President Trump Shreds Hussein Obama Fuel Mileage Regulation
The Environmental Protection Agency and National Highway Traffic Safety Administration jointly proposed Thursday to cap fuel economy requirements at a fleet average of 37 mpg starting in Y 2020. Under the Hussein Obama plan, the fleet-wide fuel economy would have risen to 47 mpg by Y 2025.
The change could mean a 2 to 3% increase in daily fuel consumption.
The projected increase of about 500,000 BPD in fuel demand comes as US consumption is holding near record levels. The Energy Information Administration (EIA) forecast in its latest Annual Energy Outlook that demand would begin to decline after this year, shrinking more than 2.5-M BPS by Y 2040.
The average price of US retail regular gasoline is about $2.87/gal, near a 3-year high reached in May, according to data from the American Automobile Association (AAA). The 4-week average gasoline demand has remained above 9-M BPD since February.
A 60-day comment period will begin once the proposal is published in the Federal Register, and a final rule could be finalized by the end of Y 2018 or early next year.
Have a terrific weekend
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