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Clean Tech Presentation

The Evolution of CAFE Standards: Fuel Economy Regulation Enters Its Second Act

Laura Hall

on 10 March 2011

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Transcript of Clean Tech Presentation

Congress passes EPCA 1978
CAFE regulation begins 1985
CAFE increases cease 2002
CAFE legislation fails 2007
Congress passes EISA 2008-9
Big Three in trouble 1. The History of CAFE Regulation Every month that passes brings us closer to the day when we will be dependent on imported energy for 50 percent of our requirements. A new embargo under these conditions could have a devastating impact on jobs, industrial expansion, and inflation at home. Our economy cannot be left to the mercy of decisions over which we have no control.
– President Ford urging Congress to act to reduce
dependence on foreign oil, April 10, 1975 Ford Pinto Chevy Monte Carlo Chrysler Lebaron Honda Civic Nissan Skyline Toyota Truck 1973
Arab Oil Embargo The Evolution of CAFE Standards:
Fuel Economy Regulation Enters Its Second Act 1979-1980
Big Three in trouble President Reagan 2. Obama's National Fuel Efficiency Policy Congressman ponders bailout Secretary of Transportation
Neil Goldschimdt Sen. John McCain Sen. John Kerry Auto Execs testify before
Senate Committee Secretary of Transportation
Elizabeth Dole Oil prices up 4x!

Gas prices up from
36.1¢ to 52.4¢ per gal. Laura Hall, March 9, 2011 1990s
Resistance to
CAFE program peaks The Big Three rebound 2002-8
Climate change
litigation 2009
The Obama
Administration A. B. C. 3. Likelihood of Success Down the Road EPA Administrator
Stephen Johnson <-working together-> Regulatory Change Current Events EPA Administrator
Lisa Jackson "The Inhofe-Upton bill allows many Clean Air Act programs to continue, but takes away the agency’s authority to apply the landmark law to carbon dioxide. A deal negotiated with automakers to limit carbon dioxide emissions from cars and light trucks would be allowed to stand through 2016, but no further greenhouse gas emissions rules for vehicles would be permitted. State programs to try to address global warming and carbon emissions would be allowed to continue."
http://green.blogs.nytimes.com/2011/03/03/inhofe-and-upton-just-say-no-to-the-e-p-a/ Rep. Upton
Michigan Sen. Inhofe
Oklahoma accelerated EISA standards by ~4 years

implemented both footprint standards & fleet-wide standards

created greenhouse gas emission standards, to be enforced by the EPA

required collective agreement among California, EPA & NHTSA

granted California's waiver to the CAA; mostly a symbolic gesture THEN NOW Imports @ 35% Imports @ 57% High oil prices Even higher oil prices
... sustained Big Three dominate Big Three weaker Political sensitivity Growing demand Price sensitivity Energy independence Dual rationale Single rationale Alternatives available
Full transcript