Maximizing Fuel Efficiency
for Cars and Light Trucks
National policies that promote fuel efficiency are
important for several reasons. They can:
n Reduce U.S. dependence on foreign oil.
n Spur investment.
n Promote innovation.
n Lower the emission of harmful pollutants.
They can also enhance the nation’s competitiveness
in the global clean energy economy. Committing to
strong national fuel-efficiency standards of up to 60
1
PHOTO: DAVID PAUL MORRIS/GETTY IMAGES NEWS
mpg by 2025 would yield benefits that strengthen our
economic, national and environmental security far into
the 21st century.
Recent Gains in Fuel Efficiency
In 2007, President George W. Bush approved the first
increases in fuel-efficiency standards for cars and light
trucks in more than 30 years, requiring automakers to
boost fleetwide gas mileage to 35 mpg by 2020. In
2009, in an agreement with automobile manufacturers,
President Barack Obama accelerated federal fuel-
efficiency standards, requiring automakers to meet
a fleetwide average of 35.5 mpg by 2016, which will
www.PewEnvironment.org/CleanEnergy
PHOTO: OWI-DIASIGN
save consumers an estimated $3,000 in fuel costs over
the life of their vehicle and reduce dependence on
oil by 1.8 billion barrels over the life of model year
2025 vehicles. To realize economic, national security
and environmental benefits and to provide market
certainty for vehicle manufacturers, it is critical to
adopt the most technologically feasible fuel-efficiency
standards for cars and light-duty trucks through 2025.
Heavy Reliance on Oil Costs Americans
Dollars, Puts Lives at Risk
Cars, trucks and mass transit in the United States
consume about 14 million barrels of oil a day—two-
thirds of the nation’s daily total. Of that, about 55
percent is imported, sending more than $1 billion a
day to foreign countries, some hostile to U.S. interests.
Dependence on imported oil also places a significant
strain on American defense resources. In fact, the
Rand Corp. estimates that U.S. taxpayers spend $67
billion to $83 billion a year deploying troops on oil-
security missions.1 These missions are often to areas
of unrest, including the Middle East, which endangers
the lives of American military personnel.
Fuel Efficiency Saves Money
Cars and light-duty trucks account for 61 percent
of the total energy used for transportation in the
United States, mostly in the form of gasoline.2 The
2
average American household spends approximately
$2,000 a year on gasoline, with daily U.S. gasoline
costs exceeding $1.3 billion; in addition, oil supply
disruptions in the Middle East and increased
competition from India and China for oil are likely to
push fuel costs higher.3 By 2030, world energy demand
is projected to grow by 55 percent, with India and
China accounting for nearly half of new demand.4
To blunt the economic, security and environmental
damage of increased reliance on foreign oil, the
Obama administration is expected to propose new
fuel-efficiency standards requiring annual fleetwide
increases of 3 to 6 percent for model years 2017
through 2025, which could save consumers up to
$7,400 in fuel costs over the life of a 2025 vehicle.5
Market Certainty Is Good for Industry
To help consumers realize these cost savings,
manufacturers need regulatory certainty to direct
research-and-development activities and investments
to develop advanced vehicle technologies. In 2009,
auto manufacturers partnered with federal and state
regulators to develop national fuel-efficiency standards
through 2016. Transportation Secretary Ray LaHood,
referring to proposed CAFE standards, said, “This will
be win, win, win; it will reduce reliance on oil, strengthen
energy security and mitigate climate change.”
Federal agencies are considering long-term national
fuel-efficiency standards of 47 to 62 mpg by 2025,
reflecting annual increases of 3 to 6 percent. Standards
are based on a fleetwide average, with varied
stringencies depending on vehicle size. This allows
manufacturers to sell a range of vehicles as long
as the fleet’s average meets the national standard.
Manufacturers are working with the Department of
Transportation, Environmental Protection Agency (EPA)
and the states to develop a national standard that
addresses fuel efficiency and greenhouse gas emissions.

Efficient Vehicles Reduce Pollution
Vehicles that run on petroleum products emit
significant amounts of greenhouse gases. Official
estimates indicate that carbon-dioxide emissions from
cars and light-duty trucks totaled 1.1 billion metric
tons in 2009, equal to the total emissions of 63 percent
of U.S. coal-fired electricity plants.6 Adopting the most
technologically feasible fuel-efficiency standards for
cars and light-duty trucks through 2025 can reduce
oil imports by 1.3 billion barrels over the life of model
year 2025 vehicles and prevent greenhouse gas
emissions by as much as 590 million metric tons, more
than half of the carbon dioxide emitted by cars and
light-duty trucks in 2009.7
1 Rand Corp. 2009. Imported Oil and U.S. National Security. P. 98. www.rand.org/pubs/
monographs/2009/RAND_MG838.pdf.
2 U.S. Energy Information Administration. Sept. 30, 2010. “Gasoline Explained.” www.eia.
doe.gov/energyexplained/index.cfm?page=gasoline_use.
3 The U.S. Energy Information Administration estimated that in 2009, Americans used
378 million gallons of gasoline per day. www.eia.doe.gov/energyexplained/index.
cfm?page=gasoline_use.
4 International Energy Agency. 2007. World Energy Outlook 2007: China and India Insights.
P. 42. www.iea.org/textbase/nppdf/free/2007/weo_2007.pdf.
Contact: Joe Dooley | Senior Associate, Clean Energy Program | Pew Environment Group
202-540-6309 | jdooley@pewtrusts.org
www.PewEnvironment.org/CleanEnergy
60 MPG by 2025
Since 1969, when Richard M. Nixon took office,
every U.S. president has stressed the importance of
energy independence; but this cannot realistically be
done without making the transportation sector less
reliant on foreign oil. To broadly deploy the most
fuel-efficient vehicle technologies and realize the
economic, security and environmental benefits of
energy independence, we must adopt national fuel-
efficiency standards of up to 60 mpg by 2025.
5 EPA and National Highway Traffic Safety Administration (NHTSA). Oct. 5, 2010. 2017-
2025 Light-duty Vehicle GHG & Fuel Economy Joint Notice of Intent and Interim
Technical Assessment Report. Briefing for the CAA MSTR Subcommittee. www.epa.gov/
air/caaac/mstrs/oct2010/4_charmley_tamm.pdf.
6 The EPA estimated CO2 emissions from cars and light-duty trucks at 1.1 billion metric
tons in 2009, compared with 1.7 billion metric tons for electricity produced through coal
combustion. See link in Endnote 2.
7 EPA and NHTSA. Oct. 5, 2010. See link in Endnote 5.
May 2011