New Fuel Economy Standards

Fuel economy standards are about to go up for the first time in more than 25 years, the Detroit Free Press reports.

The newspaper says the Obama administration today will announce a combined car and light-truck fuel economy standard for the 2011 model year of 27.3 mpg., an increase of about 2%.

Under the plan, new cars will need to meet a 30.2 mpg standard, while light trucks, including SUVs, must hit 24.1 mpg. It reports that automakers say they can meet them easily.

The newspaper calls this a “placeholder” for a much-broader reworking of fuel efficiency rules later this year. The administration is required to set the standard before the end of the month under the 2007 energy law, it says.

The Detroit News reports that the proposal may anger some environmentalists, because the 2011 proposal doesn’t go as far as what the Bush administration proposed in April 2008.

The Free Press says the Bush administration decided not to issue its plan because of the high cost to automakers at a time of economic difficulties.