Obama speaks about bold new national vehicle fuel standards

On Friday, President Barack Obama spoke to a gathering of stakeholders to announce his plans to reduce greenhouse gas emissions, increase fuel efficiency standards and reduce dependence on foreign oil.

The President addressed a group of representatives from the auto companies, UAW employees, environmental leaders, union representatives and members of Congress in Washington D.C.

“For decades, we’ve left our economy vulnerable to increases in the price of oil. And with the demand for oil going up in countries like China and India, the problem is only getting worse. The demand for oil is inexorably rising far faster than supply. And that means prices will keep going up unless we do something about our own dependence on oil. That’s the reality,” said Obama.

The new fuel efficiency plans will require all American automakers to average nearly 55 miles per gallon for their cars and light duty trucks. The president said that this would save Americans significant dollars at the pump over the coming years.

“Think about what this means. It means that filling up your car every two weeks instead of filling it up every week. It will save a typical family more than $8,000 in fuel costs over time. And consumers in this country as a whole will save almost $2 trillion in fuel costs. That’s trillion with a T,” said the President.

The President talked about the long term as well as the short term. He said that while it may take over a decade for the auto industry to reach these new fuel standards there are things that can be done relatively soon to help other areas of the country, particularly the green economy, grow.

“But while we’re at it, we need to get rid of, I think, the $4 billion in subsidies we provide to oil and gas companies every year at a time when they’re earning near-record profits, and put that money toward clean energy research, which would really make a big difference.”

The president also used the opportunity to briefly touch on the budget and debt debate that has been raging in Washington.

“So as we look to close the deficit, this agreement is a reminder of why it’s so important that we have a balanced approach. We’ve got to make serious spending cuts while still investing in our future; while still investing in education and research and technology like clean energy, which are so important for our economy.”

Rep. Sander Levin (D-MI) sent out a press release outlining his thoughts on the Presidents landmark idea.

“The agreement is ambitious. By any yardstick, the agreement represents a significant increase in fuel economy that will dramatically reduce oil consumption and greenhouse gas emissions and save consumers money at the pump.”

“The last year has seen a resurgence of the auto industry and it is vital that we continue the fight to build the cars of the future in the United States.”