Thursday, October 7, 2010

Car regulators aim for higher fuel economy

WASHINGTON — In a move that bolsters states with aggressive timetables for reducing auto emissions, the Environmental Protection Agency and the Transportation Department have taken new steps toward creating fuel standards that would require cars to get between 47 and 62 miles per gallon by the year 2025.
Friday's announcement, which the EPA described as "scenarios," not guidelines, was framed in terms of limiting the emission of greenhouse gases that climate scientists say contribute to global warming. The new steps follow up on rules the federal government adopted in April that would increase average fuel economy of cars to 34 miles per gallon by 2016.

Environmental groups hailed the action as affirming California's nationally trendsetting approach to controlling greenhouse emissions. The state had been expected to issue its standards for 2025 this fall, but it has delayed them until early next year, according to Roland Hwang, transportation program director for the Natural Resources Defense Council.

The announcement by the EPA and Transportation Department, called a notice of intent, would narrow the gap between the federal and state approaches, creating more uniform standards for carmakers, auto parts suppliers, green technology firms and oil companies to follow.

In a statement on its website, the California Air Resources Board said it "applauds" the federal government's efforts.

Spokesmen for the auto industry condemned them, saying they could raise prices and penalize consumers.

Final rules are scheduled to be issued at the end of July 2012.

The United States is the second-biggest emitter of greenhouse gases, behind China, and the vast American vehicle fleet accounts for a sizable portion of total emissions. For years, under Democratic and Republican administrations alike, the domestic auto industry blocked efforts to increase fuel economy standards in Congress by arguing that they would drive up prices of American cars, making them less competitive.

Fewer sales, the industry argued, would lead to auto plant closings and job losses.

Congress loses its say

In 2007, the Supreme Court ruled that the EPA could regulate new-vehicle emissions without going through Congress as part of its legal mandate to control greenhouse gas emissions and curb air pollution.

In a technical assessment the EPA and Transportation Department conducted with the California Air Resources Board, the agencies developed scenarios to decrease greenhouse emissions from cars by 3 percent to 6 percent annually starting in 2017. In terms of fuel economy, that would mean new cars would have to get on average between 47 and 62 miles per gallon by 2025. The agencies estimated that such improvements would add about $800 to $3,500 to the cost of a car but that owners would reap "lifetime savings due to reduced fuel costs of about $5,000 to over $7,000."

Car industry representatives vigorously dispute such estimates, contending that the calculations the Obama administration made were based on faulty assumptions about costs of technology and manufacturing.

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