The recently signed deal in the US on fuel efficiency would reduce the country’s dependence on imported crude oil and support in fighting against the global warming.
Now the American automakers have to make their cars and light trucks more efficient that save fuel up to 40%. This objective needs to be achieved by 2020, as per the deal reached by the US Congressional negotiators on November 30, 2007, as reported by Nytimes.
The deal says that automakers in the US should meet the industry average of 35 miles per gallon for all kinds of cars and light trucks, including SUVs, by 2020. Another important part of the deal is to give five-year relaxation to carmakers who manufacture flex fuel vehicles.
As per the news published by Reuters, the US Congress House Speaker Nancy Pelosi said, “This landmark energy legislation will offer the automobile industry the certainty it needs, while offering flexibility to automakers and ensuring we keep American manufacturing jobs and continued domestic production of smaller vehicles.”
According to the industry experts, the deal was reached in view of spiraling global oil prices, creating troubles for presidential candidates who are vying for votes in corn-based fuels. Also, the government wants to reduce the country’s reliance on the oil imported from Mideast.
This deal, which is also known as energy package, is being viewed as a government constructive move towards curtailing emission of greenhouse gases that are major cause of global warming. The energy package would have substantial impact on the country’s highways, farms, factories, refineries and power plants. It is not confined to fuel economy rules that would completely transform the American auto industry but also include norms to encourage use of alternative source of energy. It would give prime importance to yield ethanol and other renewable resources.
Experts believe that the US government will have to confront issues that might come up due to use of corn for fuel production, leaving low levels to be used as food, impacting environment by using increased land for growing biofuels, and overcharge the taxpayers by raising ethanol subsidies.
According to a Research Analyst at RNCOS, “Currently, the US automobile industry is under strong pressure of low fuel efficiency. The energy package is one step towards making the country independent from import of oil from Middle East and to increase the fuel efficiency level.”
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