Obama Proposes Bold Dual Standards for Automotive Fuel Economy and Emissions
By Scott Doggett, Contributor
President Obama today proposed new national standards that would accelerate increases in automotive fuel economy and impose the first-ever national greenhouse-gas emissions standards on cars and trucks.
"In the past, an agreement such as this would have been considered impossible," Obama said in a Rose Garden speech. "That is why this announcement is so important, for it represents not only a change in policy in Washington, but the harbinger of a change in the way business is done in Washington."
The proposed rules would respect the legal authority the Supreme Court has granted the Environmental Protection Agency to regulate greenhouse-gas emissions with the Department of Transportation's right to regulate fuel economy under the corporate average fuel economy program, while still preserving California's right to regulate air pollution under the Clean Air Act.
The proposed rulemaking would be a joint effort between the EPA and the Transportation Department and would mandate a 5 percent annual increase in fuel economy for model years 2012 through 2016. It would push the corporate average fuel economy, or CAFE, standard to a fleetwide average of 35.5 miles per gallon by 2016, four years ahead of the schedule Congress laid out in the 2007 Energy Law.
The new program would add about $600 to the price of producing a vehicle compared with the current law passed in 2007. White House officials said the fuel savings resulting from the new program would more than cover the $600 expense.
The president's plan would not specifically grant California the waiver it needs to enforce its own standards, but it would appear to make the EPA's forthcoming decision on the issue moot because both the state and Obama are seeking a 35.5 mpg fleetwide average by 2016.
The White House said that if the EPA does ultimately grant the waiver later, California has agreed to defer to the national standard through 2016 - and that if the waiver request is rejected, the proposal will move forward regardless.
In addition, the rulemaking would limit the amount of greenhouse-gas emissions from passenger cars and light trucks, the first-ever such standard for the vehicles. A draft of the rule has not yet been released, but a White House spokesperson said the limit would be set at 250 grams per mile per vehicle in 2016.
No Loopholes for Automakers
A senior administration official, speaking on condition of anonymity, said that all automakers that sell vehicles in the U.S. would be required to make more efficient and cleaner cars in "every single category."
"We do that by setting - by proposing - individual standards for each class size of vehicle and then a fleet average for each company," the official said. "This has the effect of preserving consumer choice. You can continue to buy whatever size car you like, all cars get cleaner."
In other words, if Obama's proposals remain intact, an automaker won't have the freedom to continue making the same 10-mpg sport utility vehicle year after year and relying on mileage improvements to other vehicles in its fleet to offset the SUV's lousy fuel economy.
"Under the old CAFE program, it was a fleet average and so you could offset your less fuel efficient cars by making more fuel efficient cars. What this says is it requires in each class size of vehicle that there are improvements made," the official said.
The new standards would take effect after the 2011 model year, for which the Obama administration has already announced an 8 percent increase in fuel economy standards from 25.1 mpg today to an average of 27.3 mpg back in March.
For 2011, cars will need to average 30.2 mpg, up from 27.5 mpg currently, while light trucks will see their requirement rise to 24.1 mpg, up from 23.1 mpg currently; the total fleet mileage increase will be 2 mpg for 2011.
However, the more stringent regulations will now begin in 2012, with a proposed average fuel efficiency increase of 5 percent annually through 2016. By 2016, the law would require an average 39 mpg for cars and 30 mpg for trucks.
Major Emissions Reductions
The official said the projected oil savings of Obama's proposals over the life of the program is 1.8 billion barrels of oil. The program is also projected to achieve reductions of 900 million metric tons of greenhouse-gas emissions during its life. That's equivalent of taking 177 million cars off the road or shuttering 194 coal plants.
As we've reported, all of the major automakers have come out in support of Obama's proposal. Indeed, Joining the president at the White House event today were top executives from 10 major automakers, including Fritz Henderson, who became president of General Motors Corp. in March after Obama ousted Rick Wagoner as head of the company.
According to the senior administration official, the EPA and the Transportation Department today will issue a notice of intent to propose these standards, so that will become publicly available.
"But car companies in California have also submitted a letter saying that if the proposal goes forward as they have been told, then they are prepared to move forward to do whatever they need to do," the official said.
Seems Everyone's Smiling
"GM and the auto industry benefit by having more consistency and certainty to guide our product plans," General Motors CEO Fritz Henderson said in a statement. GM and most other automakers during the Bush administration had tried to thwart California's efforts to impose its own fuel-economy standards by saying the state and 13 others threatened to create a confusing patchwork of rules that would harm the auto industry.
Other auto leaders sharing the stage with Obama were Ford's Alan Mullaly, Chrysler's Bob Nardelli, the UAW's Ron Gettelfinger, Toyota's Jim Lentz, Honda's John Mendel, BMW's Friedrich Eichiner, Nissan's Dominique Thormann, Daimler's Dieter Zetsche, Mazda's Jim O'Sullivan and Volkswagen's Stefan Jacoby.
Democratic Sen. Barbara Boxer of California, chairman of the Environment and Public Works Committee and a major proponent of stringent fuel-economy standards, called today's development "good news for all of us who have fought long and hard" to reduce global warming and reduce U.S. dependence on imported oil.
And Frances Beinecke, president of the Natural Resources Defense Council and one of many environmentalists speaking in favor of today's development, said the new standards "will deliver cleaner, higher-mileage cars nationwide, cut global warming pollution, and save drivers money every time they fill up."
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- Scott Doggett May 19, 2009, 11:19 AM
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- Emissions, Fuel Economy, Legislation
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- Automotive Emissions Greenhouse Gas Standards, CAFE Standards, Fuel Consumption, Fuel Economy Rules, Fuel Efficient Cars, Legislation, Obama CAFE Plan
Lets see, let a bunce of elitist tell the rest of the county how to live irrespective of the fact that we are suppose to have freedom of choice.
The only good thing I see is mid term elections coming up.
I wonder how many of moderates who vote for this will be around after it?
I don't think that cafe of 40 will work this time. I don't see the autho makers pulling rabbits out of their hats. Never mind the fact that if they do the elitist will just say 80 mpg next.
It is time for cafe to go away. Let this be the start of its destruction.