UAW to Oppose Trump Plan to Freeze Emission Limits

The United Auto Workers union is scheduled to testify tomorrow that it opposes the Trump administration’s plan to freeze fuel economy standards at 2020 levels, Reuters reports.

Josh Nassar, the UAW’s legislative director, is expected to tell two Congressional subcommittees that the proposed freeze would trigger lengthy litigation and create uncertainty that limits the industry’s growth.

The Environmental Protection Agency and National Highway Traffic Safety Administration say they will issue a final ruling in the next few months that caps carbon dioxide and fuel economy goals next year. Both standards currently are set to rise significantly between 2021 and 2016. California has vowed to sue if a freeze is imposed—and implement the original standards anyway.

The cap would raise U.S. oil consumption by 500,000 barrels per day but lower the auto industry’s cost of complying with tougher standards by $300 billion, regulators estimate. They say the resulting savings would make new cars about $1,900 cheaper than those built to meet the tougher original standards.

The freeze also means that, at today’s gasoline prices, owners would spend roughly $27 million more per day to fuel their new vehicles. The estimate is calculated from AAA’s gasoline price reports and U.S. Energy Information Administration data that says a barrel of oil yields 20 gallons of gasoline.