Category: Automotive

Ten months after the U.S. EPA and DOT proposed easing federal fleet fuel economy standards for 2021-2026, there has been no formal submission of the plan. And more than a year after the EPA suggested that it might challenge California’s waiver to set stricter standards, it hasn’t confirmed one way or another whether it will do that.

As if a rapidly evolving tariff situation and trade war weren’t enough, the uncertainty over mileage standards has also led to a great deal of unease in the auto industry. Thursday, 17 automakers sent a letter to President Trump asking for some reassurance on the mileage standards—and spelling out exactly what they presently want: one national standard for vehicle fuel economy, in the form of a final rule that California can support.

Audi e-tron, on the Golden Gate Bridge

The letter thanks the President for supporting “a vibrant and competitive auto industry in the United States,” and notes the different market landscape versus in 2011, when the standards were last revamped. Examples include lower-than-expected fuel prices, a higher rate of SUV and pickup sales, and a lower-than-anticipated adoption rate of vehicles with alternative powertrains.

The automakers stressed that the final rule, which would cover model years 2021 to 2026, would need to include “flexibilities that promote advanced technology for the sake of long-term environmental gains and U.S. global competitiveness.”

“For these reasons, we support a unified standard that both achieves year-over-year improvements in fuel economy and facilitates the adoption of vehicles with alternative powertrains,” said the automakers. “We encourage both the federal government and California to resume discussions and to remain open to regulatory adjustments that provide the flexibility needed to meet future environmental goals and respond to consumer needs.”

Tesla didn't signed to the letter. Direct mentions of electric vehicles, electrification, hybrids, carbon reduction, or climate change were also notably missing from the letter, which was sent in CC to Secretary of Transportation Elaine Chao, U.S. EPA Administrator Andrew Wheeler, and National Economic Council Director Lawrence Kudlow.

Tesla factory, Fremont, California

Talks between the federal and California agencies, according to a joint statement from the EPA and Transportation Department, broke off in February as the California Air Resource Board “failed to put forward a productive alternative. CARB claims that talks never actually got to the depth of either discussing or negotiating policy.

The regulation proposal itself is overdue. What the EPA previously issued was just a notice of proposed rulemaking. The plan hasn’t yet been rolled out in any formal way, and Reuters noted that before it can even be published it needs to be submitted to the White House Office of Management and Budget for review.

The administration hasn’t yet rolled out the formal version of its plan, which was last reported to make a very small increase in fleet-wide fuel efficiency. Wheeler told Reuters in April that “our final regulation is not going to be the same as our proposal.”

Most automakers, who may have been eager to lobby for relaxed standards, have come to realize that a long fight with California isn’t in the interest of global competitiveness. And if the EPA decides to deny California of its waiver, the case could lead to an extended (read: years-long) state of unease as the case makes its way through the courts.

As the letter explained, a divided U.S. market “could prove as untenable as the current program.”

California Air Resources Board chair Mary Nichols (via Twitter)

CARB chairwoman Mary Nichols last month said that if it is denied its GHG waiver the state might get creative with fees, taxes, and perhaps even bans on certain types of vehicles and products.
Green Car Reports has reached out to CARB, which wasn’t officially looped in on the letter, and will update this piece when they provide a statement or reaction.

“Striking the proper balance will not be easy, but we know with your leadership it can happen,” the automakers swoon to Trump, in a conclusion to the letter. “We are eager to work with you to advance this outcome and strengthen our economy and technological leadership.”