White House Rejects Last Pleas on Fuel Economy Rules

The Trump administration made it clear at a congressional hearing yesterday that it is determined to vehicle freeze fuel economy standards this summer, shrugging off dire consequences predicted by the auto industry.

Federal regulatory chiefs from the Environmental Protection Agency and National Highway Traffic Safety Administration rejected repeated calls from carmakers, suppliers and other stakeholders to find a compromise.

Without one, they say, an inevitable and protracted legal battle with California over the freeze will hike costs, hurt sales and threaten jobs.

The White House signaled its hardened position after cutting off talks with California regulators in January. A month later, senior federal regulators reportedly delivered an “us-or-them” ultimatum to industry representatives during a tense conference call.

Earlier this month the White House also rejected a renewed plea by 17 carmakers for a compromise, again blaming California for the impasse.

The Trump administration intends to freeze emission and fuel economy standards in 2021 rather than implement the currently mandated series of tougher rules through 2026. California, which has congressionally granted power to set its own regulations, intends to enforce the stricter rules anyway.

The White House plan also aims to strip California of its rulemaking authority. The state has pledged that any effort to do so will prompt its own wave of legal challenges.

Until both legal conflicts are resolved, carmakers face the prospect of satisfying two sets of standards. One array will apply to vehicles sold in most states. A second set of tougher California regulations will apply to vehicles sold there and in a dozen other states that have opted to follow California’s standards.