The USA is on way to imposing tougher fuel efficiency standards for its vehicles, which will also be implemented by Canada for its vehicles. The Obama administration has asked the Environmental Protection Agency (EPA) to get into action and regulate emissions from cars and other major polluters like power plants. EPA has finalized the rules along with the Department of Transportation, and the Congress is likely to pass the long-delayed bill soon.
Under the new bill, cars and trucks will be required to have an average fuel efficiency of 35.5 mpg by 2016. This increase would be quite high above the current standard of 25 mpg. EPA has also said that the CO2 emissions from vehicles will be limited to 250 grams per mile by 2016, a number that shows a 15% reduction from the emission standards in 2012.
The EPA says that the new regulations will add $52 billion in vehicle costs, but the benefits may near $240 billion, far outweighing these costs. Also, the new rules will reduce the USA’s greenhouse gas emissions by 900 million metric tons.