Automakers Join Emissions Suit Against California

Motor,  Jan 2005  by Nash, Tom

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The Alliance of Automobile Manufacturers (AAM), whose membership includes DaimlerChrysler, General Motors and Ford, has joined a group of automobile dealers in California to challenge the regulation of motor vehicle fuel economy under California's greenhouse gas law.

The AAM and the auto dealers claim the new standards would effectively mean selling vehicles with much higher fuel economy than is currently mandated, and that setting fuel economy standards is solely the province of the National Highway Traffic Safety Administration (NHTSA), not any single state. They claim that allowing California to set standards could lead to other states setting their own standards, potentially resulting in 50 different sets of rules.

California's plan would force carmakers to meet drastically tougher air quality standards. In September, the California Air Resources Board (CARB) proposed rules that would compel the automakers to reduce tailpipe emissions for passenger vehicles and trucks.

In a statement released in early December, AAM cited five principles that guide its legal challenge, to this as well as to any future regulation of fuel economy:

1. Regulators must follow the law. Federal law grants sole authority to NIITSA to set a uniform, national fuel economy standard.

2. Fuel economy should continually improve, but must be balanced with safety, jobs and other concerns. NHTSA must balance technological feasibility, affordability, safety, emissions controls, consumer choice and effects on American jobs.

3. Consumer choice must be preserved, with all consumer impacts considered. Under the greenhouse gas regulation, all Californians purchasing new vehicles would pay significantly more than consumers in other states.

4. Regulations must be achievable, and should provide social benefits worth their costs. The regulation outlines a theoretical vehicle never before built, which, if built, wcjuld not achieve the expected fuel efficiency. The regulation addresses only carbon dioxide, not smog.

5. Advanced technology should be driven by consumer demand. Automakers are investing billions of dollars to develop and introduce new fuel-efficient automobiles with cutting-edge technologies. Consumer tax incentives can help spur sales of these vehicles. The government should let consumers and the marketplace choose which technologies make sense for them.

"Federal law is designed to ensure a consistent fuel economy program across the country," said Fred Webber, president & CEO of the Alliance. "There's a better way to improve fuel economy than this regulation, such as providing consumer tax incentives for the purchase of our new advanced technology vehicles.

"This regulation is inconsistent with federal law, as well as fundamental principles for sound regulation of motor vehicles. It leaves us with no alternative but to join dealers in a legal challenge on behalf of automakers, dealers and consumers," he said.

Copyright Hearst Business Publishing Jan 2005
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