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For Immediate Release:
5/31/2006
For More Information:
Contact Danielle Korpalski
(734) 662-9797

“Dependence Day” Study Finds that Increasing Vehicle Gas Mileage Would Save Michiganders Over $770 Million at the Pump

Ann Arbor, MI— With gasoline prices hovering around $3 a gallon and Congress poised to vote on a proposal to increase automobile gas mileage standards to at least 33 miles per gallon (mpg), Environment Michigan marked “Dependence Day” by releasing an analysis by the Union of Concerned Scientists documenting the benefits of a 33 mpg standard and calling on Representatives Conyers and Schwarz to support it.

 

Dependence Day is the day each year when the U.S. will figuratively run out of domestic oil and be forced to rely on foreign imports for the remainder of the year.  In 2006, the U.S. will import nearly 60 percent of its oil, so we will effectively rely on foreign oil from May 31 until the end of the year. 

 

“The best way to break America’s oil addiction and save consumers money at the pump is to make our cars and SUVs go farther on a gallon of gasoline,” said Mike Shriberg, Environment Michigan’s Director.

 

As soon as the first week of June, the U.S. House of Representatives is likely to consider a bill introduced by Rep. Joe Barton (R-TX) that allows the Bush administration to re-structure the fuel economy program for passenger cars without guaranteeing that cars actually get better gas mileage.  Reps. Ed Markey (D-MA) and Sherwood Boehlert (R-NY) plan to introduce an amendment to the bill requiring an increase in the average fuel economy of cars and SUVs to at least 33 mpg by 2016.

 

“The good news is that we already have the technology to make our cars and SUVs get 40 mpg,” said Shriberg.  “We need Congress to put American and Detroit know-how to work to cut oil demand and save consumers money.”

 

The Union of Concerned Scientists (UCS) has estimated that increasing the fuel economy of cars and SUVs to 33 mpg by 2016 would reduce America’s oil demand by 500,000 barrels of oil per day in 2015 and 2.1 million barrels of oil per day in 2025. Nationwide, consumers would save at least $19 billion at the pump in 2015 and $79 billion in 2025. 

 

Here in Michigan, consumers would enjoy net savings of at least $770 million at the gas pump in 2016, according to the UCS analysis. 

 

Environment Michigan called on Representatives Conyers and Schwarz to support the Markey-Boehlert amendment and to oppose any fuel economy bill that does not set a specific target increase in gas mileage standards.

 

“If Representatives Conyers and Schwarz are serious about reducing America’s dependence on oil and saving consumers money at the pump, it’s time to support real action to make our cars go farther on a gallon of gas,” stated Shriberg. 

 

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Environment Michigan – the new home for PIRGIM’s environmental work – is a non-profit, non-partisan environmental advocacy organization with over 10,000 members throughout the state.


Table 1: Projected Consumer Savings from Raising Fuel Economy Standards to 33 mpg by 2016

 

 

State

Fraction of National Gasoline Use

Annual Net Consumer Savings in 2016

(million dollars per year)

 

State

Fraction of National Gasoline Use

Annual Net Consumer Savings in 2016

(million dollars per year)

Alabama

1.80%

365

Nebraska

0.60%

122

Alaska

0.20%

41

Nevada

0.70%

142

Arizona

1.90%

385

New Hampshire

0.50%

101

Arkansas

1.00%

203

New Jersey

3.00%

608

California

11.30%

2,290

New Mexico

0.70%

142

Colorado

1.60%

324

New York

4.30%

872

Connecticut

1.10%

223

North Carolina

3.10%

628

Delaware

0.30%

61

North Dakota

0.30%

61

Dist. of Col.

0.10%

20

Ohio

3.90%

790

Florida

5.80%

1,176

Oklahoma

1.40%

284

Georgia

3.60%

730

Oregon

1.10%

223

Hawaii

0.30%

61

Pennsylvania

3.90%

790

Idaho

0.50%

101

Rhode Island

0.30%

61

Illinois

3.90%

790

South Carolina

1.70%

345

Indiana

2.40%

486

South Dakota

0.30%

61

Iowa

1.10%

223

Tennessee

2.20%

446

Kansas

1.00%

203

Texas

8.20%

1,662

Kentucky

1.60%

324

Utah

0.70%

142

Louisiana

1.70%

345

Vermont

0.30%

61

Maine

0.50%

101

Virginia

2.90%

588

Maryland

1.90%

385

Washington

2.00%

405

Massachusetts

2.10%

426

West Virginia

0.60%

122

Michigan

3.80%

770

Wisconsin

1.90%

385

Minnesota

2.00%

405

Wyoming

0.20%

41

Mississippi

1.10%

223

 

 

 

Missouri

2.30%

466

 

 

 

Montana

0.40%

81

United States

 

20,268

 

Source: Union of Concerned Scientists.  Gasoline use data for 2001(Energy Information Administration State Energy Data 2001 Consumption tables, 2005. http://www.eia.doe.gov/emeu/states/_use_multistate.html).  Consumer savings based on predicted future consumption levels and other national results assuming a gasoline price of $2.50 and vehicle purchases financed over five years at 5% interest.