Obama's Fuel Economy Standards Threaten the Economy

July 26, 2011 RSS Feed Print
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Remember when, in the State of the Union address, President Barack Obama promised to launch an assault on needless, duplicative, wasteful federal agencies and regulations? Neither does he.

Thanks to Obama, the U.S. government now has three agencies--the National Highway Transportation Safety Administration, the Environmental Protection Agency, and the California Air Resources Board--involved in the effort to improve through mandates the fuel economy of U.S. passenger vehicles.

Before 2009, when the current administration added EPA and CARB to the mix, the issue was more or less the sole province of NHTSA. [Check out editorial cartoons about energy policy.]

Why the change? Under the old rules Congress required NHTSA to consider what an increase in the Corporate Average Fuel Economy or CAFE standard would do to jobs and to the affordability and safety of vehicles in the U.S. passenger fleet. EPA and CARB are bound by no such rules; indeed CARB, as a state agency, is largely outside the jurisdiction of the U.S. Congress--which is probably why EPA and CARB are the ones drafting the next round of fuel economy regulations.

The standard for model year 2016 is already 35.5 miles per gallon, which the auto industry says will reduce greenhouse gas emissions by 960 million metric tons and save 1.8 billion barrels of oil at a cost to it of more than $50 billion. But that's not good enough. [See political cartoons about gas prices.]

Federal regulators at the EPA, working with their counterparts in Sacramento at CARB, are trying to get around Congress in an effort to mandate that the CAFE standard be bumped all the way up to 56 miles per gallon for model years 2017 to 2025, a move that is certain to batter the already teetering U.S. auto industry even further while making cars less safe and more expensive.

U.S. Rep. Steve Austria is trying to put a stop to this. The Ohio Republican successfully amended the Interior and Environment Appropriations Bill for Fiscal Year 2012 so that NHTSA may continue to regulate fuel economy according to the program Congress established--rather than EPA and CARB. The Austria Amendment bars EPA from spending funds to write its own new duplicative rules and prohibits it from spending funds to allow California to enforce fuel economy rules separate from what NHTSA determines is necessary.

It's important to consider the ramifications an increase in the CAFE standard would have for the U.S. economy. Leaving NHTSA in charge of the implementation and rule-making, as Austria's amendment provides, makes sure that happens. Going down the path Obama wants, with multiple regulators crafting a so-called "national plan" raises costs and may put more than two hundred thousands U.S. jobs at risk according to industry estimates. Despite what critics of the change back say, there is nothing that would prevent NHTSA from writing new rules for future model years that take into account market demand and consumer acceptance of new electric vehicle technology.

[See a roundup of cartoons about the economy]

Admittedly, CAFE standards are something of a muddle-headed policy to begin with but that's no excuse for making things worse. Parceling out the responsibility for drafting and enforcing new standards is merely a way for Obama to get around Congress. It's bad practice from a constitutional standpoint and what it is intended to do would generate bad policy. In short, it's a loser across the board. The president should make good on his promise to streamline government and get EPA and CARB out of the CAFE business for good.

Tags:
greenhouse gases,
National Highway Traffic Safety Administration,
EPA,
environment,
cars

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The current proposal is to increase fuel economy by 5% per year from 2107 to 2025. This would lead to a standard of about 55 mpg in 2025 but a standard of a little over 37 mpg in 2017.

The only way to achieve this by 2025 is to have at least half of all new cars be electric (such as the Nissan Leaf) or an electric gas engine combo (such as the Chevy Volt).

These cars cost at least $10,000 per year extra over conventional cars. How does the administration plan to get individuals to buy these cars?

Bob of TX 10:28AM July 27, 2011

Although the masses really didn't comprehend how much catalytic converters would improve the air when they were required on new models rolling of the assembly lines "back in the day," air quality has definitely improved especially behind another vehicle.

However, most people in America really do not care for legislation starting in the west and regulating the nation eastward. I do not live in California and my state does not have the issues California has. I do not want California dictating my lifestyle in another state.

I suppose the EPA would have us put main sails atop our subcompacts and let the wind drive us down the road.

http://www.morempgforsure.com

Robyn of TX 9:37PM July 26, 2011

that has benefited this country?

or

Blacks?

or

Hispanics?

or

Economy?

Has anything program or policy that he has put into place improved any aspect of our lives?

Everyone should go back and listen to all the obummer hype in 2007/2008 and then ask yourself “was this really the guy for the job?” All the warning signs were there, voting record, resume, & the friends he kept. I hope and pray that America has learned its lesson and starts to really access the quality of the person requesting your vote. The sad thing is we have come to expect everyone to be perfect and to have never made a mistake. Anyone that has had great success, has also had great failures. Failures are the things that teach us long term lessons. We need to look at the candidates like we do athlete. Do we judge Michael Jordon by the number of missed shots or Babe Ruth by the number of strike outs, no we judge them of their successes, just image what the political world would look like if we did the same. I not saying that is anyone that breaks the law they should get a pass, but just because one person from a party does something does make the entire party bad. The same thing goes for race, we have to stop the broad brush finger pointing and

I find his leadership from behind to be very odd at best. He promised he would fix anything and everything, but has done very little to fix anything. He has been a very non-inspirational figure and will go down in history as a complete failure as the President of the United States. What a miss opportunity to go down in history as a great President and to inspire generations of Americans.

The Hope is gone and the change has been for the worse.

He told us in his own words that after 3 years things were not better, then he should be fired.

Larry of CA 12:38PM July 26, 2011

Peter Roff

Peter Roff

Peter Roff is a contributing editor at U.S. News & World Report. Formerly a senior political writer for United Press International, he’s now affiliated with several public policy organizations including Let Freedom Ring, and Frontiers of Freedom. His writing has appeared in National Review, Fox News’ opinion section, The Daily Caller, Politico and elsewhere. Follow him on Twitter @PeterRoff.

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