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– ECONOMIC AFFAIRS
Updated Sept. 15, 2009 – 1:33 p.m.
Obama Unveils New Clean Air and Fuel-Economy Standards
By Adriel Bettelheim, CQ Staff
The Obama administration on Tuesday unveiled new clean air and fuel-economy standards for cars and trucks that include first-time federal limits for tailpipe emissions.
Under the proposal, the fleetwide Corporate Average Fuel Economy (CAFE) standard will rise to 35.5 miles per gallon by 2016, accelerating the timetable for federal standards set in a 2007 energy law (PL 110-140), which would have required that standard to be met by 2020. The current standard is 27.5 miles per gallon.
Vehicles would have to meet a combined average emission level of 250 grams of carbon dioxide per mile.
The regulations cover model years 2012 to 2016, meaning auto manufacturers will have to immediately reconfigure their product lines in order to comply with the federal requirements.
The proposal adopts standards California and other states have long sought to impose that curb greenhouse gas emissions from vehicles. It also demonstrates President Obama’s willingness to use his executive powers to address climate change and set a national benchmark that supercedes state clean-air regulations.
Experts speculated the timing was designed to prod the Senate into enacting a climate change bill this year, by reminding lawmakers of the White House’s power to impose regulations unilaterally.
It also appears to lay the groundwork for a more sweeping executive order expected in the coming weeks: a so-called “endangerment finding” that would trigger a requirement for the federal government to regulate greenhouse gas emissions under the Clean Air Act (PL 101-549) without new legislation.
“They are continuing to show every sign that they are aggressively pursuing regulation. This is a driver for legislation,” said Kevin Book, managing director of ClearView Energy Partners LLC, a strategy and consulting firm. “Today’s announcement matters more in the context of the endangerment finding. But it signals clearly that an endangerment finding is coming.”
Paul Bledsoe, director of strategy and communications for the National Commission on Energy Policy, which advised Congress on energy matters, said, “It’s another in a series of indications that this White House is serious about regulating greenhouse gas emissions. The legislative focus on healthcare has overshadowed the consistent determination of the president to get a handle on greenhouse gas emissions. It hasn’t gone away. This is an effort to remind everyone of that.”
Bledsoe said the regulations send a signal to the world that the United States is serious about climate change in advance of December negotiations in Copenhagen on a climate treaty to replace the expiring Kyoto protocol.
Obama in May announced a deal that ended a series of legal disputes over the California standards and set in place a program to establish nationwide regulations for fuel efficiency and greenhouse gas emissions.
“By bringing together a broad coalition of stakeholders — including an unprecedented partnership with American automakers — we have crafted a path forward that is a win-win for our health, our environment, and our economy,” EPA Administrator Lisa P. Jackson said at a White House news conference on Tuesday.
Transportation Secretary Ray LaHood predicted the standards would ensure consumer choice and save people money while reducing the nation’s reliance on foreign oil.
California and 13 other states had been seeking an EPA waiver to set their own emission standards. Because California’s clean air regulations preceded federal law, the state and others that want to adopt its standards have the right under the Clean Air Act (PL 91-604) to be particularly aggressive on this front — so long as the EPA issues a waiver declaring the state’s rules comply with the federal law.
The administration of George W. Bush had denied the waiver.
Obama and administration officials have portrayed the nationwide standard as a way of helping automakers prepare for the future while giving the federal government primacy over states on the question of who should regulate autos.
“This action will give our auto companies some long-overdue clarity, stability, and predictability,” Obama said Tuesday during an appearance at a General Motors Corp. assembly plant in Lordstown, Ohio.
The standards also reflect the changing relationship of the auto industry and the federal government. With General Motors and Chrysler LLC accepting billions of dollars in federal bailout money, the domestic automakers have lost some of the political clout that helped them fend off tougher fuel economy standards for many years.
Greg Martin, General Motors’ director of policy and Washington communications, said Tuesday’s announcement adds detail to the May agreement.
“GM and the industry agreed to these more aggressive standards back in May. This just puts in place the fine print, the rules of the road,” Martin said.
Rep. Edward J. Markey , D-Mass., chair of House Select Committee on Energy Independence and Global Warming, said the rules would halt “a seemingly endless loop of litigation” between the auto industry, environmentalists and states.
The administration estimated the new regulations will reduce greenhouse gas emissions by nearly 950 million metric tons, conserve 1.8 billion barrels of oil and save the average car buyer more than $3,000 in gasoline expenses over the lifetime of a 2016 vehicle.
The 2007 energy law required the fleetwide CAFE standard to rise to 35 miles per gallon by 2020, a 40 percent increase over current levels. The Bush administration did not finalize regulations in support of the law.
First posted Sept. 15, 2009 11:41 a.m.




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