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CAFE complexities

CAFE complexities LAWS OF NATURE LAWS OF NATURE LAWS OF NATURE ost Americans are generally aware that, according to rulemaking, recommending a National Mthe US Environmental Protection Agency (EPA), Program for reducing GHG emissions passenger vehicles account for approximately 40% of US and improving the fuel efficiency of domestic oil consumption, and that increased energy effi- CAFE-regulated vehicles. At the direc- ciency helps reduce dependence on imported oil and tion of President Barack Obama last enhances the nation’s energy security by conserving fossil- spring, the NHTSA and the EPA are taking steps to fuel resources for future generations. Now I – one of the improve fuel efficiency and reduce GHG emissions from few who still drives an old gas guzzler – really feel guilty. mobile sources. The NHTSA plans to prepare an In order to understand some good news on greenhouse-gas Environmental Impact Statement to analyze the potential (GHG) reductions, one has to be acquainted with yet environmental consequences of the agency’s new fuel-effi- another environmental acronym – “CAFE” (Corporate ciency improvement program and yet-to-be-proposed vol- Average Fuel Economy). CAFE is a poorly understood pro- untary compliance standards for selected commercial vehi- gram that has melded federal agencies and state initiatives cles. Designed to provide regulatory certainty and since its creation in 1975. The term is defined as the required consistency for the auto industry, the streamlined standards average fuel economy for a vehicle under the National Program would manufacturer’s entire fleet of passenger replace regulations overseen by the cars and light trucks for each model NHTSA, EPA, and state agencies – year, built for sale in the US. CAFE to better achieve substantial reduc- values are calculated from data gener- tions in fuel consumption and GHG ated by fuel-economy tests; these tests emissions. It would also redesign new are used to determine the fuel-effi- car sticker labels. Meanwhile, the IRS ciency estimates for the Department of would maintain its status as the Transportation’s (DOT’s) Fuel Econ- “Robin Hood” collector general on omy Guide and new-vehicle labels. the turbocharged sports car crowd. Because CAFE-related jurisdiction Just how far will the new National is divided among several federal agen- Program push increased efficiency? A cies, its explanation is somewhat complicated. The EPA coalition of 20 prominent environmental groups, led by the administers the testing program that generates the fuel- Natural Resources Defense Council and Sierra Club, has economy data, determines the procedures for calculating called on the Obama Administration to set a target of 60 mpg CAFE values, and reports CAFE results for each vehicle by 2025. However, DOT and EPA officials say that meeting manufacturer annually to the National Highway Traffic this target is unlikely; environmental and auto industry Safety Administration (NHTSA). Part of the DOT, the experts believe the EPA and the DOT will propose a yearly NHTSA determines whether manufacturers are complying average increase ranging from 3–6% instead (the 60-mpg fig- with CAFE standards and assesses penalties as required. ure would require roughly a 6% annual improvement). The NTHSA is also responsible for establishing and Several sources report that if the 60-mpg standard were met, amending CAFE standards for large trucks – though occa- then by 2030 the US would cut oil dependence by nearly 50 sionally, Congress sets these standards for cars, by statute. billion gallons annually and carbon emissions by more than The Gas Guzzler Tax (included within the Energy Tax 500 metric tons per year. Experts believe that such fuel-econ- Act of 1978) is intended to discourage the production and omy goals can be achieved through the use of new materials, purchase of fuel-inefficient vehicles. It is associated with including plastics and composites, in vehicle construction, new model-year cars (excluding minivans, SUVs, and and cleaner, more efficient engine and transmission systems. pickup trucks) that fail to meet the minimum fuel-economy Automakers prefer a slower approach, one that does not level of 22.5 miles per gallon (mpg). Illogically, the fuel- dramatically affect production costs. But controversies economy figures used to determine the tax are different and opinions abound; Michigan Senator Carl Levin from those provided in the DOT’s Fuel Economy Guide. believes that the country ought to consider dumping the The tax – collected by the Internal Revenue Service (IRS) CAFE program altogether, proposing in mid-October that – is normally paid by the auto manufacturer or importer it be replaced with a mandate that all passenger vehicles after production has ended for the model year and is based be hybrids or electrics by the year 2025. For now, many on the total number of gas-guzzling vehicles that were intro- vehicles – particularly those made by Asian-based compa- duced into commerce in the US. The amount of tax paid is nies – are already close to meeting or even exceeding the displayed on the new vehicle’s window sticker label. US 2016 overall average of 35.5 mpg, leaving my embar- On September 15, in an effort to clarify this intricate state rassing gas guzzler in the dust. of affairs, EPA Administrator Lisa Jackson and DOT Douglass F Rohrman Secretary Ray LaHood signed a joint notice for proposed Chicago, IL © The Ecological Society of America www.frontiersinecology.org www.fueleconomy.gov http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Frontiers in Ecology and the Environment Wiley

CAFE complexities

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Publisher
Wiley
Copyright
© Ecological Society of America
ISSN
1540-9295
eISSN
1540-9309
DOI
10.1890/1540-9295-8.9.499
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Abstract

