The Department of Transportation is warning that a Senate bid to block planned EPA greenhouse gas regulations would have “profoundly adverse effects” on the economy, the environment, and car companies.
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The letter looks at what would happen if Murkowski’s plan becomes law and DoT has to proceed alone with new mileage standards. One result is that California and several other states would press ahead with their own emissions rules, instead of deferring to the joint DoT-EPA standard as planned, DoT notes.
Via the EPW website, here is the agenda for the first hearing:
Full Committee hearing entitled, “Legislative Hearing on S. 1733, Clean Energy Jobs and American Power Act.”
Tuesday, October 27, 2009
09:30 AM EDT
EPW Hearing Room – 406 Dirksen
Witnesses
Opening Remarks
Panel 1
The Honorable John F. Kerry
United States Senator (D-MA)
Panel 2
The Honorable Steven Chu
Secretary
United States Department of Energy
The Honorable Ray LaHood
Secretary
United States Department of Transportation
The Honorable Ken Salazar
Secretary
United States Department of the Interior
The Honorable Lisa Jackson
Administrator
United States Environmental Protection Agency
The Honorable Jon Wellinghoff
Chairman
Federal Energy Regulatory Commission
DOT Secretary Ray LaHood and EPA Administrator Lisa P. Jackson Propose National Program to Improve Fuel Economy and Reduce Greenhouse Gases
New Interagency Program to Address Climate Change and Energy Security
WASHINGTON – U.S. Department of Transportation (DOT) Secretary Ray LaHood and U.S. Environmental Protection Agency (EPA) Administrator Lisa P. Jackson today jointly proposed a rule establishing an historic national program that would improve vehicle fuel economy and reduce greenhouse gases. Their proposal builds upon core principles President Obama announced with automakers, the United Auto Workers, leaders in the environmental community, governors and state officials in May, and would provide coordinated national vehicle fuel efficiency and emissions standards. The proposed program would also conserve billions of barrels of oil, save consumers money at the pump, increase fuel economy, and reduce millions of tons of greenhouse gas emissions.
“American drivers will keep more money in their pockets, put less pollution into the air, and help reduce a dependence on oil that sends billions of dollars out of our economy every year,” said EPA Administrator Lisa P. Jackson. “By bringing together a broad coalition of stakeholders — including an unprecedented partnership with American automakers — we have crafted a path forward that is win-win for our health, our environment, and our economy. Through that partnership, we’ve taken the historic step of proposing the nation’s first ever greenhouse gas emissions standards for vehicles, and moved substantially closer to an efficient, clean energy future.”
“The increases in fuel economy and the reductions in greenhouse gases we are proposing today would bring about a new era in automotive history,” Transportation Secretary Ray LaHood said. “These proposed standards would help consumers save money at the gas pump, help the environment, and decrease our dependence on oil – all while ensuring that consumers still have a full range of vehicle choices.”
Under the proposed program, which covers model years 2012 through 2016, automobile manufacturers would be able to build a single, light-duty national fleet that satisfies all federal requirements as well as the standards of California and other states. The proposed program includes miles per gallon requirements under NHTSA’s Corporate Average Fuel Economy Standards (CAFE) program and the first-ever national emissions standards under EPA’s greenhouse gas program. The collaboration of federal agencies for this proposal also allows for clearer rules for all automakers, instead of three standards (DOT, EPA, and a state standard).
Specifically, the program would:
• Increase fuel economy by approximately five percent every year
• Reduce greenhouse gas emissions by nearly 950 million metric tons
• Save the average car buyer more than $3000 in fuel costs
• Conserve 1.8 billion barrels of oil
Increase Fuel Economy and Reduce Carbon Dioxide Emissions:
The proposed national program would require model year 2016 vehicles to meet an estimated combined average emission level of 250 grams of carbon dioxide per mile. Under the proposed program, the overall light-duty vehicle fleet would reach 35.5 miles per gallon (mpg) in model year 2016, if all reductions were made through fuel economy improvements. If this occurs, Congress’ fuel economy goal of 35.0 mpg by 2020 will be met four years ahead of schedule. This would surpass the CAFE law passed by Congress in 2007 which required an average fuel economy of 35 mpg in 2020.
Reduce Greenhouse Gases:
Climate change poses a significant long-term threat to America’s environment. The vehicles subject to the proposed rules announced today are responsible for almost 60 percent of all U.S. transportation-related greenhouse gas emissions. These will be the nation’s first ever national greenhouse gas standards. The proposed standards would require model year 2016 vehicles to meet an estimated combined average emission level of 250 grams of carbon dioxide per mile under EPA’s greenhouse gas program. The combined EPA and NHTSA standards would reduce carbon dioxide emissions from the light-duty vehicle fleet by about 21 percent in 2030 over the level that would occur in the absence of any new greenhouse gas or fuel economy standards. The greenhouse gas emission reductions this program would bring about are equivalent to the emissions of 42 million cars.
Save Consumers Money:
NHTSA and EPA estimate that U.S. consumers who purchase their vehicle outright would save enough in lower fuel costs over the first three years to offset the increases in vehicle costs. Consumers would save more than $3,000 due to fuel savings over the lifetime of a model year 2016 vehicle.
