Report: NY, NJ to See Big Savings from Fuel Efficient Cars by 2025

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An increase in fuel efficiency standards to 54.5 miles per gallon by 2025 will save New York and New Jersey motorists big money, according to a new report by the Natural Resources Defense Council, an environmental group. New Yorkers will save almost $3 billion a year, while New Jersey residents will save $1.5 billion.

The report says increased fuel efficiency will cut U.S. oil consumption by 1.7 million barrels a day by 2030, the equivalent of the combined U.S. oil imports from Saudi Arabia and Iraq in 2011. It also says the average driver will save $4,400 per year, and cut carbon pollution by 297 metric tons, equivalent to the CO2 emissions of 76 coal power plants.

Alan Baum, of Baum and Associates, an automotive forecasting firm, said consumer demand for higher mileage vehicles is growing. “Before 2007 the expectation was that fuel prices would be low, and if they went up, that was the aberration.” Baum said on a conference call organized by the NRDC. “People in the 2005/6 period said, 'oh, okay, we’ve got a problem with whatever, political issues in the mid-east or supply shortages, etc. That’s a transitory thing and I’m not going to change my interest in fuel economy.’ From 2007 onward, it reversed.”

NRDC notes there were only five car models that got more than 30 mpg in 2009, before the White House announced new fuel standards. In the 2012 model year, there were 15 models.

Here’s a list of state savings calculated by the NRDC:

1) Texas:            $7.750 billion
2) California:       $7.270 billion
3) Florida:           $6.683 billion
4) New York:        $2.959 billion
5) North Carolina: $2.797 billion
6) Georgia:          $2.564 billion
7) Virginia:          $2.179 billion
8) Pennsylvania:  $2.004 billion
9) Tennessee:     $1.958 billion
10) Arizona:        $1.887 billion
11) Illinois:         $1.853 billion
12) Ohio:            $1.664 billion
13) Washington:  $1.547 billion
14) Maryland:      $1.529 billion
15) Michigan:      $1.520 billion
16) New Jersey:   $1.452 billion
17) Alabama:      $1.271 billion
18) Kentucky:      $1.207 billion
19) Missouri:       $1.207 billion
20) Minnesota:    $1.162 billion