Bush leaves CAFE decision for Obama.
01-07-2009, 08:27 PM
#1
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Bush leaves CAFE decision for Obama.
Bush leaves CAFE decision for Obama
Harry Stoffer
Automotive News
January 7, 2009 - 12:51 pm ET
UPDATED: 1/7/09 1:57 p.m. EST
WASHINGTON -- The Bush administration has decided to punt its promised decision on new fuel economy standards to the Obama administration.
In a statement this morning, the U.S. Department of Transportation said it will not issue final rules for fuel economy standards for the 2011-15 model years as planned.
"The recent financial difficulties of the automobile industry will require the next administration to conduct a thorough review of matters affecting the industry, including how to effectively implement" a new energy law requiring tougher standards, the statement said without attributing it to any individual.
The energy law, enacted in December 2007, requires standards to go up 40 percent by 2020 to a fleetwide average of at least 35 mpg.
The standards for 2009 are 27.5 mpg for cars and 23.1 mpg for light trucks.
Still some time left
The National Highway Traffic Safety Administration proposed a rule for the 2011-15 model years, raising standards by about 25 percent by the end of that period at an estimated cost of about $47 billion to the industry.
The Bush administration had promised a final rule by the end of 2008. But that was before the economic downturn reached crisis proportions for the automobile industry, necessitating federal loans to General Motors and Chrysler LLC to keep them afloat.
Automakers are not happy about the delay because they need certainty in rule-making for their product planning, according to the Alliance of Automobile Manufacturers, representing the Detroit 3, Toyota, Volkswagen and six other automakers.
"We look forward to working with the Obama administration to provide them with any information they need to complete this rule-making. Manufacturers share the goal of enhancing energy security and reducing greenhouse gas emissions," said alliance spokesman Charles Territo.
Federal law requires NHTSA to give automakers at least 18 months lead time before imposing higher standards under the corporate average fuel economy program, or CAFE.
So time remains for the Obama administration to impose higher standards for the 2011 model year -- which, under the CAFE program, begins Oct. 1, 2010.
The deadline for a final rule would be April 1.
The Bush administration statement added that it "has done significant work that will position the next transportation secretary to finalize a rule before the April 1, 2009, deadline."
President-elect Barack Obama has nominated former Rep. Ray LaHood, R-Ill., as the next secretary of transportation, who oversees NHTSA.
Harry Stoffer
Automotive News
January 7, 2009 - 12:51 pm ET
UPDATED: 1/7/09 1:57 p.m. EST
WASHINGTON -- The Bush administration has decided to punt its promised decision on new fuel economy standards to the Obama administration.
In a statement this morning, the U.S. Department of Transportation said it will not issue final rules for fuel economy standards for the 2011-15 model years as planned.
"The recent financial difficulties of the automobile industry will require the next administration to conduct a thorough review of matters affecting the industry, including how to effectively implement" a new energy law requiring tougher standards, the statement said without attributing it to any individual.
The energy law, enacted in December 2007, requires standards to go up 40 percent by 2020 to a fleetwide average of at least 35 mpg.
The standards for 2009 are 27.5 mpg for cars and 23.1 mpg for light trucks.
Still some time left
The National Highway Traffic Safety Administration proposed a rule for the 2011-15 model years, raising standards by about 25 percent by the end of that period at an estimated cost of about $47 billion to the industry.
The Bush administration had promised a final rule by the end of 2008. But that was before the economic downturn reached crisis proportions for the automobile industry, necessitating federal loans to General Motors and Chrysler LLC to keep them afloat.
Automakers are not happy about the delay because they need certainty in rule-making for their product planning, according to the Alliance of Automobile Manufacturers, representing the Detroit 3, Toyota, Volkswagen and six other automakers.
"We look forward to working with the Obama administration to provide them with any information they need to complete this rule-making. Manufacturers share the goal of enhancing energy security and reducing greenhouse gas emissions," said alliance spokesman Charles Territo.
Federal law requires NHTSA to give automakers at least 18 months lead time before imposing higher standards under the corporate average fuel economy program, or CAFE.
So time remains for the Obama administration to impose higher standards for the 2011 model year -- which, under the CAFE program, begins Oct. 1, 2010.
The deadline for a final rule would be April 1.
The Bush administration statement added that it "has done significant work that will position the next transportation secretary to finalize a rule before the April 1, 2009, deadline."
President-elect Barack Obama has nominated former Rep. Ray LaHood, R-Ill., as the next secretary of transportation, who oversees NHTSA.
01-08-2009, 01:36 PM
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Hey, even here in California every other govorner is a Republican. 
I feel LaHood is a very good pick. He's a mainstream republican (an almost extinct breed in this age where you seem to have to pass a litmus test and must be an idealogue), and has a good solid common sense approach to issues. The only down side is that he doesn't have any transportation experience in congress (he's been on Intellegence & Food & Drug).
From what I've read, I have a very high opinion of him. He's not an idealogue, and like what Obama seems to be doing now, has a history of putting what's the best decision ahead of the agenda of those who see terms in only "Liberal and Conservative".
Despite this, his appointment will no doubt irritate the treehuggers, since he isn't one of them.
Screw them.
I think he will be a FAIR & realistic head of NHTSA.
Illinois is as dependent on a healthy car industry as Michigan.
I feel LaHood is a very good pick. He's a mainstream republican (an almost extinct breed in this age where you seem to have to pass a litmus test and must be an idealogue), and has a good solid common sense approach to issues. The only down side is that he doesn't have any transportation experience in congress (he's been on Intellegence & Food & Drug).
From what I've read, I have a very high opinion of him. He's not an idealogue, and like what Obama seems to be doing now, has a history of putting what's the best decision ahead of the agenda of those who see terms in only "Liberal and Conservative".
Despite this, his appointment will no doubt irritate the treehuggers, since he isn't one of them.
Screw them.
I think he will be a FAIR & realistic head of NHTSA.
Illinois is as dependent on a healthy car industry as Michigan.
01-08-2009, 10:03 PM
#5
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Join Date: Dec 2005
Posts: 1,502
Good decision. The government shouldn't be imposing any regulations without coordinating with the "Car Czar" who has overall financial responsibility.
If I understand correctly, this also buys them another year to meet the new CAFE standards.
If I understand correctly, this also buys them another year to meet the new CAFE standards.
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