Obama Fuel Rules May Tilt Field

SEE ALSO: U.S. Energy Policy Needs Bold; President Obama Gives Us Same Old

Washington DC September 9, 2009; The AIADA newsletter reported that the Obama administration's long-awaited proposed regulation setting fuel efficiency standards at 35.5 miles per gallon by the 2016 model year will be rolled out as early as this week.

The Detroit News reports that the regulation is expected to mirror a California provision that gives less-stringent tailpipe emissions requirements to automakers with annual U.S. sales of no more than 400,000 vehicles.

In May, President Barack Obama announced the agreement with major automakers and the state of California to harmonize state emissions limits with federal fuel economy requirements and set one national standard. Based on 2008 sales, the 400,000-vehicle exemption would likely cover Germany's Daimler, BMW, and Volkswagen, as well as Japan's Mazda and Mitsubishi, in addition to other international brands such as Kia, Suzuki, and Subaru.

The greatest advantage will go to makers of luxury vehicles, which are typically less fuel-efficient and built in lower volumes. NHTSA and the EPA must allow for 90 days of public comment and finalize new rules by March 31, to allow time for automakers to meet the regulations, which would take effect in stages beginning with the 2012 model year.

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