Statement of John Bozzella, Association of Global Automakers' President and CEO, before the House Committee on Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade and Subcommittee on Energy and Power Hearing on the Midterm Review and Update on the CAFE and GHG Emissions Standards for Motor Vehicles held on September 22, 2016.
- Global Automakers’ members are manufacturing cars and trucks that are more fuel efficient and cleaner than ever before, and improvements continue. Automakers have introduced numerous improvements in conventional vehicles, as well as remarkable advancements in alternatives to traditional gasoline vehicles, such as plug-in hybrid electric, battery electric, and hydrogen fuel cell electric vehicles.
- In 2012, the Environmental Protection Agency (EPA), the National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board (CARB) established standards for light duty fuel economy and greenhouse gas (GHG) emissions through 2025, under “One National Program” (ONP). The ONP includes a “Midterm Evaluation” to assess the assumptions made in 2012 and reexamine the path towards 2025.
- The Midterm Evaluation is critical to the overall goals of a strong, unified national program. Federal and state fuel economy and GHG emissions standards must be aligned to minimize differences and costs while maximizing environmental and energy benefits.
- The first step in the Midterm Evaluation process was the agencies’ release of the draft Technical Assessment Report (TAR) in July. According to the TAR, additional technologies beyond what is on the road today will be needed to meet the standards through 2025. Our initial analysis of the TAR shows that the agencies overestimated the efficiencies of many technologies and that as a result, more technologies will be needed than those included in the TAR. This will increase prices beyond earlier estimates and may result in customers having to make trade-offs between fuel efficiency and other options.
- As the EPA, NHTSA, and CARB continue through the Midterm Evaluation process and into the future, there are three crucially important issues that should be at the forefront: (1) ensuring that our customers’ needs and preferences are accounted for; (2) reducing inefficiencies and inconsistencies in the system that create drag, discourage innovation, and waste resources; and (3) identifying how we can work together to achieve the nation’s climate and energy goals, both through 2025 and beyond.