Obama Administration Proposes New Environmental Labels for Vehicles

The Environmental Protection Agency and the Department of Transportation unveiled today a proposal to put labels on all new vehicles that compare vehicles’ greenhouse gas emissions and fuel economy. The goal is to compare the emissions and fuel economy of gasoline-powered vehicles and more efficient electric vehicles.

While this may not seem too exciting, it’s actually quite a big deal. In a statement today, the agencies called the move the “most dramatic overhaul in the label’s 30-year history,” and environmentalists and renewable energy advocates are banking on these new labels to change the way consumers buy vehicles. If the environmental impacts of a vehicle are in plain view, the logic goes, consumers will choose more fuel efficient cars. This change is certain to rankle some in the auto industry, who stand to lose a lot of money if consumers buying habits change quickly.

According to a joint EPA-DOT statement, here’s what the new labels will include:

EPA and DOT are proposing two new label designs for comment. One label design prominently features a letter grade to communicate the vehicle’s overall fuel economy and greenhouse gas emissions performance. The new design will also provide consumers with an estimate of the expected fuel cost savings over five years compared to an average gasoline-powered vehicle of the same model year.

The second proposed label retains the current label’s focus on miles per gallon (MPG) and annual fuel costs, while updating the overall design and adding the required new comparison information on fuel economy and emissions.

In the statement, EPA Administrator Lisa Jackson said:

New fuel economy labels will keep pace with the new generation of fuel efficient cars and trucks rolling off the line, and provide simple, straightforward updates to inform consumers about their choices in a rapidly changing market.  We want to help buyers find vehicles that meet their needs, keep the air clean and save them money at the pump.

The proposal has not yet been finalized and the agencies are currently accepting public input.