New Plan for Clean-Energy Economy

It’s no more status quo on increasing fuel efficiency. For the first time ever there is a
nationwide standard for emissions of greenhouse gases. President Obama recently announced
plans that would require cars and trucks to jump from the current average of 25 mpg to 35.5
mpg by 2016, with passenger cars obtaining 39 mpg and trucks obtaining 30 mpg, depending on
the class and size. The plan also demands a one-third reduction in vehicle carbon-dioxide
emissions within the next seven years. Obama’s plan is expected to help break America’s
dependence on oil, reduce harmful pollution and move toward clean-energy economy. But it
comes at an initial price. The new standards are expected to add $600 to the cost of
manufacturing a new car, plus the already expected $700 tacked on to meet the
already-established 2007 Energy Act requirements. However, it is estimated that it would
take just three years to pay off this investment through better gas mileage, and would save
around $2,800 through better gas mileage for the life of the vehicle.