Auto Alliance Pushed Climate Denial to Get Trump Admin to Abandon Obama Fuel Efficiency Standards

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The Trump administration officially announced Monday that it will scrap fuel economy and emissions targets for cars and light-duty trucks sold in the United States and set new weaker standards, effectively undermining one of the federal governmentโ€™s most effective policies for reducing greenhouse gasย emissions.

As the New York Times and the Los Angeles Times anticipated late last week, the two agencies responsible for auto standards โ€” the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) โ€” both claimed that their internal reviews have found the Obama-era standards to be too strict, and that the agencies would go back to the drawing board to revise standards for model yearsย 2022-2025.ย 

The weaker standards, expected to be revealed in coming months and reported to be well below the current targets of 54.5 miles per gallon (or roughly 35 miles per gallon in real-world driving conditions), will be celebrated as a victory for the automakers, whichย have been lobbying the Trump administration since the day after the presidential election and which used a major trade group to peddle climate science denial in support of theย rollback.

โ€œThe Obama administration’s determination was wrong,โ€ EPA administrator Scott Pruitt said in a statement. โ€œObamaโ€™s EPA cut the Midterm Evaluation process short with politically charged expediency, made assumptions about the standards that didnโ€™t comport with reality, and set the standards tooย high.โ€

Many argue, however, that weakened standards will hurt the average driver, who will have to pay more for gasoline to fuel the less efficient vehicles. Energy Innovationโ€™s peer-reviewed modeling simulator, for instance, shows how a rollback on emissions standards would cause nearly $400 billion in increased consumer costs between now andย 2050.


Freezing fuel efficiency standards at 2021 levels would cost approximately $370 billion by 2050. Credit: Robbie Orvis/Energyย Innovation

Furthermore, weakening mileage and emissions standards will set up a fight with California, which has a unique authority under the Clean Air Act to set its own emissions standards for vehicles, and state authorities are signaling that they have no intention of chasing the federal government in a race to the bottom. Notably, over recent weeks, Pruittย has been publicly critical of Californiaโ€™s authority to set its own standards, leading many to speculate that the EPA might attempt to revoke Californiaโ€™s waiver under the Clean Airย Act.

โ€œCalifornia is not the arbiter of these issues,โ€ Pruitt told Bloomberg TV. The state, he said, โ€œshouldnโ€™t and canโ€™t dictate to the rest of the country what these levels are going toย be.โ€

On Monday, a so-called conservative coalition sent a letter to Pruitt and Secretary of Transportation Elaine Chao applauding the decision, which had yet to be formally announced. Organized by Tom Pyle of the Koch-funded Institute for Energy Research, and signed by Michael Needham of Heritage Action, Brent Gardner of Americans for Prosperity, Myron Ebell of the Competitive Enterprise Institute, and Grover Norquist of Americans for Tax Reform, the letter goes so far as to say that โ€œwe believe repealing the entire program is appropriate andย warranted.โ€

The Auto Alliance Used Climate Denial to Push itsย Agenda

Most automakers selling cars in the United States have been actively lobbying President Trump and the respective agencies to rewrite and weaken the rules. This is despite the fact that, in the wake of the financial crisis and $80 billion bailout of Detroit, the car companies helped design these regulations and publicly accepted the mileage and pollution standards.

Through the powerful Alliance for Automobile Manufacturers (or Auto Alliance) trade group, which counts Toyota, Ford, General Motors, Fiat Chrysler, BMW, Mercedes, and Volkswagen amongย its members, the automakers sent a letter to President Trump days after the presidential election, and then another near-identical one to Pruitt after he was confirmed to lead EPA.

In the year since, pressure from the group has increased, and the Alliance has resorted to a disinformation campaign founded in climate science denial and cherry-pickedย data.

In February, as NHTSA was reviewing the Obama standards, the Alliance sent a report to the agency that presented a number of studies and resources intended to undermine the current standards and present the case for rolling back the targets. The report was written by an industry-connected team from Air Improvement Resources, Inc, along with Joseph Dโ€™Aleo, a policy adviser to the Heartland Institute, a fountainhead of climateย denial.

Despite its name, Air Improvement Resources is a for-profit consultancy with a long history of combating environmental regulations. Their client tally includes a long list of organizations found in Desmogโ€™s Climate Disinformation Database, includingย the American Petroleum Institute, the American Coal Council, the U.S. Chamber of Commerce, and the American Enterprise Institute.

The report itself relies heavily on comments from the automakersย and on papers that were paid for by the industry or fossil fuel interests. Perhaps the most striking example is the citation of a study by Anthony Cox, Jr. that questions the health impacts of fine particulate air pollution (such as smog), a study that was directly funded by the American Petroleum Institute.

The Alliance’s report also promotes outright climate science denial, with an entire section dedicated to questioning climate models. Other sections cherry-pick lines from studies to undermine the scientific consensus linkingย the burning of fossil fuels with more extreme droughts and floods, hurricanes, ocean acidification, andย wildfires.

