Texans might drive cars designed for California attitudes if federal regulators agree to permit state-by-state auto emissions standards, a prospect that emerged Monday in President Barack Obama’s first major environmental policy action.

Obama ordered the Environmental Protection Agency to review the Bush administration’s refusal to allow California and 13 other states to set the nation’s toughest vehicle emissions standards.

During a ceremony in the White House East Room, Obama signed a directive requiring the agency immediately to review that December 2007 decision denying California permission to limit carbon dioxide emissions from cars and trucks.

“The federal government must work with, not against, states to reduce greenhouse gas emissions,” Obama said.

State Sen. Rodney Ellis, D-Houston, who pushed unsuccessfully for tougher car emissions standards in the 2007 legislative session, says his measure may have a better chance this session now that one key obstacle — federal opposition — is likely to disappear.

“It’s an uphill battle to get the votes in the House and in the Senate,” Ellis acknowledged. “But on my side in the Senate, members who in the past were very reluctant to consider environmental legislation have gotten much more educated, as I’ve seen in private conversations.”

Ellis’ legislation would adopt all of California’s proposed emissions standards, as the 13 other states already have and several more are considering.

Rep. Mark Strama, D-Austin, has filed an identical bill in the House.
California got early start

California has been allowed to impose tougher auto emissions standards for many years because the state started regulating emissions before federal standards were set.

Updates to the standards required waivers from the EPA, which granted them regularly until 2007.

That year the agency blocked an update, as the Bush administration took the position that carbon dioxide and other greenhouse gases would best be controlled at the federal level.

The new EPA administrator, Lisa Jackson, will have to go through a formal review process before making any decision, but Obama made clear Monday he expects the state’s regulations will be approved.

California’s rules would require automakers to reduce greenhouse gases from vehicles 18 percent by 2020 and 27 percent by 2030.

To do that they would have to raise fuel economy to a fleetwide average of 36 miles per gallon even earlier, by 2016.

Congress passed vehicle emissions standards in 2007 that would affect all cars sold in the U.S., but California would raise the standards sooner.
Industry groups oppose

Adopting the California standard in Texas would cost new-car buyers about $7 more per month if they financed a car over five years, Ellis said, but they would save up to $18 per month in fuel costs based on $1.74 per gallon of gas.

Many industry groups expressed opposition to the administration’s move.

The American Petroleum Institute said it “supports President Obama’s desire to fortify the nation’s energy security with a comprehensive energy policy” and said that since 2000 the oil and gas industry has invested $42 billion in “zero- and low-carbon” research and development. But the action contemplated in Monday’s announcement isn’t the best approach, the group said.

“Creating a patchwork regulatory structure across multiple states would most likely impose higher costs on consumers, slow economic growth and kill U.S. jobs,” the trading group said in a statement.

And carmakers have complained that developing vehicles that comply would cost billions of dollars.

But if the EPA agrees to California’s standards, Texas likely will be affected regardless of whether the Legislature approves Ellis’ measure. The 14 states that have adopted the tougher emissions standards represent more than half the nation’s population, so the practical effect of EPA approval of California’s rules would be to force automakers to raise fuel efficiency standards across their fleet.

A boon to refineries?

That means carmakers likely would spread out the overall higher costs throughout all their vehicles, even those sold in states that didn’t sign on.

“We’ll be paying the bills without getting the benefits,” said Tom “Smitty” Smith, director of the watchdog group Public Citizen, Texas.

“Why should we be stuck with the oldest, dirtiest technology in our vehicles?”

Adopting the auto emission rules actually might be a boon to the Houston area’s many refineries and chemical plants as the region works to meet current and future federal air quality standards.

“Anything we can do to reduce the emissions from mobile sources in Texas would take a big burden off the reductions stationary sources would have to make,” Strama said during a news conference in Austin on Monday.