U.S. Senate approves 35mpg by 2020 fuel standard

To the bane of carmakers around the world, the U.S. Senate has approved a new energy bill that will see average fleet fuel economy levels rise by 40% to 35mpg (6.7L/100km) by 2020. This is the first major change in the corporate average fuel economy program, or CAFÉ, since its implementation back in 1975. The first phase of the new standard will start with 2011 model-year vehicles.

The new measure is expected to receive its final vote in the House of Reps next week before being signed by President Bush and passed into law, reports Automotive News.

According to Senate Commerce Committee Chairman Daniel Inouye, the new standard will save more than one million barrels of oil a day by 2020. The U.S. currently uses roughly 21 million barrels a day, with about 8 million of them for cars and trucks.

One of the new standards opponents, Senator James Inhofe, criticized the standard saying it will create more dangerous vehicles as carmakers make vehicles smaller and lighter to reduce fuel consumption.