EPA shocks auto industry with proposal to set fuel efficiency standards ahead of schedule

According to foreign media reports, the US Environmental Protection Agency (EPA) recently proposed to advance the 2025 vehicle fuel efficiency standards and provide 30 days for public comments, so that the 2025 emission standards will be finalized before Obama leaves office on January 20 next year, and no changes will be needed. This news shocked the US auto industry and caused dissatisfaction with the regulatory authorities.

In 2012, the United States announced that the fuel efficiency standard for light vehicles would be raised to 50 mpg in 2025. As the current US consumer market is shifting from sedans and hybrids to high-fuel-consuming models such as light trucks, it is very difficult to meet the standards set in 2012. Therefore, this standard may be challenged after the next administration nominates a new EPA director. In July, the federal government and California regulators conducted a mid-term review on whether the 2025 fuel efficiency standards should be tightened, relaxed or remain unchanged. As part of the review, automakers and relevant departments will participate in the discussion before the new EPA chairman makes a decision next year, and the final ruling will be finalized in April 2018.

The EPA's direct announcement of advancing the fuel efficiency standards ahead of schedule means that the fuel efficiency standards for light vehicles in 2025 will be determined before Obama leaves office, strongly responding to Trump's challenge. Previously, Trump called for the rollback or re-examination of some federal regulations and questioned measures to address climate change.

EPA: No changes required

Based on an analysis of fuel economy improvements and feedback from automakers, the EPA said no changes are needed to the 2025 fuel efficiency standards.

The EPA said its "extensive technical analysis" showed that many automakers had made significant improvements in vehicle fuel efficiency, matching their 2012 forecasts and in some cases slightly below forecasts.

Janet McCabe, acting assistant administrator of the EPA's Office of Air and Radiation, said in a press release, "Due to the rapid development of technology in the automotive industry, current scientific and technological achievements are sufficient to support the 2025 fuel efficiency standards. Regulators have determined that it is not appropriate to change the standards at this time, which will bring uncertainty. Based on these standards, the automotive industry has invested heavily in fuel economy technology and reductions. Once any changes are made, it will affect the original plan."

McCabe also said, "When the standards were set in 2012, it just said the deadline was no later than April 2018, and there was no requirement for a specific date for making a final decision." McCabe made the decision based on extensive analysis and rigorous technical records, not because of Trump's actions. "We really didn't consider that."

Luke Tonachel, director of the Clean Cars and Fuels Program at the Natural Resources Defense Council, said the new fuel efficiency standards are accomplishing their original purpose. "They will protect our health, prevent more polluted weather, save billions of gallons of fuel, and save owners about $4,000 over the life of their vehicles," he said, adding that there was no evidence to support their need to stop.

Car manufacturers: perverse and naive

But the Alliance of Automobile Manufacturers disagreed with McCabe and Tonachel, saying the move was intended to "rush" a decision before Trump took office and called the shortened review process "unusual and naive."

Just a few weeks ago, the coalition wrote to Trump's transition team, asking it to review all regulations and asking the future administration to prevent the EPA from making any decisions on fuel efficiency standards before Trump has the power to organize talks with manufacturers.

The Alliance of Automobile Manufacturers said, "From the beginning, the two pillars of fuel efficiency standards have been the One National Program concept and rigorous, fact-based mid-term evaluations. However, as it stands now, it seems that both pillars have been compromised."

The One National Program regulation came into effect in 2012 and aims to unify vehicle CO2 emission standards regulated by the EPA and California Air Resources Board with corporate fuel economy targets regulated by the U.S. NHTSA. The program is a landmark initiative promoted by the Obama administration and provides strict new regulations that are uniform across the country and aim to reduce fuel consumption and CO2 emissions. The mid-term evaluation is intended to ensure the applicability of the EPA program in the final four years.

Although no longer calling for a rollback of standards, automakers hope regulators will carefully consider market realities when considering policy adjustments, such as low gasoline prices, consumer preferences, and low sales of hybrid and electric vehicles. John Bozzella, CEO of the Association of Global Automakers, said that while its members worked in good faith with the EPA, they were disappointed that the EPA chose to ignore some realities.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.