Obama Orders EPA to Reconsider Denial of California Application, DOT to Raise Fuel Economy Standards

President Obama took two major steps to force American auto manufacturers to produce more energy-efficient vehicles today, issuing one memorandum requiring the Environmental Protection Agency to reconsider its denial of a request for more state flexibility to set tougher emission standards and another directing the Department of Transportation to establish higher fuel economy standards.

The order is expected to result in EPA granting California's application for a waiver of preemption under the Clean Air Act, which is necessary for the state to enforce a 2002 law that would force auto makers to lower tailpipe emissions in the state by 30 percent by 2016.

"It will be the policy of my administration to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs," Obama said during remarks in the east room of the White House today. "

The president also promised to "commit ourselves to the steady, focused, pragmatic pursuit" of energy independence.

At least 13 other states have indicated they will impose emission standards similar to California's if EPA grants the preemption waiver.

The order will require DOT to finalize rules requiring automakers to raise the average fuel economy of the nation's fleet to 35 mpg by 2020.

It will also force DOT to impose interim rules that will raise the minimum fuel economy standard by the 2011 model year.

The regulations are required by an energy law enacted in 2007.

Report: Obama to Order EPA to Reconsider Denial of California Preemption Exemption

President Obama will order the Environmental Protection Agency to reconsider the Bush administration's decision to deny California permission to impose tough new limits on the emissions of greenhouse gases by motor vehicles, according to a report posted this evening on the New York Times website.

The door will be open for at least 13 additional states to begin applying new emission limits similar to California's if the Golden State's application for an exemption from the preemption of tougher state-level air quality rules by the federal Clean Air Act is granted upon that reconsideration.

The California state legislature enacted a law in 2002 that requires emissions of greenhouse gases from tailpipes to be reduced by 30 percent by 2016.

Auto manufacturers sued to block implementation of the law in 2007. The lawsuit was dismissed by a federal district court later that year.

But the Bush administration's EPA announced in December 2007 that the federal government would not grant California the exemption.

EPA's refusal of the exemption, which according to some reports was issued by administrator Stephen L. Johnson under White House pressure despite recommendations from his staff that it be accepted, provoked a lawsuit by the state of California.

Obama had promised in his campaign to re-visit the Bush administration's decision to prevent California from imposing stricter air quality standards than those put in place by EPA.

California Gov. Arnold Schwartzenegger formally requested that the Obama adminstration reconsider the denial of its exemption application Jan. 21.

The NYT report also said that Obama will order the Department of Transportation to issue interim regulations requiring the auto industry to increase fuel efficiency standards.

Those rules, which are required under the Energy Independence and Security Act of 2007 (EISA), Pub. L. 110-140, 121 Stat. 1492, were drafted but not finalized by the Bush administration.

EISA requires auto makers to raise average fuel economy in all of their models, including light trucks, to 35 mpg by 2020.

EPA Nominee Jackson Says She'll Re-Visit Bush Administration Decision on California Exemption

EPA Administrator-designee Lisa Jackson told senators Wednesday that she will immediately re-examine the Bush administration's decision not to grant California the Clean Air Act exemption needed for the state to impose tough laws limiting greenhouse gas emissions.

President-elect Barack Obama has previously signaled his disagreement with the decision by current EPA administrator Stephen Johnson.

"My commitment is that I will immediately review that," Jackson, New Jersey's top environmental official, told Sen. Barbara Boxer, D-Calif., who chairs the Senate Environment and Public Works Committee. "I will look to science and the law, and rely on the expert advice of the staff."

Johnson formally denied California the waiver of preemption required by the Clean Air Act for tougher state air-quality laws to go into effect in March 2008.

The U.S. Supreme Court, in the Massachusetts v. EPA decision issued in April 2007, had ruled that EPA has the authority to regulate greenhouse gas emissions under the Clean Air Act. The Bush administration has refused to exercise that authority.

At least 18 other states are poised to impose tough auto emissions rules if California is granted the Clean Air Act preemption waiver by the Obama administration. More than half the motor vehicles in the nation are registered in those states.

The California regulations, which were approved in 2002, would require all new cars and trucks to reduce their air pollutant emissions by at least 30 percent by the 2016model year.