EPA and DOT Mandate New Fuel-Economy Labels for Passenger Cars by 2016

On May 25, the U.S. Department of Transportation and the U.S. Environmental Protection Agency unveiled the most dramatic overhaul to fuel economy labels since the program began more than 30 years ago. Starting in 2013, the labels must appear on new passenger cars and trucks – including conventional gasoline-powered and “next-generation” cars, such as plug-in hybrids and electric vehicles. Automakers may also voluntarily adopt the new labels earlier for model year 2012 vehicles.

The new labels will for the first time provide:

New ways to compare energy use and cost between new-technology cars that use electricity and conventional cars that are gasoline-powered.

 Useful estimates on how much consumers will save or spend on fuel over the next five years compared to the average new vehicle.

Easy-to-read ratings of how a model compares to all others for smog emissions and emissions of pollution that contribute to climate change.

An estimate of how much fuel or electricity it takes to drive 100 miles.

Information on the driving range and charging time of an electric vehicle.

A QR Code (quick response code) that will enable users of smart phones to access online information about how various models compare on fuel economy and other environmental and energy factors. This tool will also allow consumers to enter information about their typical commutes and driving behavior in order to get a more precise estimate of fuel costs and savings.

The 2010 fuel economy rules, developed with input from major automakers, environmental groups, and the states – and  jointly written by DOT and EPA – set emissions and mileage standards that would translate to a combined fuel economy average for new vehicles of 35.5 miles per gallon by 2016, Officials said the program would save the owner of an average 2016 car about $3,000 in fuel over the life of the vehicle and eliminate emissions of nearly a billion tons of greenhouse gases over the lives of all regulated vehicles.

 In July, the Administration plans to finalize the first-ever national fuel economy and greenhouse gas emission standards for commercial trucks, vans, and buses built in 2014 to 2018. These standards are expected to save hundreds of millions of barrels of oil over the life of the vehicles covered and promote the development and deployment of alternative fuels, including natural gas. The Administration is also developing the next generation of joint fuel economy/greenhouse gas emission standards for model year 2017-2025 passenger vehicles, and expects to announce the proposal in September 2011.

“President Obama's work to shape a Clean Cars program is fostering a marketplace of cutting-edge American vehicles that are more fuel efficient than ever before. The EPA and DOT are creating a new generation of fuel economy labels to meet the needs of a new generation of innovative cars,” said EPA Administrator Lisa P. Jackson. “Today’s car buyers want the best possible information about which cars on the lot offer the greatest fuel economy and the best environmental performance. The new labels provide comprehensive information to American car buyers, helping them make a choice that will save money at the gas pump and prevent pollution in the air we breathe.”“Our new fuel economy and environmental labels are a win for automobile consumers and for the nation’s energy independence,” said U.S. Transportation Secretary Ray LaHood. “These labels will provide consumers with up front information about a vehicle’s fuel costs and savings so that they can make informed decisions when purchasing a new car.”

The McLean, Virginia based National Automobile Dealers Association (NADA) commented, “For decades, car and truck buyers have relied on miles per gallon – or MPG – to compare the fuel economy of different vehicles.  With gasoline spiking to over $4 a gallon and alternative-fuel vehicles hitting dealer showrooms, rolling out a totally unfamiliar ‘letter grade’ label would have only served to confuse and frustrate consumers.  NADA applauds the Obama administration’s decision to drop the ill-advised ‘letter grade’ in favor of one that prominently displays a vehicle’s MPG.  By doing so, car shoppers can make informed comparisons on dealers’ lots, allowing them to take advantage of new technologies, which will ultimately put more fuel efficient vehicles on the road. ”