New California Emissions Standards and Auto Makers

The California Air Resources Board (CARB) recently passed new regulations stemming from a law AB1493 signed by for California Gov. Gray Davis in 2002. The new regulations require automakers to cut cars' greenhouse gas emissions by 25 percent starting with the 2009 model year and up to 34 percent by 2016.

Other states that follow California's rules on automobile air pollution, such as New York, Massachusetts, Vermont, and Maine may have to abide by the new regulations as well. New Jersey, Connecticut and Rhode Island are in the process of adopting the California air quality standards as well.

What this means for the automakers is that their emissions standards would have to be set at the California state standards instead of the federal standards because of the large and infeasible cost they would occur from producing two separate types that conform to both standards.

The argument that is currently happening is between the cost that the automakers claim they would incur based on these new regulations and the cost CARB estimates automakers would have under the new regulations.

The other argument proposed by the automakers is that the new regulations on auto emissions are actually designed to increase fuel economy standards which can only be set by Congress under the federal Energy and Conservation Act of 1975 which prohibits states from adopting policies on fuel economy. The CARB states that their regulations are not designed to increase fuel economy standards, but to limit automobile emissions to decrease greenhouse gases.

So, does it really matter if the new emissions standards set by the CARB does increase the fuel economy in the automakers' fleets when it is actually designed to decrease automobile emissions which lead to greenhouse gases? And, what responsibility is it of the state legislature of California if other states decide to mimic their auto emissions standards?