Conserve Oil and Increase Energy Security:
The light-duty vehicles subject to this proposed National Program account for about 40 percent of all U.S. oil consumption. The program will provide important energy security benefits by conserving 1.8 billion barrels of oil, which is twice the amount of oil (crude oil and products) imported in 2008 from the Persian Gulf countries, according to the Department of Energy’s Energy Information Administration Office. These standards also provide important energy security benefits as light-duty vehicles account for about 60 percent of transportation oil use.
Within the Auto Industry’s Reach:
EPA and NHTSA have worked closely to develop this coordinated joint proposal and have met with many stakeholders including automakers to insure the standards proposed today are both aggressive and achievable given the current financial state of the auto industry.
NHTSA and EPA expect automobile manufacturers would meet these proposed standards by improving engine efficiency, transmissions and tires, as well as increasing the use of start-stop technology and improvements in air conditioning systems. EPA and NHTSA also anticipate that these standards would promote the more widespread use of advanced fuel-saving technologies like hybrid vehicles and clean diesel engines.
The CARS program came to a close Tuesday night with nearly 700,000 clunkers taken off the roads, replaced by far more fuel efficient vehicles. Rebate applications worth $2.877 billion were submitted by the 8 p.m. deadline, under the $3 billion provided by Congress to run the program.
Cars made in America topped the most-purchased list, from the Ford Focus to the Toyota Corolla to the Honda Civic.
“American consumers and workers were the clear winners thanks to the cash for clunkers program,” said U.S. Transportation Secretary Ray LaHood. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.”
“This is one of the best economic news stories we’ve seen and I’m proud we were able to give consumers a helping hand,” Secretary LaHood said.
According to a preliminary analysis by the White House Council of Economic Advisers, the CARS program will:
Boost economic growth in the third quarter of 2009 by 0.3-0.4 percentage points at an annual rate thanks to increased auto sales in July and August.
Will sustain the increase in GDP in the fourth quarter because of increased auto production to replace depleted inventories.
Will create or save 42,000 jobs in the second half of 2009. Those jobs are expected to remain well after the program’s close.
Ford and General Motors recently announced production increases for both the third and fourth quarters as a result of the demand generated by the program. Honda also said it will be increasing production at its U.S. plants in East Liberty and Marysville, Ohio and in Lincoln, Alabama.
In addition, the program provides good news for the environment. That’s because 84 percent of consumers traded in trucks and 59 percent purchased passenger cars. The average fuel economy of the vehicles traded in was 15.8 miles per gallon and the average fuel economy of vehicles purchased is 24.9 mpg. – a 58 percent improvement.
“This is a win for the economy, a win for the environment and a win for American consumers,” Secretary LaHood said.
With the end of transactions under the program, the Department of Transportation is augmenting a team that already includes more than 2,000 people processing dealer applications for rebates.
James J. Markowsky, Nominee for Assistant Secretary for Fossil Energy, Department of Energy
James J. Markowsky is currently a consultant in the energy and electric power generation area, a member of the National Research Council’s Committee on America’s Energy Future and a Member and the Chair of the National Academy of Engineering’s Section 6 – Electric Power/Energy Systems Committee. Previously, Markowsky was the President of Research and Development Solution, LLC, from 2004 – 2005 where he was involved in providing technical support services, including R&D technology planning and analysis; R&D project planning and analysis; and R&D operations and process engineering, design and analysis to DOE’s National Energy Technology Laboratories. Before that he was executive vice president of power generation, at American Electric Power Service Corporation(AEP), where his responsibilities included providing overall administrative, operational, and technical direction for the AEP System’s 21,000MWe coal and 800 MWe hydro power generating facilities. Markowsky’s career with AEP extended from 1971 – 2000, and his other positions included; executive vice president of engineering and construction, senior vice president and chief engineer, vice president – mechanical engineering, assistant vice president – mechanical engineering, AEP Sloan Fellow, and section manager.
Markowsky received several awards including the Washington Coal Club’s Lifetime Achievement Award in 2002 and has 26 publications in the area of power generation and fossil energy. He earned degrees from: Massachusetts Institute of Technology – MS in Industrial Management -1981; Cornell University – Ph.D. in 1971 and MS in 1970, both in Mechanical Engineering; and Pratt Institute – Bachelor of Mechanical Engineering -1967.
Polly Trottenberg, Nominee for Assistant Secretary for Transportation Policy, Department of Transportation
Polly Trottenberg serves as Executive Director of Building America’s Future, a national bipartisan coalition that supports U.S. infrastructure investment and a more accountable, sustainable and performance-driven national transportation policy. Building America’s Future is chaired by Governor Edward G. Rendell, Mayor Michael R. Bloomberg and Governor Arnold Schwarzenegger and has a membership of elected officials from across the U.S. Prior to joining Building America’s Future, Trottenberg served in the U.S. Senate for 12 years, most recently as Deputy Chief of Staff and Legislative Director for Senator Barbara Boxer, and worked extensively on transportation policy.
She also served as Legislative Director for Senator Charles Schumer and as Legislative Assistant for Transportation, Public Works and Environment for the late Senator Daniel Patrick Moynihan. Trottenberg previously worked at the Port Authority of New York and New Jersey and the Massachusetts Port Authority on aviation and transportation finance issues, and on the Joint Commerce and Labor Committee of the Massachusetts State Senate. She received her Master’s in Public Policy from Harvard University, Kennedy School of Government and her BA in American History from Columbia University, Barnard College.
