White House calls off fuel economy talks with California, promises to issue final rule
By Meghan Gordon / Platts
Petroleumworld 02 22 2019
The Trump administration is moving ahead with a planned rollback of vehicle fuel economy standards after breaking off talks with California, which wants to continue to follow stricter targets along with a dozen other states.
The policy would increase US oil demand by 500,000 b/d, according to the Environmental Protection Agency and Department of Transportation.
The White House, DOT and EPA decided to discontinue talks with the California Air Resources Board, Press Secretary Sarah Sanders said Tuesday in a statement.
"Despite the administration's best efforts to reach a common-sense solution, it is time to acknowledge that CARB has failed to put forward a productive alternative," Sanders said. "Accordingly, the administration is moving forward to finalize a rule later this year with the goal of promoting safer, cleaner, and more-affordable vehicles."
EPA had a target of adopting final vehicle fuel economy standards by March 30, but the extended government shutdown in December and January may have delayed that schedule.
The September proposal by EPA and DOT would freeze light-duty vehicles standards for six years and revoke California's long-held waiver to set its own tougher-than-federal tailpipe limits, which a dozen other states follow.
EPA's proposal argued that booming US oil production has added additional stable supply to the global oil market and "reduced the urgency of the US to conserve energy," one of the goals of the original fuel economy standards.
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Story by Meghan Gordon from Platts / SPGlobal.
spglobal.com 02 21 2019
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