Carmakers Urge Trump-California Compromise On Fuel Economy Standards

Seventeen major automakers, including GM and Ford, are calling for a compromise between the Trump Administration and California on the fuel economy standards through one nationwide broadly supported final rule, in order to avoid regulatory uncertainty and “an extended period of litigation and instability.”  

In a letter to U.S. President Donald Trump, the major carmakers said that “What works best for consumers, communities, and the millions of U.S. employees that work in the auto industry is one national standard that is practical, achievable, and consistent across the 50 states.”

Last summer, the Trump Administration unveiled proposed rulemaking for rolling back Obama-era fuel economy standards. The proposed rulemaking is intended “to correct the national automobile fuel economy and greenhouse gas emissions standards to give the American people greater access to safer, more affordable vehicles that are cleaner for the environment,” the Department of Transportation says.

The plan is fiercely opposed by California, which says that the proposed weakening of the emission rules is a “brazen attack” on clean car standards.

Negotiations between the Trump Administration and California broke down in February this year after the White House discontinued discussions saying that “Despite the Administration’s best efforts to reach a common-sense solution, it is time to acknowledge that CARB has failed to put forward a productive alternative” to the proposed rule.

In March this year, reports emerged that the White House pressured automakers to support the Trump Administration’s proposal to roll back fuel economy standards, but car companies are wary of the uncertainty as California pushes back.

In the letter to President Trump dated June 6, the major automakers said:

“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.”

In a warning to the Administration, the carmakers said:

“For our companies, a broadly supported final rule would provide regulatory certainty and enhance our ability to invest and innovate by avoiding an extended period of litigation and instability, which could prove as untenable as the current program.”

By Tsvetana Paraskova for Oilprice.com

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