Christina Switzer

April 27, 2008

For the first time since 1975, the Department of Transportation ("DOT") is increasing the fuel efficiency standards for passenger cars. On April 21, DOT issued a notice of proposed rulemaking ("NPRM") that would increase federal fuel efficiency standards by 25% starting in 2010. The agency said that it expects the rule to save Americans $100 billion in fuel costs over the lifetime of their vehicle. The DOT noted that the increase is 3.3% over the minimum Congress ordered in the Energy Independence and Security Act of 2007.

Additionally, the NPRM proposes to use an approach based on vehicle attributes, similar to the approach used for light trucks in 2006. The NPRM also proposes to modify CAFE credits, permitting manufacturers to trade CAFE credits between each other as well as allowing manufacturers to shift credits between compliance categories.

Although states initially cheered the federal proposal, they became concerned after they discovered a provision that would expressly preempt state authority to regulate tailpipe emissions. On April 25, twelve governors signed two letters, one to President Bush and the other to Congress, urging them to reconsider the provisions that would preempt state authority. While they congratulated the agency's action to increase CAFE standards, they criticized the preemption action. The governors argue that the NPRM violates the Clean Air Act and the Supreme Court's ruling in Massachusetts v. EPA. House Speaker Nancy Pelosi and Senator Barbara Boxer, chairwoman of the Environment and Public Works Committee, spoke out in favor of the states' positions and promised to work together on the issue.

Sources:
Avg. Fuel Economy Stds Passenger Cars & Light Trucks Model Years 2011-2015, 49 C.F.R. pts. 523, 531, 533, 534, 536 & 537 (proposed Apr. 21, 2008).

Letter from the Governors of CA, CT, MD, MA, NJ, NM, NY, OR, PA, VT, & WA to Congress (Apr. 23, 2008), available at http://stevens.vermontlaw.edu:2069/features/documents/2008/04/25/document_gw_01.pdf.

Letter from the Governors of CA, CT, MD, MA, NJ, NM, NY, OR, PA, VT & WA to Pres. Bush (Apr. 23, 2008), available at http://stevens.vermontlaw.edu:2069/features/documents/2008/04/25/document_gw_02.pdf.

Press Release, DOT, Secretary Peters Proposes 25 Percent Increase in Fuel Efficiency Standards Over 5 Years for Passenger Vehicles, Light Trucks (Apr. 22, 2008), available at http://stevens.vermontlaw.edu:2069/features/documents/2008/04/25/document_gw_02.pdf.

Josh Voorhees, Governors Join Call to Block New CAFE Proposal, Greenwire, Apr. 25, 2008, http://stevens.vermontlaw.edu:2069/Greenwire/2008/04/25/3/.