#AAM

A slew of automakers are scheduled for a Thursday meeting with the heads of the Environmental Protection Agency and U.S. Department of Transportation to go over existing Obama-era efficiency rules. Transportation Secretary Elaine Chao and EPA Administrator Scott Pruitt will both be on hand to discuss — and likely reassure — manufacturers on the future of the guidelines.

In March, President Donald Trump ordered an extensive review of U.S. light vehicle fuel-efficiency standards for the 2022-2025 time frame, despite the Obama administration locking them in well ahead of the midterm review’s April 2018 deadline. The decision was rushed to maintain the administration’s climate change policy and avoid any tampering from incoming Trump appointees. While there remains much to be done before the standing emission limits can be rolled back, wheels are now in motion.

The Alliance of Automobile Manufacturers is taking to the internet ahead of a forthcoming increase in 2017-2025 CAFE standards, with a website called “ Consumers and Fuel Economy.” There you can find, among other things, this graph detailing the relationship between hybrid sales and fuel prices over the last three… summers? Did the fall and winter data not support the AAM’s goals? If so, and this graph has been constructed for maximum impact, it’s hardly a wildly convincing slice of data… or is it?

How things change in a few years! Just a few short orbits of the sun ago, automakers like GM were some of the biggest boosters of ethanol subsidies. Now, the Detroit News reports

The Alliance of Automobile Manufacturers – the trade association representing General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp. and eight others – opposes a bill sponsored by Sen. Tom Harkin, D-Iowa, that would require 90 percent of all vehicles to run on E85 – a blend of 85 percent ethanol – by the 2016 model year.

Shane Karr, vice president for government affairs, said the mandate “would cost consumers more than $2 billion per year” for flex fuel vehicles if automakers passed on the full cost “even though consumers will have little or no access to alternative fuels. Therefore, such a mandate is essentially a tax with little consumer benefit.”

In the face of this new opposition, the Renewable Fuels Association has even taken to employing the rhetoric of market economics to justify market-manipulating ethanol subsidies. And it doesn’t seem to be convincing anyone. If anything, Harkin’s bill may just hasten the death of existing subsidies, which are under pressure as both Democrats and Republicans seek to trim the federal budget.