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Summary:
California is seeking, under the Clean Air Act, authority to establish greenhouse gas (GHG) emissions standards for passenger vehicles. The standards would require a 30% reduction in per-mile GHG from 2002 levels by 2016. To implement the standards, the state must secure a waiver from the Environmental Protection Agency (EPA). In December 2007, the EPA Administrator announced that the agency would deny California's waiver request, in part, because he argues new federal fuel economy standards established in the 2007 energy bill (P.L. 110-140) will be more stringent than the California program. California is challenging the agency's denial and its rationale. This report discusses the federal Corporate Average Fuel Economy (CAFE) standards (including tighter standards enacted under P.L. 110-140) and compares them with the GHG standards under California's law. It also identifies some factors that would have a bearing on the relative stringency of CAFE and the California program. Background. In 2002, the state of California enacted AB1493, requiring greenhouse gas (GHG) emissions reductions for new passenger vehicles starting in model year (MY) 2009. In 2004, the California Air Resources Board (CARB) finalized regulations requiring annual reductions in average GHG emissions for new vehicles between MY2009 and MY2016. Ultimately, this law requires a 30% reduction in average per-mile emissions from MY2002 levels by MY2016. As of January 2008, 16 other states have adopted or announced their intention to adopt California's standards.1 Passenger vehicles are a key source for GHG emissions from mobile sources in the United States. Transportation accounts for roughly one third of all U.S. carbon dioxide (CO2) emissions. Passenger vehicles alone represent roughly 60% of transportation emissions, or roughly 20% of total U.S. CO2 emissions. Because passenger vehicles play
