The recently signed deal in the US on fuel efficiencywould reduce the country’s dependence on imported crude oil and support infighting against the global warming. 

Now theAmerican automakers have to make their cars and light trucks more efficientthat save fuel up to 40%. This objective needs to be achieved by 2020, as perthe deal reached by the US Congressional negotiators on November 30, 2007, asreported by Nytimes  .

The dealsays that automakers in the US should meet the industry average of 35 miles pergallon for all kinds of cars and light trucks, including SUVs, by 2020. Anotherimportant part of the deal is to give five-year relaxation to carmakers whomanufacture flex fuel vehicles.

As per thenews published by Reuters  , the USCongress House Speaker Nancy Pelosi said, “This landmark energy legislationwill offer the automobile industry the certainty it needs, while offeringflexibility to automakers and ensuring we keep American manufacturing jobs andcontinued domestic production of smaller vehicles.”

According tothe industry experts, the deal was reached in view of spiraling global oilprices, creating troubles for presidential candidates who are vying for votesin corn-based fuels. Also, the government wants to reduce the country’sreliance on the oil imported from Mideast.

This deal,which is also known as energy package, is being viewed as a governmentconstructive move towards curtailing emission of greenhouse gases that aremajor cause of global warming. The energy package would have substantial impacton the country’s highways, farms, factories, refineries and power plants. It isnot confined to fuel economy rules that would completely transform the Americanauto industry but also include norms to encourage use of alternative source ofenergy. It would give prime importance to yield ethanol and other renewableresources.

Expertsbelieve that the US government will have to confront issues that might come updue to use of corn for fuel production, leaving low levels to be used as food,impacting environment by using increased land for growing biofuels, andovercharge the taxpayers by raising ethanol subsidies.

According toa Research Analyst at RNCOS, “Currently,the US automobile industry is under strong pressure of low fuel efficiency. Theenergy package is one step towards making the country independent from importof oil from Middle East and to increase the fuel efficiency level.”

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