Latest Developments…

The Obama administration Sept. 28 proposed a 40 percent increase in fuel economy standards along with the first proposed federal limits on greenhouse gas emissions from cars and light-duty trucks. The proposal was a joint action taken by the Environmental Protection Agency and National Highway Traffic Safety Administration. The proposal stems from a 2007 Supreme Court ruling that said carbon dioxide and other greenhouse gases are air pollutants under the Clean Air Act and that EPA must decide whether to regulate emissions and justify its decision (Massachusetts v. EPA, 549 U.S. 497, 63 ERC 2057 (2007)). Also in 2007, Congress passed energy legislation (P.L. 110-140) requiring fuel economy for cars and light-duty trucks to increase from 25 miles per gallon to 35 miles per gallon in 2020. The proposal follows up on a pledge by President Obama, who in May announced an agreement to speed up that schedule by four years and harmonize federal standards with those adopted by California and 13 other states. It would require cars and light-duty trucks sold in model year 2016 to achieve an average of 35.5 miles per gallon. In addition to the higher fuel economy, the proposal also would impose a national average carbon dioxide emission standard of 250 grams per mile.

The proposed rule represents the first time EPA has proposed regulating greenhouse gas emissions from cars. Environmental groups have been pushing for such action for 10 years, since a group of environmental advocacy organizations in 1999 petitioned EPA for the regulation of GHG emissions from new motor vehicles. The agency initially denied the petition, but several states responded to the denial with a lawsuit that eventually worked its way to the Supreme Court. In Massachusetts v. EPA, the Supreme Court ordered EPA either to regulate greenhouse gases or explain its reasons for not doing so. Following the election of President Obama and the confirmation of Lisa P. Jackson as EPA administrator, the agency issued a proposed rule declaring that greenhouse gases endanger public health and welfare (74 FR 18886, 4/24/09). The public comment period on the proposed finding of endangerment has closed, but EPA has yet to issue a final rule. A final finding that greenhouse gases endanger health and welfare would be in line with the fuel economy proposal, as it would require EPA to issue emission limits for all greenhouse gases from automobiles and light-duty trucks.