Carmakers’ 'Harmonization’ Push Could Soften Fuel Efficiency Gains (1)

by Abby Smith (Bloomberg Environment) Automakers seek consistency in EPA, NHTSA programs as agencies weigh standards’ future; Environmentalists say push is meant to soften vehicle limits -- Automakers may already get what they want this spring as the Trump administration eyes lower fuel economy targets—but the industry is also seeking smaller, technical changes to the program that could lead to fewer fuel efficiency improvements down the road.

Automakers seek “harmonization” to secure the “one national program” sketched out in an agreement they made with the Obama administration to reduce greenhouse gas emissions and improve fuel efficiency under the umbrella of consistent programs at the Environmental Protection Agency, the National Highway Traffic Safety Administration, and the California Air Resources Board.

Last year, the EPA, at the request of automakers, re-opened a mid-term review of standards for model year 2022-2025 vehicles, reversing an Obama-era decision to maintain the program’s stringency for those years.

The EPA must decide whether it will alter its standards by April 1. NHTSA intends to release its proposed fuel economy standards March 30, the agency’s deputy administrator Heidi King has said.

The Golden State has the ability under the Clean Air Act to set limits stricter than federal levels, and a dozen states have adopted California’s standards. California has pledged to move forward with those stronger standards, even if the Trump administration weakens the federal program.

Two auto industry trade groups—the Alliance of Automobile Manufacturers and the Association of Global Automakers—jointly petitioned the EPA and NHTSA in 2016, detailing a number of technical requests they said would match up the programs.

While NHTSA in late 2016 partially granted the petition and pledged to address automakers’ concerns when it sets fuel efficiency standards for model year 2022-2025 vehicles, the EPA still hasn’t responded to automakers’ requests.

Some changes could stem from the mid-term review process and be dealt with at the agencies, but there are “three harmonization gaps that must be addressed statutorily,” Newton said.

Legislation (S. 1273) introduced last year by Sens. Roy Blunt (R-Mo.) and Debbie Stabenow (D-Mich.) would address those three requests. Reps. Fred Upton (R-Mich.) and Debbie Dingell (D-Mich.) introduced a companion bill in the House.

The legislation would increase the lifespan of credits under NHTSA’s program, allow a greater number of credits to be transferred between manufacturers’ car and light truck fleets, and allow manufacturers to retroactively earn off-cycle credits under NHTSA’s program. READ MORE