Trump Administration Said to Eye Big Cuts to Fuel Economy Rules
2018-02-10 01:57:15.658 GMT
By Ryan Beene, Alan Levin and John Lippert
(Bloomberg) -- The Trump administration is looking at ways
to reduce future fuel economy standards for automobiles in a
move to appease carmakers, who have asked to ease future targets
put in place under President Barack Obama
The National Highway Traffic Safety Administration is
looking at a range of options to lower future targets, including
one that would permit an average fleetwide fuel economy standard
of 35.7 miles per gallon by 2026, down from the 46.6 miles per
gallon under rules charted by the Obama administration,
according to a draft NHTSA analysis obtained by Bloomberg News.
Under that scenario, the agency projects an estimated 10
percent of new cars and light trucks sold in 2030 would need to
be hybrid or plug-in electric to comply with the standards. That
compares to 61 percent under the Obama-era proposal, according
to the document.
The draft analysis, dated January 22, outlines several
alternatives to NHTSA fuel economy standards for upcoming model
years that were charted during the Obama administration. Other
scenarios offer less aggressive cuts to future standards. The
document does not specify a preferred scenario.
The draft also indicates NHTSA may propose standards for as
early as the 2021 model year and as far in the future as model
year 2026, giving automakers additional time to achieve
reductions in fuel consumption.
Related: EPA Seeks to Keep the Peace With California on Car
Mileage Rules
The documents provide a glimpse into negotiations now going
on between NHTSA, the Environmental Protection Agency and
California regulators over the fate of one of the Obama
administration’s signature environmental policies. At the end of
March, NHTSA plans to begin the process of putting rules in
place that will set new fuel economy rules for 2022 to 2025.
The proposal could set the Trump administration on a
collision course with California regulators, who have vowed to
defend their own efficiency standards. Automakers are hoping to
maintain consistent standards nationwide, which would require
federal regulators and state officials to agree on any changes
to the rules. Failing to strike a deal could lead to a messy
court battle and leave industry rules under a cloud of
uncertainty.
Requests for comment left with NHTSA and Transportation
Department spokeswomen were not returned late Friday.
Why Trump Would Want to Slow Tough Fuel Standards:
QuickTake Q&A
NHTSA’s Corporate Average Fuel Economy standards were first
enacted in the aftermath of the 1973 Arab oil embargo. In 2009,
they were linked with tailpipe greenhouse gas emissions
standards set by the EPA and the California Air Resources Board
under a deal brokered by the Obama administration.
Automakers in 2011 again agreed to a trio of coordinated
rules overseen by the EPA, NHTSA and the California Air
Resources Board that get more stringent each year, and extended
them until 2025 when they arrive at a fleet average of more than
50 miles per gallon. That’s equivalent to about 36 miles per
gallon in real-world driving.
Automakers have aggressively lobbied President Donald Trump
to take a new look at the standards that they say need
adjustments in light of surging light-truck sales, low gasoline
prices and tepid demand for plug-in vehicles.