New National Automotive Standards Proposed

President Obama today announced new, tighter national automobile emission standards that will take effect with the 2012 model year, and that will ultimately require an average fuel economy standard of 35.5 mpg in 2016. The new standards are projected to save 1.8 billion barrels of oil over the life of the program and reduce greenhouse gas emissions accordingly.

In September 2004 the California Air Resources Board Board passed regulations to reduce greenhouse gases from new passenger vehicles starting in 2009. These regulations were authorized by the 2002 state legislation, Assembly Bill 1493 (Pavley) (PDF). Calling for reducing greenhouse gas emissions from California passenger vehicles by about 22 percent by 2012 and about 30 percent by 2016, the regulations were stalled by automaker lawsuits and the U.S. EPA’s refusal to grant California an implementation waiver. The new policy makes the issue of a waiver moot, and in effect adopts California’s rule as the national standard, although automakers will be given more time to adapt. Obama’s decision also provides relief to 16 other states that have adopted California’s stringent standards, but that like California, had been prevented from implementing them.

"For seven long years, there has been a debate over whether states or the federal government should regulate autos. President Obama's announcement ends that old debate by starting a federal rulemaking to set a National Program," said Dave McCurdy, president and CEO, Alliance of Automobile Manufacturers. "Automakers are committed to working with the President to develop a National Program administered by the federal government."

The new rules will be a powerful tool for the San Francisco Bay Area as it works toward coming into compliance with Assembly Bill 32, the California Global Warming Solutions Act of 2006, and Senate Bill 375 (2008), which together require major reductions in statewide and regional greenhouse gas emissions.