EPA set to roll back U.S. fuel requirements
Carmakers ask new official
to nix Obama action
The Environmental Protection Agency is close to an announcement reversing a decision made in the waning days of the Obama administration to lock in strict gas mileage requirements for cars and light trucks through 2025.
Automakers asked EPA Administrator Scott Pruitt to discard a Jan. 13 decision that requires the fleet of new cars to average a real-world figure of 36 miles per gallon.
The automakers said the Obama rules could add thousands of dollars to the price of new cars and cost more than a million jobs.
Lawmakers say the administration has signaled it plans to take this step. An announcement could come this week.
A decision to review the Obama rule sets up a potential legal battle with California and other states that have adopted tough fuel standards for drivers. California has received a waiver allowing the state to enforce its standards, which have also been adopted by 12 other states, including New York and Massachusetts.
The White House and the EPA declined to comment.
“Attacking the California waiver is a recipe for chaos,” said Sen. Edward Markey, D-Mass., who has pushed for higher fuel standards. California and other states that have adopted its standard will almost certainly file a legal challenge if pushed by the EPA, Markey said.
The Alliance of Automobile Manufacturers, which represents a dozen major car manufacturers, declined to comment. But in a Feb. 21 letter to Pruitt, the group said the EPA’s Jan. 13 decision on fuel economy “may be the single most important decision that EPA has made in recent history.” The alliance urged Pruitt to reconsider the plan, which it said could “depress an industry that can ill-afford spiraling regulatory costs.”
The regulations for model years 2017-2025 were imposed in 2012 as one of Obama’s major initiatives to reduce global warming.
Seven days before Obama left office, the EPA decided to keep the requirements for model years 2022 to 2025 after completing a legally required review. The standards are flexible, and automakers can meet them with existing technology, the agency said.
But the industry contends the decision was rushed to beat the change in administrations, noting that the original timeline called for a review by early 2018. President Donald Trump is considered to be more favorable to the industry than Obama.
The trade groups said the January rule did not account for cheaper gasoline that has helped fuel consumers’ love for gas-guzzling trucks and SUVs over more efficient cars. When the standards were conceived in 2012, gas was $3.60 per gallon, compared with around $2.28 now. In 2012, more than half the new vehicles sold in the U.S. were cars. Now, six of every 10 are trucks or SUVs, making the average fuel-economy figure more difficult to achieve.
The industry contends the Obama standards will drive up new car prices, while the EPA under Obama said gasoline cost savings will offset nominally higher vehicle prices.
Congressional Republicans criticized the EPA’s January decision, accusing EPA of hindering the evaluation process and making new vehicles more expensive. In a joint statement, the leaders of three key House committees suggested lawmakers would take action to reverse the EPA’s ruling.