{"id":113118,"date":"2017-01-13T15:31:36","date_gmt":"2017-01-13T20:31:36","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=113118"},"modified":"2017-01-13T15:31:36","modified_gmt":"2017-01-13T20:31:36","slug":"epa-finalizes-54-5-mpg-standard","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2017\/01\/epa-finalizes-54-5-mpg-standard\/","title":{"rendered":"EPA Finalizes 54.5 MPG Standard"},"content":{"rendered":"
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President Barack Obama pushed to keep tougher fuel economy standards expected to phase in 2022 over automaker objections.<\/figcaption><\/figure>\n

After an extensive midterm review, the U.S. Environmental Protection Agency has locked in place the strict, 54.5 mile per gallon Corporate Average Fuel Economy, or CAFE, standard set to phase in between 2022 and 2025.<\/p>\n

The decision, which regulators had signaled was likely in late November, could set up second-guessing and a reversal by the regulation-averse Trump Administration coming into office later this month. The tough new standard had been strongly opposed by the auto industry and its supporters that claimed it could price vehicles out of reach of many American motorists.<\/p>\n

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Subscribe to Stay on Top!<\/figcaption><\/figure>\n

EPA Administrator Gina McCarthy dismissed such concerns, in a statement noting, \u201cMy decision today rests on the technical record created by over eight years of research, hundreds of published reports including an independent review by the National Academy of Sciences, hundreds of stakeholder meetings, and multiple opportunities for the public and the industry to provide input.\u201d<\/p>\n

After years of stagnation, the government and the auto industry agreed to a series of increases to CAFE, reflecting growing concerns about global warming, as well as desires to reduce dependence upon foreign oil. But a compromise agreement hammered out in 2012 called for a review of the guidelines to assess whether the target was achievable or necessary.<\/p>\n

Since the rules were enacted, significant changes have occurred in the U.S. automotive marketplace. One dominant sedans, coupes and other passenger cars have lost significant momentum. Utility vehicles, vans and pickups now account for almost two-thirds of new vehicle sales. And while the mileage rules offer some flexibility, manufacturers have asserted that shifting demand \u2013 as well as cheap gasoline \u2013 make it too difficult to meet the CAFE target.<\/p>\n

“The EPA decision is disappointing,\u201d said Gloria Borquist, the vice president of\u00a0communications and public affairs for the industry trade group, the Auto Alliance, said in a statement. \u201cOur fundamental priority remains striking the right balance to continue fuel economy gains and carbon reduction without compromising consumer affordability and vital auto-sector jobs.”<\/p>\n

A study released last September by the Center for Automotive Research in Ann Arbor, Michigan, warned that holding to the 54.5 mpg target could cost as many as 137,900 jobs through 2025, due to a sharp decline in car sales because of rising prices. Some earlier studies had suggested that a typical vehicle could cost as much as $10,000 more by 2025.<\/p>\n

(Trump nominates Oklahoma AG to head EPA. <\/em>Click Here<\/a><\/span>\u00a0for details.)<\/em><\/strong><\/p>\n

Critics dismissed the study as biased to favor the auto industry, noting that since the first fuel economy rules were enacted four decades ago, automakers have routinely overestimated the negative impact. A key question is how much of a shift there will need to be from today\u2019s gas- and diesel-based engines to electrified powertrains. Even if a large number of 2025 models were to switch to pure battery-electric power, however, proponents note battery prices are falling rapidly.<\/p>\n

If anything, some advocates of raising the mileage standard contend it will result in new jobs, pointing to such things as the Tesla Gigafactory battery plant that has just gone into production in Reno, Nevada.<\/p>\n

\u201cThese standards aren\u2019t just about cars and trucks,\u201d said the BlueGreen Alliance\u2019s Executive Director Kim Glas. \u201cMiles-per-gallon targets are spurring investment, creating and securing American jobs, cutting pollution, and building a better quality of life for families across the nation\u2014 its common sense to continue this momentum.\u201d<\/p>\n

Calling CAFE \u201ca pocketbook issue\u201d for Americans, the Consumer Federation of America pointed to what it called widespread support for better mileage by U.S. motorists.<\/p>\n

(<\/em>Click Here<\/a><\/span>\u00a0for the story\u00a0about Obama\u00a0upholding tougher CAFE standards.)<\/em><\/strong><\/p>\n

\u201cConsumers across the board want more miles-per-gallon, and they understand that national standards provide automakers with sensible targets they otherwise might not achieve,\u201d Jack Gillis, CFA\u2019s Director of Public Affairs and author of The Car Book. \u201cGas prices are low now, but they won\u2019t always stay this low.\u201d<\/p>\n

The midterm CAFE review was supposed to be completed by both EPA and the National Highway Traffic Safety Administration. But Administrator Mark Rosekind said this week NHTSA won\u2019t be able to finish its part of the process before the Trump Administration takes office. It remains uncertain what that might mean considering President-elect Donald Trump\u2019s questioning of global warming and desire to reduce federal regulations.<\/p>\n

Even if the new White House team did try to roll back the mileage rules, however, it might not have as much impact as that might seem.<\/p>\n

\u201cWe\u2019re already well into planning for our next generation of products,\u201d John Mendel, the top American executive at Honda recently told TheDetroitBureau.com.<\/p>\n

(Trump facing latest tough choice: oil or corn. To find out more,\u00a0<\/em>Click Here<\/a><\/span>.)<\/em><\/strong><\/p>\n

\u201cThe reality is (industry) product plans are already in motion,\u201d said Rebecca Lindland, a senior analyst with Kelley Blue Book, adding that in an industry that typical is working four to six years out, \u201c2002 is tomorrow.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

After an extensive midterm review, the EPA locked in place the strict, 54.5 mile per gallon Corporate Average Fuel Economy, or CAFE, standard \u2014 over the objections of automakers. Will it stand? Find out at TheDetroitBureau.com.<\/p>\n","protected":false},"author":2,"featured_media":70962,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/113118"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=113118"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/113118\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/70962"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=113118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=113118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=113118"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=113118"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=113118"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=113118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}