The Alliance of Automobile Manufacturers (AAM) applauded EPA's decision to grant California's request to set its own standards for vehicle fuel economy and greenhouse gas (GHG) emissions. But AAM was also cautious, stating that it hoped "granting this waiver will not undermine the enormous efforts put forth to create the national program."

One major concern of automakers has been that granting the waiver will result in inconsistent standards from state to state, forcing companies to design and manufacture multiple fleets of compliant vehicles to ensure sales.

But EPA claims that the administration eliminated that possibility in May when President Obama kicked off a national policy to increase fuel economy and reduce GHGs. The policy would cover passenger cars, light-duty trucks, and medium-duty passenger vehicles built in model years 2012-2016; the policy would ultimately require an average fuel economy standard of 35.5 mpg in 2016.

"The good news is that California has publicly committed, in writing, to allow automakers who show compliance with the national program to also be deemed in compliance with California's state requirements," said EPA Administrator Lisa Jackson following the announcement that California's waiver request had been approved.

California is the only state permitted by the Clean Air Act (CAA) to set stricter-than-federal standards for vehicles, as long as it gets a waiver to do so from the federal government. The waiver request, which was denied by the Bush administration, was reconsidered very early by the Obama administration. Once California receives a CAA waiver from the federal government, other states may adopt California's standards. Fourteen states have pledged to follow California's example.

Jackson pointed out that EPA may grant or deny a California waiver request based only on three criteria specified in the CAA; none of these criteria address the effects of other states adopting California's standards.

Upon taking office, President Obama launched intensive discussions with states, auto manufacturers, and other stakeholders to resolve the waiver issue.

"The President has succeeded in bringing three regulatory bodies, 15 states, a dozen automakers, and many environmental groups to the table," said Dave McCurdy, AAM's president and CEO. "The national program has launched a new beginning, a new chapter and a new era of cooperation. Automakers remain committed to working with all parties to further this single national program administered by the federal government."

EPA's notice of its decision to grant California's waiver request is available here.

[Source: Environmental Manager's Compliance Advisor. Subscribe today!]