About Auto Industry

Everyone has their eyes on the automotive industry lately. BNET Automotive gathers and supplies daily industry trends and news coverage with specific insights for managers and executives, focusing on the major auto companies and parts manufacturers. In addition to detailed auto company trends and profiles, we report on new alliances and partnerships, new models, mergers and acquisitions, labor management, auto unions, investments, and other key issues related to this sector of business.

Is Obama Out of Bounds on Climate Change?

By Jim Motavalli | May 22, 2009

Did President Obama exceed his authority by announcing a fuel economy goal—35.5 miles per gallon fleet average—for automakers in 2016? The goal (which works out to 30 mpg for trucks, 39 for cars) is part of a sweeping and unprecedented rulemaking announced earlier this week that combines Corporate Average Fuel Economy (CAFE) legislation with greenhouse gas regulation.

Kirk Van Tine is a partner in the government relations practice group at the Washington law firm Baker Botts—and a former general counsel in the Bush-era Transportation Department headed by Norm Mineta.  Some background is necessary with Baker Botts. The Baker is Republican leader James Baker, a fixture in both Bush administrations. According to The Nation, “No law firm in America has profited more from its association with the two Bush Administrations than Baker Botts.”

But, this aside, Van Tine makes an interesting point. “The announcement and the media coverage made it sound like a decision has been made and the 35.5-mpg standard is going to happen. It sounded like the end of the process, when, in fact, a lot has to happen between now and the middle of next year to accomplish the end point they announced. It’s a long technical and legal process, and the mileage number comes at the end of it. They seem to have short-circuited that approach.”

Van Tine also said that the EPA has not finished the similar rulemaking that will, in the end, give it authority to regulate greenhouse gases.

Indeed, the process is lengthy and complicated. The joint rulemaking includes an extensive public comment period, and the mileage numbers take into account such balancing factors as engineering feasibility, consumer and environmental issues. Van Tine says, “It’s not appropriate to announce what the end result of the CAFE process will be when it’s barely begun.”

But Dan Becker of the Safe Climate Campaign, who has worked on CAFE issues for many years, including at his previous post at the Sierra Club, said that Van Tine “should read the actual federal notice.”

According to Becker, “The EPA and the Department of Transportation are working up standards to achieve the 35.5-mpg goal. It’s a goal. And the President also instructed the EPA to determine whether carbon dioxide [CO2, the major global warming gas] is a threat to health and welfare. That opened the door to allow regulation, and empowers the agency to reduce carbon emissions.”

President Obama has also given the EPA until the end of June to approve or turn down California’s attempt to regulate greenhouse gases. The fact that those California regulations will go away, at least temporarily, is a major incentive for automakers. The federal climate regulation runs from model year 2012 to model year 2016, and after that California could decide to issue its own standards if it deems the federal ones not tough enough.

As issued by the lawyer in chief, the joint rulemaking does seem to make it amply clear that 35.5 mpg is a goal. EPA and DOT, it says, have been charged with combating climate change and reducing oil consumption. They “intend to work in coordination to propose standards for control of emissions of greenhouse gases and for fuel economy, respectively,” the document says. “If proposed and finalized, these standards would apply to passenger cars, light-duty trucks, and medium-duty passenger vehicles (light-duty vehicles) built in model years 2012 through 2016.” It admits some uncertainty: “If ultimately adopted, these standards would represent a harmonized and consistent national policy…”

A single, consistent national policy is what automakers have been saying they wanted, and that’s why they’re not calling their own lawyers. Carol Browner, the White House assistant (and former EPA secretary) who is a major figure in helping shepherd the new rules forward, assures corporate America in this video that such regulations will have dramatic upsides for business:

Jim Motavalli is the author of Forward Drive: The Race to Build Clean Cars for the Future, among other books. He has been covering the environmental side of the auto industry for more than a decade, and writes regularly on those topics for the New York Times.

BNET User Analysis

Web Buzz:
  • How 35.5 MPG Will Change Our Vehicles and the Way We Drive: Analysis

    Popular Mechanics - 167 days 20 hours 42 minutes ago

    (Photograph by C.J. Burton) The EPA's Role in Fuel EconomyOne confounding issue is that the CAFE (Corporate Average Fuel Economy) standards that the EPA has been tasked with enforcing are based on driving cycles codified in 1978. These CAFE mileages are not the same as the EPA city, highway and combined economy ratings you see on the window...

  • What the New Fuel Economy Standards Could Mean for Future Truck Buyers

    PickUpTrucks.com - 188 days 2 hours 33 minutes ago

    Today, President Barack Obama officially announced a new federal policy to raise the mandated average gas mileage of cars and trucks, as well as reduce greenhouse gas emissions. By 2016, the fleet fuel efficiency standard for all passenger cars will be 39 mpg, and it will be 30 mpg for light trucks and sport utility vehicles. The average of...

  • Technology keeps gas engines in the game

    Auto News - 140 days 19 hours 41 minutes ago

    President Barack Obama's goal to raise corporate average fuel economy standards to 35.5 miles a gallon by 2016 is ambitious. It's also attainable but perhaps not in the way the president envisions

  • Obama to Raise Fuel-Economy Standards

    New York Times - 188 days 13 hours 10 minutes ago

    President Obama will unveil tough new standards for cars and trucks on Tuesday that will reach 39 miles per gallon for cars and 30 for trucks (or a fleetwide average of 35.5 m.p.g.) in 2016, the programs last year, said a senior administration official. Though the mandates are aimed at reducing greenhouse gases, the only...

  • New Standard Links Mileage and Gas Emissions

    New York Times - 68 days 13 hours 22 minutes ago

    New rules would require the auto industry’s fleet of vehicles to average 35.5 miles a gallon by 2016

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
Click Here
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here