LAWS OF NATURE LAWS OF NATURE LAWS OF NATURE ost Americans are generally aware that, according to rulemaking, recommending a National Mthe US Environmental Protection Agency (EPA), Program for reducing GHG emissions passenger vehicles account for approximately 40% of US and improving the fuel efficiency of domestic oil consumption, and that increased energy effi- CAFE-regulated vehicles. At the direc- ciency helps reduce dependence on imported oil and tion of President Barack Obama last enhances the nation’s energy security by conserving fossil- spring, the NHTSA and the EPA are taking steps to fuel resources for future generations. Now I – one of the improve fuel efficiency and reduce GHG emissions from few who still drives an old gas guzzler – really feel guilty. mobile sources. The NHTSA plans to prepare an In order to understand some good news on greenhouse-gas Environmental Impact Statement to analyze the potential (GHG) reductions, one has to be acquainted with yet environmental consequences of the agency’s new fuel-effi- another environmental acronym – “CAFE” (Corporate ciency improvement program and yet-to-be-proposed vol- Average Fuel Economy). CAFE is a poorly understood pro- untary compliance standards for selected commercial vehi- gram that has melded federal agencies and state initiatives cles. Designed to provide regulatory certainty and since its creation in 1975. The term is defined as the required consistency for the auto industry, the streamlined standards average fuel economy for a vehicle under the National Program would manufacturer’s entire fleet of passenger replace regulations overseen by the cars and light trucks for each model NHTSA, EPA, and state agencies – year, built for sale in the US. CAFE to better achieve substantial reduc- values are calculated from data gener- tions in fuel consumption and GHG ated by fuel-economy tests; these tests emissions. It would also redesign new are used to determine the fuel-effi- car sticker labels. Meanwhile, the IRS ciency estimates for the Department of would maintain its status as the Transportation’s (DOT’s) Fuel Econ- “Robin Hood” collector general on omy Guide and new-vehicle labels. the turbocharged sports car crowd. Because CAFE-related jurisdiction Just how far will the new National is divided among several federal agen- Program push increased efficiency? A cies, its explanation is somewhat complicated. The EPA coalition of 20 prominent environmental groups, led by the administers the testing program that generates the fuel- Natural Resources Defense Council and Sierra Club, has economy data, determines the procedures for calculating called on the Obama Administration to set a target of 60 mpg CAFE values, and reports CAFE results for each vehicle by 2025. However, DOT and EPA officials say that meeting manufacturer annually to the National Highway Traffic this target is unlikely; environmental and auto industry Safety Administration (NHTSA). Part of the DOT, the experts believe the EPA and the DOT will propose a yearly NHTSA determines whether manufacturers are complying average increase ranging from 3–6% instead (the 60-mpg fig- with CAFE standards and assesses penalties as required. ure would require roughly a 6% annual improvement). The NTHSA is also responsible for establishing and Several sources report that if the 60-mpg standard were met, amending CAFE standards for large trucks – though occa- then by 2030 the US would cut oil dependence by nearly 50 sionally, Congress sets these standards for cars, by statute. billion gallons annually and carbon emissions by more than The Gas Guzzler Tax (included within the Energy Tax 500 metric tons per year. Experts believe that such fuel-econ- Act of 1978) is intended to discourage the production and omy goals can be achieved through the use of new materials, purchase of fuel-inefficient vehicles. It is associated with including plastics and composites, in vehicle construction, new model-year cars (excluding minivans, SUVs, and and cleaner, more efficient engine and transmission systems. pickup trucks) that fail to meet the minimum fuel-economy Automakers prefer a slower approach, one that does not level of 22.5 miles per gallon (mpg). Illogically, the fuel- dramatically affect production costs. But controversies economy figures used to determine the tax are different and opinions abound; Michigan Senator Carl Levin from those provided in the DOT’s Fuel Economy Guide. believes that the country ought to consider dumping the The tax – collected by the Internal Revenue Service (IRS) CAFE program altogether, proposing in mid-October that – is normally paid by the auto manufacturer or importer it be replaced with a mandate that all passenger vehicles after production has ended for the model year and is based be hybrids or electrics by the year 2025. For now, many on the total number of gas-guzzling vehicles that were intro- vehicles – particularly those made by Asian-based compa- duced into commerce in the US. The amount of tax paid is nies – are already close to meeting or even exceeding the displayed on the new vehicle’s window sticker label. US 2016 overall average of 35.5 mpg, leaving my embar- On September 15, in an effort to clarify this intricate state rassing gas guzzler in the dust. of affairs, EPA Administrator Lisa Jackson and DOT Douglass F Rohrman Secretary Ray LaHood signed a joint notice for proposed Chicago, IL © The Ecological Society of America www.frontiersinecology.org www.fueleconomy.gov

Journal

Frontiers in Ecology and the Environment – Wiley

Published: Nov 1, 2010

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