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Trump expected to roll back U.S. fuel-economy requirements

  • March 15, 2017
  • Business

Moving forcefully against Obama-era environmental rules, President Donald Trump is set to announce in Michigan plans to re-examine U.S. federal requirements that regulate the fuel efficiency of new cars and trucks.

Trump is expected to reveal his plans during an appearance Wednesday at the American Center for Mobility in Ypsilanti, Michigan, where he’ll challenge the Corporate Average Fuel Economy (CAFE) emissions targets that were a centrerpiece of former president Barack Obama’s strategy to combat global warming. The rollback underscores the Trump administration’s rejection of mainstream climate science in an effort to boost economic growth.

The centre, about 48 kilometres west of Detroit, was used to produce B-24 bombers during the Second World War and is now in the process of being converted into an automotive testing and product development centre. While visiting there the president is expected to meet with auto executives and workers and discuss “how his plans for rolling back federal red tape will lead to more American jobs and higher wages, specifically in the automobile sector,” Press Secretary Sean Spicer told reporters.

The EPA under Obama’s stewardship had promulgated a rule for cars and trucks requiring a fleet-wide average of 36 miles per gallon in real-world driving by 2025. That fuel consumption figure equates to just over 6.5 litres per 100 kilometres.

Gas pump

Trump’s move will roll back the Corporate Average Fuel Economy (CAFE) emissions targets, which were a key piece of former president Barack Obama’s strategy to combat global warming. (The Associated Press)

Trump’s move will have no immediate effect. But it is expected to set the stage for weaker fuel efficiency standards as well as drawn-out legal battles with environmental groups and states such as California that have adopted their own tough tailpipe standards for drivers.

The president will target the Obama administration’s January decision to lock in strict gas mileage requirements for cars and light trucks, ending a review process before the Democrat left office.

Back in 2012, the Obama administration set fuel-economy regulations for model years 2017-2025 and agreed to complete a midterm evaluation by 2018. But seven days before Obama left office, the EPA decided to keep the stringent requirements it had set in place for model years 2022 to 2025. The industry balked at the decision, insisting it was rushed through to beat the change in administrations.

Changes to U.S. fuel consumption requirements could result in matching changes in Canada. Back in 2012, Peter Kent, the environment minister in the Conservative government of the time, unveiled new rules aimed at cutting emissions and fuel consumption after the U.S. government finalized its own standards.

At the time, the Canadian Vehicle Manufacturers’ Association said it supported the tougher fuel standards, stating that harmonization with the U.S. would allow companies to spread anticipated increased costs over a larger consumer base.

More study before standards set

Trump will announce that he’s putting that midterm review back on track, so officials can spend another year studying the issue before setting new standards in 2018.

While the administration has not said explicitly it wants to weaken the standards, a senior White House official said the Obama-era EPA had ignored reams of data cited by the automotive industry. The official spoke on condition of anonymity at a White House briefing in order to outline the action, despite the president’s criticism of the use of un-named sources.

The Alliance of Automobile Manufacturers, which represents a dozen major car manufacturers including General Motors, Ford, Fiat Chrysler and Toyota, last month urged EPA Administrator Scott Pruitt to relax the standards, saying they will drive up car costs, price customers out of the market and depress the industry. Obama’s EPA had argued the costs to consumers were mitigated by gas savings and that the rules would decrease greenhouse gas emissions that contribute to global warming.

Trump campaigned on eliminating “job killing” regulations, and the administration is expected to take additional steps in the coming days to roll back environmental regulations.

Environmentalists expect Trump to ease the gas mileage requirements. “This change makes no sense. Mileage standards save consumers money at the gas pump, make Americans less dependent on oil, reduce carbon pollution and advance innovation,” said Rhea Suh, president of the Natural Resources Defence Council.base.

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