U.S. To "Lead The World In Clean Car Development," Says Granholm

By Miles Wolf Tamboli
Talk Radio News Service

"I believe we need to seize the momentum following last month's historic new fuel economy and greenhouse gas emissions standards, and I believe President Obama's announcement today does just that," said U.S. Transportation Secretary Ray LaHood on Friday, following the President's announcement and signing of a memorandum pledging to place stricter regulations on auto emissions for medium and large-size trucks.

During a conference call with reporters, LaHood and Environmental Protection Agency (EPA) Administrator Lisa Jackson advocated last year's National Fuel Efficiency Policy, which requires that cars and light trucks reach an average fuel economy of 35.5 gallons per mile by 2016. Michigan Governor Jennifer Granholm (D), who joined in the call, called the policy a "win-win-win" agreement, and attributed the recent economic recovery of her state - whose unemployment rates were, she said, "spiraling out of control" in 2008 - to the legislation which was just finally passed this April. The policy put forth by the administration one year ago is designed to potentially save the nation 1.8 billion barrels of oil in coming years.

Granholm applauded the President's endeavors to create a "national standard," by which she hopes that Michigan may, "produce the best fuel efficient vehicles in the world." Jackson asserted that the President's new memorandum, "sets our nation on the path to lead the world in the development of clean cars."

Added LaHood, "We are laying the foundation for a cleaner, greener transportation sector. This new and improved transportation sector will provide greater environmental benefits, reduce our dependence on foreign oil, and enhance America's competitiveness with a new generation of advanced electric vehicles."

Obama Administration Unveils New Fuel Efficiency Standards

The Obama administration introduced a new federal rule Thursday requiring cars and light trucks manufactured after 2016 to meet a fuel efficiency standard of 35.5 miles per gallon.

"The Clean Cars Program marks the first official action to control green house gas emissions from vehicles," Environmental Protection Agency (EPA) Administrator Lisa Jackson said during a conference call with reporters. "We expect to reduce green house emissions by the equivalent of 42 million cars over the life of the program."

A press release from Jackson's agency states that the standard will conserve nearly 2 billion barrels of oil throughout the life of the covered vehicles and will lower carbon monoxide emissions by 960 million tons.

Secretary of Transportation Ray LaHood highlighted the economic benefits of the requirement.

“These historic new standards ...[will] encourage new and emerging technologies,” said LaHood in a statement. "We will be helping American motorists save money at the pump."

While the rule takes full effect in 2016, auto-manufacturers will be required under the program to reduce green house emissions by approximately 5 percent annually starting in 2012.

President Obama outlines plan for energy independence

At a press conference today, President Obama signed the Executive orders on energy independence and outlined a plan for the future. The initiative provides for the creation of jobs through an effort to make buildings more energy efficient. It also provides incentives for fuel efficient cars to be designed and built in the United States. President Obama pledged to work with state governments rather than against them. In response to the 35,000 jobs lost today, the President said to not expect a quick fix. He went on to say that much work needs to be done, and these executive orders are the next step.

Automakers must "transform" energy, efficiency

Chairman of the House Select Energy and Global Warming Committee Edward Markey (D-Mass.) said that U.S. automobile companies are in trouble because of "their inability to move from Car 1.0 to Car 2.0 over the past half century. A business model premised on bigger cars, wider highways, and more oil is a failed equation."

At a hearing to discuss the potential automobile bailout's effect on energy independence, Markey said that these car companies should "use this moment as an opportunity to transform." He felt that "innovation and technological change over the long term" must be made a priority in the future for these companies.

The automobile industry is a "very cornerstone industry" in the U.S. said Rep. Candace Miller (R-Mich.). If they went bankrupt, Miller said it would have "a catastrophic effect on our economy." Miller praised the automobile industry as a lynchpin for creating the U.S. middle class.

Joan Claybrook, President of Public Citizen, felt that laws must be put in place to demand technological and energy-efficient improvements to ensure that auto industries sufficiently attempt these initiatives. She stated that the fuel efficiency required of 35 mpg by 2020 is a "meager provision."

"We're going to have these vehicles one way or the other," said Peter Morici, Professor of International Business at the Robert H. Smith School of Business at the University of Maryland, referring to more energy-efficient and higher gas mileage automobiles. He felt that the only question is whether these improved vehicles are going to be made in the U.S. or not. Morici thinks that these companies should be bailed out only if they agree to share their patents with their competitors for a small price.