Published

Report: Freeze on U.S. Emission Limits Targets California’s CO2 Rules

A federal plan to freeze future emission and fuel economy standards at 2020 levels also aims to take away California’s power to set its own emission limits, a source tells Bloomberg News.
#economics #regulations

Share

A federal plan to freeze future emission and fuel economy standards at 2020 levels also aims to take away California’s power to set its own emission limits, a source tells Bloomberg News.

Such a plan has been widely expected. The Environmental Protection Agency under the Trump administration has been indicating for months that it wants to cut the state’s regulatory powers.

California has declared its intent to implement the current federal 2022-2025 emission limits for carbon dioxide. But doing so would raise real-world fuel economy for piston-powered vehicles more than 30% over the period. That’s because an engine’s CO2 emissions are directly related to the amount of carbon-based fuel consumed.

Federal law dictates that fuel economy standards can be set only at the federal level. California has a waiver from the Environmental Protection Agency to regulate CO2, thereby giving it de facto power to influence fuel economy performance.

Bloomberg’s source says the rollback proposal sent to the White House this week would rescind the EPA waiver. California has vowed a court challenge if that happens, noting that it has power under the U.S. Clean Air Act to set its own pollution limits.

RELATED CONTENT

  • Ford’s $42 Billion Cash Cow

    F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.

  • Inside Ford

    On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.

  • Porsche Doubles EV Target for 2025

    Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.

Gardner Business Media - Strategic Business Solutions