 mpg, safe in an 80mph headon collison. It was shown all over the country. I have a brochure on it I got when I saw the car, plus news clipping on it. We can build better cars if we get the dangerous vehicles off the roads,SUVs, and innovate. Bettre milege is driving sales now, not gas guzzlers that pull tree stumps, and cross rivers. Higher gas taxes is the solution to all our having better, safer transportation options.
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4eva
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01:37 AM on 08/31/2012
Thank you. Very enlightening article.

Something else: The most damaging part of these so-called initiatives is they give the impression we can keep doing the same things we've been doing by eeking out a little more efficiency here and there. This kicks the real problems under the rug instead of facing them head on, which of course no one wants to do.
03:57 AM on 08/31/2012
Well, she did not mention (according to German analysis) Secrets #9 and #10 (whatever you make out of it):

#9 If you look at the whole policy (including the exemptions) it's targeted precisely to give Chrysler, Ford and GM the advantage because exemptions concern SUVs and and exactly those kinds of "Green" propulsion that these three offer (natural gas and electric). Diesel on the other hand, which is quite common with trucks and other cars by European automakers and which is preferable over regular gas, is not included.
So, it is seen as a protective matter to keep/ get "the Americans in, the Japanese down and the Europeans out".

#10 Silent winner will be Honda as they are the only ones (outside the US) offering natural gas propulsion regularly so they can directly, within their global strategy and with their fleet, compete with the three US brands.
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kamact
Market Observer
11:08 PM on 08/30/2012
I continue to be disappointed by almost anyone in the US government...and in opposition to everyone on Wall Street...
09:45 PM on 08/30/2012
Some of the greatest cars ever made were manufactured in the '50's and 60's. One was the 1969 Mercury Cyclone - 429 cubic inch Ford engine, 500+ horsepower! There were several great cars then: stylish, powerful, and reliable. No other country could come close to US car makes. Then the government and other agencies (insurance companies) put all kinds of regulations on the car manufacturers and things went down hill completely. With a few exceptions, Camaro, Corvette, Cadillac, Mustang, and Challenger, most cars are dull, unimaginative with 4 cylinder sewing machine motors that try to look like foreign cars. It has been proven that good fuel mileage, attractive design, and high horsepower can all be attained. It has been done. The US car companies can once again attain the excellence that we saw long ago and sales will skyrocket. There is nothing like the sound and feel of a 300 horsepower automobile.
PROGRESSISGOOD
Without Economic Justice, There Is No Justice!
12:04 PM on 08/31/2012
Yes true, but our air was unbreathable and our rivers kept catching on fire back then as well!
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maclfam
08:19 PM on 08/31/2012
But those cars cranked out pollution (i grew up near Boston, and still remember the brown haze that hung over the city in the early 60's). Asbestos brake linings filled the air with friable asbestos dust. Air conditioners leaked Freon. Mechanical distributors were inefficient and unreliable by today's standards. Many of those cars quickly turned to rust buckets in the Northeast winters. But i agree with your message: the technology exists to make attractive, economical, and enjoyable cars.
08:05 PM on 08/30/2012
Don't get me wrong ... I like Obama, and whatever his limitations as an "environmental" president, he's waaay better than the opposition. But still, this is disappointing to read about
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ogis
powerdown baby powerdown
07:08 PM on 08/30/2012
"When President Kennedy called for the U.S. to reach the moon, it took us eight years to invent, build and use the rockets that got us there."

Easy to be skeptical of the moon landings judging from how boneheaded the usa is these days !!
06:46 PM on 08/30/2012
This may come to a shock to the "green" people out there but Americans do not want to drive "puddle jumpers ". Americans like a more substantial vehicle under their rumps (which you may have noticed aren't getting smaller on average). Let's conserve where we can but don't let your eyes glaze over where common sense is often absent.
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4eva
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01:41 AM on 08/31/2012
That's true. Government intiatives are not likely to change anyone's mind. Americans are not going to change their habits unless forced to do so by circumstances ... like less and less CHEAP oil and oil products.

We'll always have oil, but it won't always be as cheap as it has been these last 100 years or so.
We will adapt, we always do.
10:09 AM on 08/31/2012
Saw a smart car after an accident on the freeway with a pick up truck a couple of months ago. Needless to say, the Smart car, and the driver, lost. No matter what people want, physics will always win out. I drive 40,000 miles a year and if and when I get hit, I want to be on the winning side of physics. Small cars that gt great gas mileage are great up to the point yu get crushed by the larger vehicle.
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deweaver
Scientist, businessman, semi-retired
02:31 PM on 08/31/2012
Good engineering can win over big iron designs. Look at Formula 1 race cars. Try hitting a wall in your SUV monster at 150 mph or even 65 mph -- which would you rather be in?

Good design beats big iron any time.
06:11 PM on 08/30/2012
Check out the 2014 VW diesel/electric featured in Road & Track recently.
I know, it doesn't look like a "traditional car", and it isn't a muscle car designed to attract female attention when you peel out at the Dairy Queen.

But the mpg is much, much better than the 2025 mileage standards, and does not depend on regulatory fudge and waffle.
ThinkCreeps
Seriously, it's time.
07:10 AM on 08/31/2012
Perhaps you should seek female attention somewhere more highbrow than Dairy Queen.
Any european turbodiesel is nearly at the 2025 targets already.
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deweaver
Scientist, businessman, semi-retired
02:37 PM on 08/31/2012
To get the mileage improvements a gas/oil tax will do far more than any silly political / crony capitalist standards can every achieve.

Gasoline engines can get almost the same efficiency as diesel, if you had fully variable (electronic) valve timing combined with a fully variable transmission so the gasoline engine was operated at full throttle all the time and the power output controlled by changing the engine RPM.