Bringing together several US institutions and the State of California, the US administration yesterday proposed a federal policy encompassing the nation's strongest fuel efficiency requirements as well as the first US restriction on greenhouse gas emissions. The EPA and NHTSA will now initiate a joint rulemaking that could also include flexibility measures in achieving emission reductions, such as air conditioning credits.

In an unprecedented collaboration between the Department of Transportation (DOT), the Environmental Protection Agency (EPA), the world’s largest auto manufacturers, the United Auto Workers, leaders in the environmental community, the State of California, and other state governments, a new national policy aimed at both increasing fuel economy and reducing greenhouse gas pollution for all new cars and trucks sold in the US was set in motion yesterday.
“Right now, the rules governing fuel economy in this country are inadequate, uncertain, and in flux. First, there is the standard for fuel economy administered by the Department of Transportation. On top of that, the Environmental Protection Agency, in response to a decision by the Supreme Court, may have to set limits on greenhouse gas emissions from vehicles -- establishing another standard. California has sought permission under the Clean Air Act to require that vehicles sold in California meet yet another even stricter emission rule. And 13 states and the District of Columbia have agreed to adopt California greenhouse gas reductions if the permission -- called a waiver -- is granted. Car companies might then face three different sets of overlapping requirements, one administered by the Department of Transportation, one administered by the EPA, and still a third administered by California and 13 other states. This proposed national policy, under the leadership of two agencies - and bringing together 14 states, 10 companies, as well as auto workers and environmental groups - changes all that”, said Obama at a White House ceremony attended yesterday by auto industry and union leaders.
Improving fuel efficiency
At the ceremony, Obama announced new standards covering model years 2012-2016 which will ultimately require an average fuel economy standard of 35.5 mpg in 2016, about 10 mpg more than today’s standards. More specifically, passenger cars will be required to get 39 mpg, while light trucks and SUVs 30 mpg.
Reducing greenhouse gas emissions
The proposal that will be put forward by the Obama administration represents the first ever US restriction on greenhouse gases, as the EPA will set a fleet goal of tailpipe emissions of 250 grams of carbon per mile by 2016, matching the goal of California, but ramping up at a slower rate. Despite the fact that the federal plans are based on California’s model, the state “will be immediately getting to work on what the standards should be beyond 2016”, said Mary Nichols, chair of the California Air Resources Board.
Although most of the required reduction of greenhouse gases would come from better fuel efficiency and hence the reduction of carbon dioxide emissions, improvements in cars mandated in the new standards will also reduce emissions of other potent greenhouse gases such as hydrofluorocarbons.
Next steps
EPA and NHTSA will initiate a joint rulemaking, which is expected to include several elements important to carmakers, including providing them with flexibility measures in achieving emission reductions, such as air conditioning credits or other credits for using additional technologies that reduce greenhouse gas emissions.