Obama Administration To Unveil New Auto Emissions Rules
May 18 2009 - 9:34PM
Dow Jones News
The Obama administration's new auto-emissions rules will be
individualized for each car class and company, detracting from
current law that sets a standard for the entire U.S. fleet, a
senior administration official said Monday night.
The new rules will be designed to lead to an overall average of
39 mpg for cars and 30 mpg for trucks by 2016, the official said.
But by setting standards for each class size and manufacturer, auto
makers won't be able to ramp up the efficiency of select models
while avoiding improving others, such as SUVs, the official
said.
"Every single category of cars has to become more efficient,"
said the official, briefing reporters on a conference call on the
condition of anonymity.
The new standards, which will also set rules on the reduction of
greenhouse-gas emissions, mean that the overall average of cars and
light trucks on U.S. roads will be 35.5 mpg by 2016, four years
earlier than current federal law requires. The standards will be
developed jointly by the Transportation Department and
Environmental Protection Agency, the official said.
The new standards also resolve a dispute between the auto
industry and California, which is seeking a waiver from the federal
government to set its own rules on greenhouse-gas emissions from
vehicles. California officials have agreed to defer to the national
standard if they win the waiver, the Obama administration official
said.
The rules will increase the cost of manufacturing a vehicle by
$600, the official said, acknowledging that consumers will, too,
end up paying more for cars. But because the cars will burn less
fuel, the added initial cost will be offset by gasoline savings,
the official said.
The official called the new standards "historic," in part
because for the first time they would require a massive reduction
in greenhouse-gas emissions, which are blamed for global warming.
The environmental benefits under the new rules would be equivalent
to taking 177 million cars off the road, the official said.
The administration developed the standards on the assumption
that a gallon of gasoline will cost $3.50 in 2016.
-By Josh Mitchell, Dow Jones Newswires; 202-862-6637;
joshua.mitchell@dowjones.com