EPA & NHTSA Delay Fuel Standards

The EPA and the National Highway Traffic Safety Administration (NHTSA) were slated to release joint greenhouse gas and mileage standards for model years 2017-2025 cars and light trucks this week. However, the agencies have announced those rules will now be delayed until November.

Earlier this year, the agencies announced they would propose Corporate Average Fuel Economy (CAFÉ) standards for model years 2017-2025 in September in order to have rules finalized by July 2012. The projected 2025 target is 54.5 miles per gallon (mpg), which is almost double the current standard.

The complexity of the standards is cited by the agencies as the main reason for the delay. The agencies’ relatively new ability to set standards without Congressional approval necessitates more work on the part of the agencies. Prior to the 2007 Supreme Court ruling in Massachusetts v. EPA the agencies needed Congressional approval to increase fuel economy, today that is arguably unnecessary.

Another factor contributing to the delay is the time needed to coordinate with the state of California. Under the Clean Air Act, California is allowed to set stricter standards than the federal government, and other states can then choose to adopt California’s standards instead of the federal standards. Automakers have an incentive to support stricter federal standards if it means they will not have to comply with two different standards or let California become a pseudo-EPA.

Although the process for developing the standards is currently being investigated by the House Oversight and Government Reform Committee, the agencies have stated that the investigation is not a factor in the delay.

The administration estimates that the standards will save consumers $1.7 trillion in fuel costs by the year 2025 and reduce oil consumption by 2.2 million barrels a day. The projected oil savings and environmental benefits are detailed in a report released by the administration entitled Driving Efficiency: Cutting Costs for Families at the Pump and Slashing Dependence on Oil. While the administration is quick to point out the cost savings, it has yet to release numbers detailing the projected costs of complying with the new standards or an estimation of how much the price of a typical car will increase in response.

Additional information about CAFÉ standards is located on GLLF’s Federal Fuel Economy and Vehicle Greenhouse Gas Emissions Standards for Cars and Light-Duty Trucks webpage.

This post was authored by GLLF staff attorney Emily Kelchen.