Start Your Engines. According to Politico, “Competing voices will be on full display today, while President Donald Trump meets with automakers who will plead their case on fuel efficiency standards. The goal for automakers: Beat back the National Highway Traffic Safety Administration’s strict plan and persuade the White House to reach a compromise with California. Top executives from Ford, General Motor and Toyota, as well as the Alliance of Automobile Manufacturers and the Global Automakers, will warn that NHTSA’s plan would lead to a market split, creating uncertainty across the country. Wait, what’s going on? The Transportation Department, which found itself in the backseat during the Obama administration, has switched roles with EPA under Trump, meaning NHTSA has been driving the internal debate over what to do about the Obama-era rules, Pro’s Eric Wolff reports. ‘Under Obama, EPA set the [greenhouse gas] standard, and NHTSA had to harmonize with it,’ said a source who opposes the weakening the standards. ‘Under Trump, NHTSA is using the CAFE standard as the locomotive, and EPA’s GHG standards will be the caboose.’ Automakers have said the Obama rules are too onerous for them to meet, but they also worry the Trump administration may go too far. The most aggressive option now under consideration would freeze fuel efficiency standards at 2020 levels and revoke California’s authority to set its own greenhouse gas limits on tailpipe emissions. If that were to move forward, the administration would find itself in a legal battle with California and a host of states, who have prevailed in court in the past. Most in the industry do support tighter standards for the coming years, but phased in over a longer time period — an argument they’ll try to make to Trump today.” [Politico, 5/11/18 (=)]

 

Mail Call! CAFE Edition. According to Politico, “Ahead of today’s meeting, three members of the Trump transition wrote to the president asking him to stay the course on the CAFE standards. ‘Your efforts to reform this mandate are about cost, consumer choice, and whether or not your administration or the State of California gets to set a national policy,’ Myron Ebell, who led the transition at EPA; Shirley Ybarra at Transportation; and Thomas Pyle at DOE write in a letter.” [Politico, 5/11/18 (=)]

 

Automakers Lobby Trump On Climate Rule Compromise. According to E&E News, “Automakers will toe a fine line today in their meeting with President Trump over fuel efficiency rules. Top executives from Ford Motor Co., General Motors Co., Fiat Chrysler Automobiles NV and other automakers are expected to ask Trump to require improvements in mileage and avoid yearslong litigation with California at a White House meeting today. That’s a more moderate position than the rollback drafted by the Trump administration so far. A leaked plan would freeze fuel economy targets at 2020 levels and argue against California’s authority to set its own, more stringent standards, setting up a long legal fight. Mitch Bainwol, CEO of the Alliance of Automobile Manufacturers, told lawmakers this week that the group wants to ‘increase fuel efficiency standards year-over-year and incorporate California to ensure that ‘One National Program’ is maintained.’ ‘We’re hopeful that the slope continues to rise,’ Bainwol said. The CEOs have reason to keep the meeting on script and appease the president, because a potential gap between the administration and the auto industry could be politically dangerous. Trump has made stocks tumble by shooting off tweets lambasting automakers for manufacturing cars in Mexico. He has also dangled the threat of tariffs and a renegotiation of the North American Free Trade Agreement — an issue that overshadows fuel efficiency rules for many of the companies.” [E&E News, 5/11/18 (=)]

 

Consumer Groups Seek Higher Industry Political Price For Auto GHG Rollback. According to Inside EPA, “Consumer groups are trying to increase the political price that automakers would pay for supporting any rollback of vehicle greenhouse gas and fuel economy standards, ahead of a meeting in which President Donald Trump is expected to offer countervailing pressure on auto CEOs to back his administration’s aggressive rollback plan. Some observers suggest automakers may try to moderate Trump’s proposals. The industry itself has called for ‘year-over-year’ increases in stringency rather than freezing the standards, as well as a negotiated deal that includes California. But some consumer advocates are offering a more skeptical take about automakers’ advocacy. ‘Until an automaker comes forth with a detailed proposal [regarding changes to the standards for model years 2022-2025], I think they’re trying to play a PR game of trying to sound like they don’t want rollbacks when that’s exactly what they’re looking for,’ said David Friedman, director of cars and product policy for Consumers Union, during a May 10 press call scheduled a day before Trump’s meeting with auto executives. Some automakers have expressed concern that the Trump’s administration’s draft plan to freeze the EPA and National Highway Traffic Safety Administration (NHTSA) standards and block California’s authority is an overreach that could prompt years of legal and regulatory uncertainty.” [Inside EPA, 5/10/18 (=)]

 

Ford Rejects Shareholders' GHG Resolution. According to E&E News, “Ford Motor Co. shareholders are pushing back against automakers’ efforts to weaken climate standards for cars. A group of shareholders backed a resolution asking Ford to explain how it will reduce greenhouse gas emissions if President Trump rolls back Obama-era auto rules as planned. The resolution was voted down yesterday, but the move marks the latest escalation in a campaign by environmental and public health advocates seeking to get automakers to commit to significantly reducing emissions from their cars at a time when the Trump administration is drafting a freeze or a significant weakening of the tailpipe rules. It was the first time the proposal came forward, and the rejection was expected. Today, Ford representatives are scheduled to meet with Trump and other automakers about the fuel efficiency rules (see related story). They are expected to tell the president they want him to increase fuel economy each year and avoid years of litigation with California. They’re likely to push for a rollback that would be more moderate than the one drafted by the Trump administration, but still less stringent than the Obama rules.” [E&E News, 5/11/18 (=)]