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 The
announcement - condemned by Democrats and environmentalists while
being lauded by Republicans and business interests - sets up a legal
battle, with California and 22 other states planning to challenge
the rewrite of what had been one of most ambitious U.S. policies
aimed at combating climate change.
The Trump administration called the move its largest single
deregulatory action and said it would will save automakers upwards
of $100 billion in compliance costs. The policy reversal marks the
latest step by Trump, a Republican, to erase environmental policies
pursued by Obama, a Democrat.
James Owens, acting head of the U.S. National Highway Traffic Safety
Administration, said the plan "strikes the right balance between
environmental considerations, health and safety considerations and
economic considerations."
Writing on Twitter, Trump said his administration was "helping U.S.
auto workers by replacing the failed Obama Emissions Rule."
Auto-producing states like Michigan could be pivotal in Trump's Nov.
3 bid for re-election.
House of Representatives Speaker Nancy Pelosi, a Democrat, said the
administration's decision will harm public health and endanger U.S.
economic security.
"The Trump administration's anti-science decision to gut fuel
standards will unleash massive amounts of pollution into the air at
the worst possible time," Pelosi said, alluding to the coronavirus
pandemic.
A coalition of states previously challenged the Trump
administration's decision to revoke California's authority to set
its own stiff vehicle tailpipe emissions rules and require
automakers under its Zero-Emission Vehicle Program to sell an
increasing number of electric cars and trucks in the most populous
U.S. state.
Under the Obama-era rules, automakers were to have averaged about 5%
per year increases in fuel efficiency through 2026, but the industry
lobbied Trump to weaken them. The new requirements mean the U.S.
vehicle fleet will average 40.4 miles per gallon rather than 46.7
mpg under the Obama rules.
The Trump administration said the new rules will result in about 2
billion additional barrels of oil being consumed and 867 to 923
additional million metric tons of carbon dioxide being emitted and
boost average consumer fuel costs by more than $1,000 per vehicle
over the life of their vehicles.
[to top of second column] |
ENVIRONMENTAL REVERSAL
Obama's environmental policies were intended to cut carbon emissions that drive
climate change, while Trump has ditched numerous environmental regulations that
his administration deemed harmful to industry and has aimed to increase the use
of fossil fuels. Trump also has pulled the United States out of a global climate
accord and moved to reverse clean water regulations and pollution standards for
coal-burning power plants.
California Air Resources Board chief Mary Nichols said her agency will move
forward with its zero-emissions program.
"This is a watershed moment marking the death of the old view of cars and
emissions tied to petroleum use, and another that looks to vehicle technology
driven by innovation," Nichols said.
The Trump administration in August 2018 initially proposed freezing requirements
at 2020 levels through 2026. Reuters reported in October automakers expected a
1.5% annual increase after talks with administration officials.
A trade group that represents General Motors Co, Volkswagen AG <VOWG_p.DE>,
Toyota Motor Corp and others said automakers need policies that support "a
customer-friendly shift" toward electrified and other highly efficient
technologies. "We are carefully reviewing the full breadth of this final rule to
determine the extent to which it supports these priorities," it said.
The U.S. Chamber of Commerce, a business group, said the final rule provides a
"workable path forward on a unified national program that provides regulatory
certainty while strengthening fuel economy standards and continuing emissions
reductions." Auto dealers also praised the revisions.
The administration said the revised rules will cut the future price of new
vehicles by around $1,000 and reduce traffic deaths. Environmentalists dispute
that the rule will reduce traffic deaths. The administration said drivers will
pay more in increased fuel costs than they will save in lower vehicle prices but
concluded they will save more in overall vehicle ownership costs.
The administration has battled with California over auto regulations. Last
month, the U.S. Justice Department closed an antitrust investigation into a
voluntary agreement between four automakers and California on emissions without
taking any action.
Ford Motor Co, BMW AG, Honda Motor Co and VW struck the deal last year,
prompting the federal investigation. The deal bypassed a White House effort to
strip California of the right to fight climate change and drew Trump's ire.
Volvo Cars confirmed on Tuesday it was also in talks to reach a California
emissions agreement.
Ford said on Tuesday it remains "committed to meeting emission reductions
consistent with the California framework."
(Reporting by David Shepardson; Editing by Will Dunham)
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