Government Outlines Details of Program To Boost Fuel Economy and Cut Greenhouse Gases

WASHINGTON — The federal government on Tuesday outlined proposed new standards to improve fuel economy and impose a first-ever greenhouse gas standard on cars and trucks on U.S. roads. But critics almost immediately described the plan as "needlessly complicated and burdensome."

The proposals are a joint effort by the U.S. Department of Transportation and the Environmental Protection Agency. They would go into effect with model-year 2012.

The proposed national program would mandate corporate average fuel economy or CAFE standards to a fleet-wide average of 35.5 miles per gallon in model year 2016, four years ahead of the schedule Congress set forth in a 2007 energy law. It would also require model-year 2016 vehicles to meet an estimated combined average emission level of 250 grams of carbon dioxide per mile.

"The greenhouse gas emission reductions this program would bring about are equivalent to the emissions of 42 million cars," said the EPA and U.S. Department of Transportation in a joint statement.

The announcement expands upon the details of President Obama's May decision to combine the legal authority the EPA was granted by the U.S. Supreme Court to regulate greenhouse gas emissions with the Department of Transportation's mandate to regulate fuel economy under the CAFE program. It also takes into account California's rights under the Clean Air Act.

"We're taken the historic step of proposing the nation's first ever greenhouse gas emissions standard for vehicles and moved substantially closer to an efficient, clean energy future," said EPA administrator Lisa P. Jackson in a statement.

But a statement by the National Automobile Dealers Association raised some concerns about the administration's plan. "The administration has chosen a needlessly complicated and burdensome path involving three different agencies (NHTSA, EPA and the California Air Resources Board), each regulating fuel economy under three different statutes," the NADA said in a statement on Tuesday. "For example, under California's fuel economy rule, certain models could be restricted in certain states, which would limit consumer choice."

General Motors also weighed in on the proposed new auto standards, noting that "a strong, single national fuel economy standard will benefit consumers and automakers alike by helping get more clean and efficient vehicles on the road quickly and more affordably.

"Greater consistency and certainty among a variety of regulations will help a new GM execute its current product plan centered on new technologies and more highly fuel-efficient and quality cars and trucks."

Inside Line says: Nothing is cast in stone yet and you can be sure there will be some fighting over these ambitious federal plans. — Anita Lienert, Correspondent