In July 2011, the Obama administration announced the new Corporate Average Fuel Economy (CAFE) standards that will begin taking effect in 2017, when many of us will be entering our 20’s or 30’s.
Apparently, there is no downside to the new rules:
Officials claim the plan will save Americans $1.7 trillion in fuel costs by 2025. It is also expected to lower petroleum consumption by a total of 12 billion barrels and curtail the daily requirement by 2.2 million barrels a day (b/d) by 2025 (11% of current demand).
“These standards will help spur economic growth, protect the environment, and strengthen our national security by reducing America’s dependence on foreign oil. Working together, we are setting the stage for a new generation of clean vehicles,” Ray LaHood, U.S. Secretary of Transportation.
The U.S. energy system, however, contains great inertia, and several persistent trends will influence our energy economy well into the future.