Trump Reconsidering Obama's Fuel-Economy Standards

The Trump administration Wednesday said it will revisit the Obama White House fuel economy standards that would require automakers to achieve a 54.5 mpg fleetwide standard by 2025.

President Donald Trump announced the move in remarks he delivered to auto industry workers in Ypsilanti, Mich.

In a joint statement released shortly after Trump's remarks, EPA and the Department of Transportation said they will begin a reconsideration of the rule, which was finalized by the Obama administration on Jan. 12.

"Today's decision by the EPA is a win for the American economy," Transportation Secretary Elaine Chao said in the statement.  She said her agency will reopen the Midterm Evaluation process and work with EPA "to complete the review in a transparent, data-driven manner."

EPA Administrator Scott Pruitt added that the standards "are costly for automakers and the American people. We will work with our partners at DOT to take a fresh look to determine if this approach is realistic. This thorough review will help ensure that this national program is good for consumers and good for the environment."

EPA said the Midterm Evaluation process that is being reopened was established as part of the 2012 final greenhouse gas emission standards for model year 2017-2025 cars and light-duty trucks. Under the midterm review, EPA is required by April 1, 2018, to determine whether the 2022-2025 MY standard are appropriate.

"The action the agency is taking today will ensure that deadline is met. If the agency believes that the final determination issued by the previous administration is not realistic, it would submit a new proposal for public comment."

In its reaching its final determination, the Obama White House recommended no changes to the fuel economy standards.

Senate Environment and Public Works Committee Chairman John Barrasso (R-Wyo.) in a Wednesday statement said EPA rushed to finalize the determination under President Obama.

"This upended a carefully negotiated process meant to ensure environmental standards are achievable and that cars remain affordable for American families. President Trump's decision to review the EPA's midnight determination is a commonsense move that gets the process back on track," Barrasso said.

House Environment Subcommittee Chairman John Shimkus (R-Ill.) and Digital Commerce and Consumer Protection Subcommittee Chairman Bob Latta (R-Ohio) both applauded the administration's decision to "resume a collaborative examination" of the standards.

"Our nation's motor vehicles are getting more efficient and will continue to do so, but we must ensure that the standards set are not rigid and that they do not raise sticker prices or threaten the auto industry. We're looking forward to [National Highway Traffic Safety Administration] and EPA's review and remain hopeful they can propose standards that strike the right balance between efficiency and sound economic policy," Shimkus and Latta said in a joint statement.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen said today's decision allows EPA to take a more comprehensive approach to evaluating the standards.

"In 2012, EPA and the [NHTSA] promulgated final regulations establishing the CAFE and GHG standards for 2017-2025. Included in the final rule was a requirement that the agencies conduct a midterm evaluation for the 2022-2025 standards and determine whether the standards established in 2012 were still appropriate in light of the latest available data. The RFA filed extensive comments focused on the role of fuels in enabling more efficient vehicle technologies. By rushing through a cursory review to finalize a rule before the transition, the agency clearly did not fully consider our comments, or the comments of other stakeholders," Dinneen said in a statement.

"We look forward to this opportunity, giving EPA a second chance to conduct a more thorough review of fuel economy rules, vehicle technologies and the fuels that will be necessary to assure success," Dinneen added.

The American Coalition for Ethanol Executive Vice President Brian Jennings said the administration's decision puts the review back on track.

"Now that the review of [model years] 2022-2025 standards will return to the original schedule, we will also be able to make the case that EPA and NHTSA need to provide meaningful incentives for flexible fuel vehicles (FFVs) and engines designed to operate most efficiently on high-octane, high-ethanol blends," Jennings said in statement.  "Currently, the standards are biased in favor of electric vehicles and ignore the role that FFVs and engines optimized to run on blends in the range of E25-40 can play in meeting fuel economy and GHG reduction goals."

High Octane Low Carbon Alliance Chairman Tom Daschle said the previous rule was rushed through without the thorough review that was originally supposed to take place, including looking at fuels and engines as an integrated system.

"We are seeing a clear pattern of consumers wanting to take advantage of lower fuel costs and purchasing larger vehicles. It is clear the internal combustion engine will remain the primary propulsion pathway so let's make those engines as efficient as possible through cleaner, high octane fuels," Daschle said in a statement.

"We have a host of options available to produce such fuels, including adding 20% ethanol to our base fuel of E10 which would provide a low cost 94 octane," Daschle added. "All we are asking EPA to do is look at this and other high octane scenarios and realize we can achieve the goals of the program while providing consumer choice."