Support A Single Federal Fuel Economy Standard

New! View the March 5, 2009, testimony by NADA Chairman John McEleney before the U.S. Environmental Protection Agency on a single, national fuel economy standard. (View the press release).

"PATCHWORK PROVEN: Why A Single National Fuel Economy Standard Is Better For America Than A Patchwork of State Regulations"

View the Full Report Here ( 37pp. 325KB)

View Executive Summary Here ( 5 pp. 158KB)

State and Local Jurisdictions Seeking to Double-Regulate Fuel Economy

"Patchwork Proven" demonstrates that a single, national fuel economy standard is the only fair and workable way to reduce fuel consumption and CO2 emissions from motor vehicles.

Background

In 2007, Congress passed the Energy Independence and Security Act (EISA), a law that increased the CAFE standard by 40 percent, to at least 35 mpg by 2020. Because increasing fuel economy is the only way to significantly decrease greenhouse gas (GHG) emissions from motor vehicles, this new standard will decrease GHG tailpipe emissions by 30 percent by 2020.

Pursuant to EISA, a new fuel economy standard was proposed (to be finalized by the Obama administration no later than April 2009) that is higher than California’s (31.6 mpg v. 31.3 mpg).

Individual state efforts to regulate fuel economy by regulating GHG emissions from motor vehicles are unnecessary since the passage of EISA and will undermine the new CAFE law.

This effort, led by the California Air Resources Board (CARB):

Creates a Patchwork – CARB’s regulation will result in a patchwork of state regulatory regimes, as compliance with their regulation is based on what each automaker delivers for sale in each “California” state. What an automaker “delivers for sale” varies because consumer demand for certain vehicles differs from state to state, meaning compliance in California is no guarantee of compliance in any other state.

Exemptions – CARB’s regulation exempts until 2016 (and then regulates these now exempt automakers at a lesser standard) major global manufacturers.

Vehicle Rationing – To comply with CARB’s regulation, every automaker must sell the “right” mix of vehicles – some vehicles above the standard and some vehicles below the standard. If consumers do not buy the right mix of vehicles, the only realistic way for an automaker to comply will be to ration sales of certain models, or deeply discount other models. Both options distort the market and hurt dealers.

Cross-Border Sales Loophole – Because of vehicle rationing, consumers will go to other states to purchase vehicles unavailable in their state. Except in Rhode Island, vehicles bought in one state and registered in another are unregulated under CARB’s regulation. This loophole is non-existent under CAFE.

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