The Auto Alliance Wants You to Think It’s Serious About Selling Cleanerย Cars

Meanwhile, last week at the New York International Auto Show, the Auto Alliance, along with the Association of Global Automakers and more than a dozen automakers announced a new marketing campaign to โ€œto increase electric car use throughout theย Northeast.โ€

According to the campaign’s website: โ€œDrive Change. Drive Electric. represents a unique public-private partnership between auto manufacturers and Northeast states to advance consumer awareness, understanding, consideration, and adoption of electric cars, including battery electric, plug-in hybrid electric, and fuel cell electric vehicles. By showcasing to drivers and passengers the convenience, affordability, technology, sustainability, and power performance of electric vehicles, Drive Change. Drive Electric. aims to put more electric cars on the road than everย before.โ€

However, the effort is coming at precisely the same time that the Auto Alliance and its members has been actively lobbying for looser emissions standards, which would lower car companies’ incentives for selling more electricย vehicles.

As Fred Lambert writes on the popular electric car enthusiast siteย Electrek:

โ€œThey are launching this just as the EPA is about to release its decision over the fuel consumption standard that those same organizations have been pressuring them toย lower.

If it does get lower, they wouldnโ€™t have to mass produce electric vehicles for a few more years and continue to focus on smaller numbers of EVs [electric vehicles] in CARB [California Air Resources Board] states, like in theย Northeast.โ€

California May Save the Auto Industry Fromย Itself

Theย announcement opens the door for a new weakening of efficiency and pollution standards, but automakers will have to wait months before they know what targets they will have to achieve by 2022. Further complicating matters is Californiaโ€™s unique authority under the Clean Air Act to set its own air pollution standards. Publicly, California officials have offered firm resolve in sticking with the existing, stricterย standards.

โ€œWe are not going to go backward,โ€ California Attorney General Xavier Becerra told the Los Angeles Times.ย โ€œWe are not interested in a race to the bottom โ€ฆ We are prepared to take whatever action, legal or otherwise, we have to to protect our health and ourย economy.โ€

Twelve other states and the District of Columbia have adopted Californiaโ€™s standards, meaning that roughly 40 percent of the light-duty vehicles sold nationally will still have to comply with currentย standards.

Automakers do not want to have to produce two different types of vehicles within the American market, and have repeatedly argued on behalf of one nationalย standard.

California officials will have plenty of support from the other states, as well as from many business groups and even automobile parts manufacturers. In March, a group of 46 businessesย โ€” including major employers like Kellogg, Levi Strauss, Nike, and Unilever โ€” sent a letter to Pruitt warning against a rollback of emissionsย standards.

Meanwhile, vehicle parts manufacturers boast that the Obama standards have created jobs in the auto industry. In March, the Motor & Equipment Manufacturers Association, the Manufacturers of Emission Controls Association, and the Aluminum Association all announced they are joining forces as the Automotive Technology Leadership Group, with a goal of advocating for continuing current fuel economy standards and reducing emissions.

โ€œDo not slow down the pace on CAFE [Corporate Average Fuel Economy] standards,โ€ said James Verrier, president and CEO of Borg Warner, a major auto equipment manufacturer. โ€œWeโ€™ve come a long way as an industry and we need to keep going forward. Donโ€™t go backwards and donโ€™t slowย down.โ€

Meanwhile, in Europe and Chinaย โ€” the world’s other two largest auto markets โ€” carmakers are complying with ever-stricter standards, and anyย rollback of U.S. regulations would make American companies laggards globally. Chinese officials have even signaled a plan to end all sales of gasoline and diesel-powered vehicles. โ€œI donโ€™t really know if the auto industry wants what this administration might be doing,โ€ Harvard law professor Jody Freeman told the New York Times. โ€œIt might be like the dog that caught theย car.โ€

A lesson could be learned from the last time that the auto industry resisted fuel efficiency improvements. For nearly two decades, the fuel efficiency standards, known as CAFE,ย held mostly static around 25 miles per gallon. By 2008, when the financial crisis struck, Americanย demand for cars dropped considerably, and demand for gas-guzzling SUVs plummeted even faster. Combined with high gas prices, the 20-plus year run of flat fuel efficiency ended in a massive bailout of Detroit’s Big Three automakers as American car companies lost market share to more fuel-efficient German and Japaneseย cars.

The Auto Alliance’s own marketing claimsย that many electric cars are already cheaper to own than gas-guzzling alternatives. Meanwhile, a whopping 87 percent of American drivers want better fuel economy out of their cars, and 73 percent think the government should raise standards to getย it.

Instead, the Trump administration has announced its intention to weaken standards, relying on misinformation provided by the Auto Alliance and its members, which will make it more expensive for Americans to drive and makes the entire auto industry less competitiveย globally.

Main image: Rolling back fuel efficiency standardsย in the U.S. could cost drivers an additional $370 billionย by 2050.ย Credit: Oak Ridge National Labs, publicย domain

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Ben Jervey is a Senior Fellow for DeSmog and directs the KochvsClean.com project. He is a freelance writer, editor, and researcher, specializing in climate change and energy systems and policy. Ben is also a Research Fellow at the Institute for Energy and the Environment at Vermont Law School. He was the original Environment Editor for GOOD Magazine, and wrote a longstanding weekly column titled โ€œThe New Ideal: Building the clean energy economy of the 21st Century and avoiding the worst fates of climate change.โ€ He has also contributed regularly to National Geographic News, Grist, and OnEarth Magazine. He has published three booksโ€”on eco-friendly living in New York City, an Energy 101 primer, and, most recently, โ€œThe Electric Battery: Charging Forward to a Low Carbon Future.โ€ He graduated with a BA in Environmental Studies from Middlebury College, and earned a Masterโ€™s in Energy Regulation and Law at Vermont Law School. A bicycle enthusiast, Ben has ridden across the United States and through much ofย Europe.

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