New Rules Project - Democratic Energy - Automobile CO2 Emissions Rule

Automobile CO2 Emissions Rule - California

UPDATE MAY 2007:

Eight other states (two more states are considering them) have adopted Califonia's CO2 regulations. Automakers responded by filing a half-dozen lawsuits in several of those states. The auto industry argues that California exceeded its authority by, in effect, setting its own fuel-economy standards. By law, no state is permitted to set fuel-economy standards more strict than those set by the federal Department of Transportation.

In April 2007, the Supreme Court ruled favorably for CO2 regulation in a related global warming case (Mass. vs. EPA) that has opened the door to the suits against California's rule to be dropped. For more on the Supreme Court decision see this Environment Defense site.

Since the court's ruling, EPA has taken no action to allow California's Clean Cars Law to go forward. In response to EPA's foot-dragging on regulating global warming pollution, governor Arnold Schwarzenegger has threatened to sue the EPA.

UPDATE 2004:

On September 24, 2004 the California Air Resources Board announced that they had approved a landmark regulation that requires automakers to begin selling vehicles with reduced greenhouse gas emissions by model year 2009.

The historic regulation sets limits on the amount of greenhouse gas emissions that can be released from new passenger cars, SUVs and pickup trucks sold in California starting in model year 2009. The new regulation is based on a state of the art assessment of the various technologies and fuels that can reduce motor vehicle global warming pollutants.

According to ARB staff, the average reduction of greenhouse gases from new California cars and light trucks will be about 22 percent in 2012 and about 30 percent in 2016, compared to today's vehicles. Costs for the added technology needed to meet the rule are expected to average about $325 per vehicle in 2012 and about $1050 per vehicle to comply in 2016. The ARB staff analysis concludes that the new rule will result in savings for vehicle buyers by lowering operating expenses that will more than offset the added costs of the new vehicles and provide an overall cost savings to consumers.

The adoption of this rule makes California the nation's only state that has regulated motor vehicles for their contributions to global climate change. At least seven other states including New York, Massachusetts, New Jersey, Vermont, Connecticut, Rhode Island and Maine, as well as the nation of Canada, are expected to consider adopting the regulation for their use. If all of those states and Canada adopt the rule, the number of cars required to meet the rule will triple.

Background Documents from ARB - September 2004

Staff Report: Initial Statement of Reasons (ISOR)
Appendix 1- Proposed Regulation Order
Appendix 2 - California and Exhaust Emission Standards and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium Duty-Vehicles

Existing California law requires the California Climate Action Registry to perform various functions relating to emissions reductions, including maintaining a record of certified greenhouse gas emission baselines and emission reduction results.

Building on these existing requirements, this bill (AB1493) requires the registry, in consultation with the State Air Resources Board, to adopt procedures and protocols for the reporting and certification of reductions in greenhouse gas emissions from mobile sources - automobiles and trucks.

AB 1493, does not state how emissions should be reduced in automobiles and trucks. It directs the California Air Resources Board to come up with regulations by 2005 that "achieve the maximum feasible reduction of greenhouse gases". The new standards would apply to vehicles from model year 2009 onward. The bill prohibits any regulations from taking effect prior to January 1, 2006, in order to give the Legislature time for review.

The Governor signed the bill on July 22, 2002, putting California at the forefront of a worldwide effort to reduce greenhouse gases. "This is the first law in America to substantively address the greatest environmental challenge of the 21st century," Gov. Davis said. "In time, every state - and hopefully every country - will act to protect future generations from the threat of global warming. For California, that time is now."

While the language in the legislation is focused on reducing emissions, the end result if enacted into law is an increase in fuel efficiency of automobiles sold into the California market. Efforts to increase fuel economy standards at the Federal level were blocked by the Bush Administration. The California legislation regulating tail-pipe emissions was an innovative way to enact fuel economy standards at the State level.

California is the only state empowered under federal law to pass stronger air pollution standards than those set by the federal government. Other states can then choose California's standards, but cannot be the first to surpass those set by the federal government. Thus, passage of a California law leading to regulation of greenhouse gas emissions from cars eventually could spark changes in the design of automobiles sold across the country.

Sec 1 of the bill (see below) is quite telling on how the California Legislature views the issue of climate change.

AB 1493
Sec 1:
The Legislature hereby finds and declares all of the following:

(a) Global warming is a matter of increasing concern for public health and the environment in the state.

(b) California is the fifth largest economy in the world.

(d) Global warming would impose on California, in particular, compelling and extraordinary impacts including:

(1) Potential reductions in the state's water supply due to changes in the snowpack levels in the Sierra Nevada Mountains and the timing of spring runoff.

(2) Adverse health impacts from increases in air pollution that would be caused by higher temperatures.

(3) Adverse impacts upon agriculture and food production caused by projected changes in the amount and consistency of water supplies and significant increases in pestilence outbreaks.

(4) Projected doubling of catastrophic wildfires due to faster and more intense burning associated with drying vegetation.

(5) Potential damage to the state's extensive coastline and ocean ecosystems due to the increase in storms and significant rise in sea level.

(6) Significant impacts to consumers, businesses, and the economy of the state due to increased costs of food and water, energy, insurance, and additional environmental losses and demands upon the public health infrastructure.

(e) Passenger vehicles and light-duty trucks are responsible for approximately 40 percent of the total greenhouse gas pollution in the state.

(f) California has a long history of being the first in the nation to take action to protect public health and the environment, and the federal government has permitted the state to take those actions.

(g) Technological solutions to reduce greenhouse gas emissions will stimulate the California economy and provide enhanced job opportunities. This will continue the California automobile worker tradition of building cars that use cutting edge technology.

(h) It is the intent of the Legislature to require the State Air Resources Board to adopt regulations that ensure reductions in emissions of greenhouse gases in furtherance of Division 26 (commencing with Section 39000) of the Health and Safety Code. It is the further intent of the Legislature that the greenhouse gas regulations take effect in accordance with any limitations that may be imposed pursuant to the federal Clean Air Act (42 U.S.C. Section 7401 et seq., as amended by the federal Clean Air Act Amendments of 1990 (Pub. L. 101-549)) and the waiver provisions of the federal act.