Pruitt wants to cut emission standards despite their acceptance by industry groups

Environmental Protection Agency administrator Scott Pruitt announced in April he’d likely roll back Obama-era targets for the corporate average fuel economy — CAFE — of cars and light trucks. The targets were intended to reduce the threat to the environment caused by carbon-dioxide emissions and to standardize car-making rules nationwide.

Pruitt threatens to undo the national vehicle emissions policy established in 2012 — even though it’s widely accepted by automakers, the EPA, the National Highway Traffic Safety Administration and the California Air Resources Board.

Pruitt had planned to announce his policy change at a Virginia Chevrolet dealership, but the press event was canceled. Dealers declined to host Pruitt due to fears that they and their brand would be pegged as supporting dirty air. 

Fuel consumption is directly related to carbon dioxide emissions, one of the greenhouse gasses responsible for climate change. The target Pruitt intends to reduce: By 2025, a CAFE of more than 50 miles per gallon.

Experts estimate that if that target were met, the reduction in carbon-dioxide pollution generated by affected vehicles during their lifetimes would be 6 billion tons, cutting oil consumption by 12 billion barrels.

Will Sepic, president of the Wisconsin Auto Truck Dealer Association, said negotiations that led the industry to support cuts in emissions unfolded during a period when two automakers sought bailouts from the federal government.

Automobile Dealers Association of Mega Milwaukee president Jim Tolkan said local dealers and the National Automobile Dealer Association accepted the 2012 agreement. 

However, several industry trade associations, including the National Automobile Dealers Association, asked the EPA to review those goals after Obama officials locked in fuel-economy targets early, before a scheduled midterm review.

Threat of multiple standards

Pruitt’s strident language indicated the EPA would not work in tandem with California, and this alarms the auto industry.

One reason automakers agreed to the Obama-era clean-car rules was certainty: One national policy with an adaptable timeframe. The California Air Resources Board  historically sets stricter standards than the EPA under the 1970 Clean Air Act. CARB says it will fight the EPA’s move to curb the 2025 target. The EPA’s actions could lead to legal battles and possibly two emissions standards in the United States.

“CARB’s rules affect 30 to 40 percent of the American market,” said Tolkan, “because 12 states abide by them.”

Now automakers could face two emissions targets, which would reduce manufacturing economies of scale and increase car prices.

Carmakers — through trade associations including the Alliance of Automobile Manufacturers — say they never wanted to undo the 2022–25 targets or upend CARB’s authority. They wanted tweaks to reflect changes in technology and consumer preference since 2012.

“Emissions and mileage concerns are not just a U.S. situation,” said Tolkan. “China and Europe are going full bore toward strict standards for internal combustion engines.”

Vehicle costs rise, he said, when there are multiple standards. It’s more efficient to have one worldwide target. 

For Wisconsin auto dealers, Tolkan said, “there’s no inherent disagreement with reducing tailpipe emissions.” He would prefer the industry proceed in a predictable pattern. 

Meanwhile, whether consumers will buy cleaner cars isn’t certain. “Some fuel saving methods, such as engine start/stop techniques to cut idling emissions, haven’t been welcomed by consumers,” Sepic said.

Nonetheless, Tolkan and Sepic claim global concerns about climate change mean there will be reductions in tailpipe emissions.