EPA, NHSTA Warn Obama Administration’s Goal Of 54.5 MPG By 2025 Difficult
A new report from the EPA and the National Highway Traffic Safety Administration is warning that the Obama Administration’s proposed fuel efficiency standard of 54.5 miles per gallon by 2025 is going to be difficult to achieve. The Wall Street Journal reports that the study cited an unanticipated increase in SUV and pickup sales amid dramatically lower gas prices as the main obstacle to reaching the mileage targets. However, the report said the industry has the technical ability to reach the targets despite these challenges. The New York Times reports that release of the report “sets up a battle between car companies and environmental groups to influence the final mileage rules.” If the fuel economy number remains below federal targets, environmentalists say it will translate into higher levels of carbon dioxide emissions and “undercut efforts to curtail greenhouse gases agreed to by the Obama administration” at the Paris climate accord. The Detroit Free Press says the draft report from the EPA and NHTSA “will come as a disappointment to automakers” who argue that federal fuel economy benchmarks should be relaxed. But Janet McCabe, acting assistant administrator for EPA’s Office of Air and Radiation, said in a statement that the report “shows that automakers are developing far more technologies to improve fuel economy and reduce greenhouse gas emissions, at similar or lower costs, than we thought possible just a few years ago,” and that there are no actual technological barriers to achieving the fuel economy standards by 2025. The Hill reports that this draft technical report does “not constitute a decision to tighten the rules or even a proposal to do so, but the finalized version of it is likely to weigh heavily on the evaluation.” Meanwhile, the AP reports that “if gas prices stay low and consumers keep buying less-efficient vehicles like SUVs, the government could lower those standards.”
What This Means For Small Businesses
For years, the Obama Administration’s fuel efficiency standards for consumer vehicles have served as an example of this White House’s focus on further increasing an already burdensome regulatory environment. It should come as no surprise that a new report shows these lofty fuel standards will be tough to meet. The EPA and NHTSA should use this data as an opportunity to consider whether or not the 54.5 MPG standard is really worth keeping in place given continued consumer demand for SUVs and trucks.
Additional Reading
The Washington Post and Bloomberg News also cover the latest report.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
