New EPA chief reignites C02 battle

AUTO companies in the US might face the spectre of tougher state-by-state limits on CO2 emissions under the new Obama administration.

President-elect Barack Obama’s nominee to run the US Environmental Protection Agency (EPA), Lisa Jackson, told a Senate hearing in Washington this week that she would “immediately revisit” a request from California for a federal government waiver to allow it and 17 other states to go ahead with more stringent fuel-economy rules.

The Californian waiver application had been knocked back by the Bush administration, which instead introduced a new federal energy law requiring corporate average fuel economy (CAFE) standards to be raised 40 per cent by 2020 to a fleet-wide average of at least 35mpg (6.7L/100km).

The standards for 2009 are 27.5mpg (8.5L/100km) for cars and 23.1mpg (10.2L/100km) for light trucks.

Automakers and their allies oppose state-by-state regulation of greenhouse gases. They say such rules are an indirect attempt to regulate fuel economy, which is a federal responsibility.

Left: EPA Administrator, Lisa Jackson.

They also say state rules would add costs and create market chaos, especially for dealers near borders with states that don't have their own rules.

Testifying Wednesday before the Senate Environment and Public Works Committee, which is holding a confirmation hearing for Obama's EPA nominee, Ms Jackson stated her commitment to revisit the greenhouse gas issue.

In response to a question from Californian Senator and committee chairwoman Barbara Boxer, Ms Jackson said: “If I am confirmed I will immediately revisit the waiver, looking at the science and the rule of law, and relying on the expert advice of EPA’s employees in making a determination.” Automotive News reported that EPA employees had told current administrator Steve Johnson that federal law and climate science required him to approve California’s request, but Johnson rejected it. Several states have sued over the rejection.

Detroit automakers and their foreign competitors have waged a long legal fight against California's rules that set new limits on vehicle emissions to fight global warming, which 17 other states have adopted or vowed to put in place.

Such rules would lead to fuel economy targets that automakers and dealers warn would create a patchwork of state laws, drive up costs and limit sales.

The Alliance of Automobile Manufacturers has said it wants to work with the Obama administration to improve fuel economy and reduce greenhouse gases. But spokesman Charles Territo said the alliance thinks a single national standard is "the best way to do so".

The alliance represents the Detroit Big Three – GM, Ford and Chrysler – along with eight other automakers, including Toyota.