Talks Break Down Between California, U.S. on Car Mileage, Sources Say

February 20, 2019

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by Ryan Beene (Bloomberg) Trump administration seeking to roll back Obama-era standards; Cars are a flashpoint in tension between Trump, California -- Talks between California and federal officials on vehicle emissions and fuel economy standards have broken down without a deal, three people familiar with the matter said.

The Environmental Protection Agency and National Highway Traffic Safety Administration had been meeting with California’s Air Resources Board in pursuit of a compromise as the federal agencies aim to finalize by late March or early April a replacement for Obama-era fuel efficiency regulations that automakers are seeking to modify.

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In a statement, CARB acknowledged the impasse and said federal officials ended communications about the rules late last year.

“The administration broke off communications before Christmas and never responded to our suggested areas of compromise -- or offered any compromise proposal at all,” CARB spokesman Stanley Young said in an email. “We concluded at that point that they were never serious about negotiating, and their public comments about California since then seem to underscore that point.”

EPA Acting Administrator Andrew Wheeler briefly meet with CARB Chairman Mary Nichols earlier this month when the two appeared at the BloombergNEF Summit San Francisco, and both made clear in public statements that they remained far apart on the rules.

In an interview with Bloomberg Television on Feb. 4, Wheeler dismissed a counter-offer by California to extend the timeline of the existing requirements because it would not lower vehicle prices and improve road safety enough, goals the Trump administration has used to justify its proposal.

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August Proposal

The federal agencies released in August a proposal that recommended capping mileage requirements at a 37 miles per gallon fleet-average after 2020, instead of rising to about 47 mpg under rules adopted by the Obama administration. It also recommended revoking California’s cherished authority to set tailpipe greenhouse gas emissions standards for new autos.

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Automakers have urged the Trump administration to broker a compromise with California to maintain nationwide uniformity in fuel economy requirements. Roughly a dozen other U.S. states adhere to California’s vehicle emissions standards, a bloc that represents more than a third of U.S. auto sales. READ MORE

AND GENERALISSIMO FRANCISCO FRANCO IS STILL DEAD: (Politico's Morning Energy)

COUNTING CARB: (Politico's Morning Energy)

Trump-California rift widens as auto emissions talks fail (Reuters)

Trump administration’s talks with California over fuel efficiency break down (Washington Post)

White House breaks off talks with Calif. (E&E News)

Trump administration ends talks with California over car emissions rule (The Hill)

CALIFORNIA VS. TRUMP GOES ANOTHER ROUND: (Politico's Morning Energy)

The Interaction of the Clean Air Act, California’s CAA Waiver, Corporate Average Fuel Economy Standards, Renewable Fuel Standards and California’s Low Carbon Fuel Standard (Advanced Biofuels USA)

FORD INVESTIGATING PROCESS FOR U.S. EMISSIONS CERTIFICATION CONCERNING ROAD LOAD (Ford Motor Company)

Why Your Gas Mileage May Be Declining (Forbes)

Excerpt from Politico's Morning Energy: AND GENERALISSIMO FRANCISCO FRANCO IS STILL DEAD: ... This latest breakdown is symptomatic of the entire negotiating process, which has included a few face-to-face meetings, vague talk about maintaining a single national program, occasional potshots in the press — and absolutely no movement whatsoever. California and the Trump administration are both firmly entrenched in their positions, and EPA's plan to finalize its rolled-back standards within a couple of months means this is almost certainly headed to court. READ MORE

Excerpt from Politico's Morning Energy: COUNTING CARB: Talks between California and the Trump administration over auto emissions regulations have ended with no tangible progress, as EPA and the Transportation Department near a self-imposed March deadline to rewrite the joint state-federal fuel economy standards for passenger vehicles.

The Trump administration has decided to end the talks, Reuters reports — a sentiment California Air Resources Board Chairwoman Mary Nichols echoed to POLITICO.

Nichols said the talks had been moribund for some time, despite repeated meetings with federal officials over the past year, Pro California's Debra Kahn reports . "They never started, so it's easy to end," Nichols said.

"The administration broke off communications before Christmas and never responded to our suggested areas of compromise — or offered any compromise proposal at all," CARB spokesman Stanley Young said in an email. "We concluded at that point that they were never serious about negotiating, and their public comments about California since then seem to underscore that point."

The end of the talks could factor into Wheeler's nomination for EPA administrator, Senate Environment and Public Works ranking member Tom Carper said Wednesday. "After Mr. Wheeler's emphatic insistence at his confirmation hearing that 'nobody wants a 50-state deal more than I do,' the end of these talks send a clear message that, sadly, Mr. Wheeler has been unable to keep his word," he said.

To the courts: EPA's move to finalize its rolled-back standards means it is almost certainly headed to court. Case in point: Environmental Defense Fund senior attorney Martha Roberts said Wednesday the group would "keep fighting, in the court of public opinion and the court of law, to protect our Clean Car Standards for all Americans." READ MORE

Excerpt from Politico's Morning Energy: CALIFORNIA VS. TRUMP GOES ANOTHER ROUND: California Gov. Gavin Newsom accused President Donald Trump of siding with oil companies over children following the Trump administration's announcement ending talks on auto emissions regulations, Pro California's Debra Kahn reports.
"If the Trump administration follows through, the only winners will be fossil fuel companies, and those profits will come at the expense of our children's health," Newsom said in a statement.

California Air Resources Board Chair Mary Nichols predicted administration officials' estimates that they'll release the final rule in late March or April could slip to May or June, due in part to last month's government shutdown. "More likely it'll be May or even June we will see a final rule, and then at that point we will have to be prepared to take action," she said. READ MORE