Monday, June 11, 2018

The precarious state of fuel economy policy

Rated at 25 mpg, the Toyota RAV4 reflects the average fuel economy of new personal vehicles now
sold in the United States, emitting 5.2 metric tons of CO2 per year over 15,000 miles of driving. 
Any day now, the Trump Administration will formally propose its revisions to the coordinated program of Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) emission standards for cars and light trucks. EPA Administrator Scott Pruitt has determined that the existing standards, set in GHG terms by the previous administration for model years 2021-25, are too tough. Everyone expects that the proposal will weaken the regulations; the question is by how much.

As a long-time analyst of automotive fuel economy policy, over the past few weeks I've written several pieces providing perspectives on the issue as linked here.

Even though it's not a good reason to weaken the standards, automakers do have a valid concern about low consumer interest in ever-higher fuel economy. The tension between what consumers desire and the need to cut GHG emissions is a problem to take seriously and address creatively. This challenge is discussed in my recent piece "Why aren't automakers connecting better with green-minded consumers?" in Automotive News.

A broader look at the regulatory dispute is given the piece, "After Years of Green Promises, Automakers Renege on Emissions Standards," published last week by Yale Environment 360. Hooking to visionary-sounding statements by GM's chief executive, it highlights the contrast between the automaker's promise of technological solutions and the efforts to fight the policies needed to bring such solutions to fruition. That's an old story in the long-running debates about clean cars. However, with automakers now able to exploit the empowered political hostility to the environment that they (and some other industries) cultivated over the years, progress may soon grind to a halt. My comments echo those of others who point out California's crucial leverage on the issue.

A concise take on this very point is given by my Axios Expert Voices piece, "Automakers struggle to head off the California–EPA legal battle," published earlier last week.

A couple of months back, shortly after Administrator Pruitt issued his notice about the process to revisit the CAFE and GHG emissions standards, I argued that "Stronger fuel standards make sense, even when gas prices are low" in The Conversation (and also republished by Salon and other outlets).

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