Proposed Legislation Would Make It Easier for Automakers to Meet Efficiency Requirements

Matt Posky
by Matt Posky

A bipartisan pair of congressional representatives from Michigan are proposing a new bill, the Fuel Economy Harmonization Act, that would aid automakers in complying with federal fuel efficiency requirements. Introduced on Wednesday, the bill would extend the life of fuel economy credits that are set to expire in five years and raise the ceiling on transferrable credits between car and truck fleets. Under the proposal, manufacturers could also be given additional credits for lowering fleet-wide emissions under new metrics.

Penning the bill, congresspersons Fred Upton (Republican) and Debbie Dingell (Democrat) said they believed the automotive industry would benefit from having a single set of fuel rules. The bill suggests rolling the NHTSA’s Corporate Average Fuel Economy (CAFE) and the EPA’s light-duty vehicle Greenhouse Gas Emissions mandates into one cohesive program.

While economy mandates have been growing, nationwide fuel consumption has still gone up. Likewise, the average mpg of cars sold in the United States hasn’t changed much over the last three years. With pump prices remaining low, consumers have flocked to less-efficient models like crossovers and SUVs.

According to Reuters, the Alliance of Automobile Manufacturers lauded the bill for “recognizing the consumer benefits that can come from better alignment of government programs.”

Not everyone is thrilled with the proposal, however. The Union of Concerned Scientists suggested the proposal, and a similar bill introduced by Republican Senator Roy Blunt, would allow manufacturers to make vehicles that are on average 3 miles a gallon less efficient by 2021. The union has also been critical of the Trump administration’s current review of efficiency standards. It believes that, once the assessment period ends, the president will press for a rollback — even though there has already been one.

The Obama’s administration finalized fuel standards in 2012 to double the average fuel economy of manufacturer fleets to 54.5 miles per gallon by 2025. However, the EPA later revised that target to 51.4 mpg due to rising truck sales.

Metrics aside, the new harmonization bill would address conflicts between the NHTSA and EPA’s individual programs. Established under the Obama administration, the Greenhouse Gas Emissions program was intended to be managed in tandem with CAFE. But the EPA currently has more punitive power than the Department of Transportation — giving its rules the higher priority.

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Slavuta Slavuta on Oct 14, 2017

    "Union of Concerned Scientists" - surely a phony "union" containing a few house-moms with online university degrees, who read an article or two.

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    • Slavuta Slavuta on Oct 18, 2017

      @HotPotato "The scariest goddamned thing in America today is..." marching socialism. These "scientists" already got caught on making up numbers.

  • DenverMike DenverMike on Oct 16, 2017

    To all the snivelers, whiners and the idiots suggesting raising the fuel tax, suck on it, this is America. The majority rules here. Yes with all the consequences related. Think of the 2nd Amendment. Freedom of Speech and various other. Except there's specific limits, balances to all these rights. But if you want to commute to your office desk job in a Peterbilt, and have the "deep pockets" necessary, nothing is preventing you. Most every new "car" sold today is a "truck", cute CUV to the mighty F-450 pickup. Yes partly "the consequences" of CAFE, "blah-blah-blah". Although if you want absolutely nothing to do with guns and hate "trucks" and truck owners altogether, please do us all a HUGE favor and invoke your right to remain silent. And again, suck on it.

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    • DenverMike DenverMike on Oct 16, 2017

      @Lorenzo Yes I'm OK with my taxes at the pump staying the same. If you don't, chances are you're calling from Europe or moving there soon. If so, enjoy. Paying more, doesn't guarantee we'll get more, just more crap on where the money all go diverted to instead. Urban sprawl and lack of meaningful "public transportation" was sponsored by the *promise* of cheap fuel, early in the 20th century. Yet anyone can own a tiny 1.2 liter car or EV if they wish. I'm squarely in the BAFO Camp when it comes to "choices", or some would say "freedoms". If you want to live in a McMansion, the biggest one in your subdivision, just you, your wife and 3 dogs, go for it, I won't judge. OK just a little.

  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
  • Kwik_Shift_Pro4X Off-road fluff on vehicles that should not be off road needs to die.
  • Kwik_Shift_Pro4X Saw this posted on social media; “Just bought a 2023 Tundra with the 14" screen. Let my son borrow it for the afternoon, he connected his phone to listen to his iTunes.The next day my insurance company raised my rates and added my son to my policy. The email said that a private company showed that my son drove the vehicle. He already had his own vehicle that he was insuring.My insurance company demanded he give all his insurance info and some private info for proof. He declined for privacy reasons and my insurance cancelled my policy.These new vehicles with their tech are on condition that we give up our privacy to enter their world. It's not worth it people.”
  • TheEndlessEnigma Poor planning here, dropping a Vinfast dealer in Pensacola FL is just not going to work. I love Pensacola and that part of the Gulf Coast, but that area is by no means an EV adoption demographic.
  • Keith Most of the stanced VAGS with roof racks are nuisance drivers in my area. Very likely this one's been driven hard. And that silly roof rack is extra $'s, likely at full retail lol. Reminds me of the guys back in the late 20th century would put in their ads that the installed aftermarket stereo would be a negotiated extra. Were they going to go find and reinstall that old Delco if you didn't want the Kraco/Jenson set up they hacked in?
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