Background
The House-passed Waxman-Markey global warming legislation (H.R. 2454) would regulate CO2 emissions, except those from a vehicle’s tailpipe. This omission would allow EPA to regulate fuel economy under the Clean Air Act, a statute neither designed nor intended to regulate fuel economy. The bill also gives California Air Resources Board (CARB) a special exemption to continue its effort to set fuel economy policy for the nation by putting its program outside the “cap” on greenhouse gases.
These new rules would be in addition to, and in conflict with the long-standing CAFE law. The May 2009 announcement by the President on fuel economy, while addressing some of the duplications and problems among these varying laws (e.g., California’s “patchwork”), still leaves in place three fuel economy standards, administered by three different agencies, with three different requirements.
Key Points
Given EPA’s July 8 approval of California’s Clean Air Act preemption waiver request, passage of H.R. 2454 would be an implicit congressional approval for state-by-state fuel economy schemes. Members should be aware of the following flaws in California’s regulation:
• Exemptions for over a dozen major automakers from regulation;
• Potential exemptions for Chinese and Indian automakers;
• Creates a “cross border sales” loophole;
• Could lead to vehicle rationing in “California” states.
NADA’s January 2009 report, “Patchwork Proven,” spells out the numerous problems with allowing California to have the primary role in regulating fuel economy for the nation. (See below)
Status: September 2009
H.R. 2454 passed the House of Representatives by a vote of 219-212 on June 26, 2009. Action in the Senate is expected this autumn. NADA has been educating lawmakers on the flaws of multiple regulation of fuel economy. Members of Congress, especially Senators, are urged to support a single, national fuel economy standard that promotes technologically feasible and economically practical improvements in motor vehicle fuel economy while preserving the ability of dealers nationwide to engage in interstate new vehicle commerce.
"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)
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State and Local Jurisdictions Seeking to Double-Regulate Fuel Economy
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"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.