Sen. James Inhofe

Post image for Gina McCarthy’s Responses to Sen. Vitter’s Questions Part I: Bait-and-Fuel-Switch*

Gina McCarthy — President Obama’s pick to succeed Lisa Jackson as EPA Administrator — is often described as a “straight shooter” and “honest broker.” As my colleague Anthony Ward and I explain in Forbes, McCarthy has a history of misleading Congress about the EPA’s greenhouse gas regulatory agenda.

Specifically, McCarthy and the Air Office over which she presides gave Congress and the electric power sector false assurances that the EPA’s greenhouse gas regulations would not require utilities planning to build new coal-fired power plants to “fuel switch” to natural gas. McCarthy also denied under oath that greenhouse gas motor vehicle standards are “related to” fuel economy standards, even though anyone with her expertise must know that the former implicitly and substantially regulate fuel economy.

McCarthy and the Air Office’s misleading statements about fuel switching discredited critics who claimed the EPA was waging a war on coal and would, if left to its own devices, ban new coal generation. The fiction that greenhouse gas emission standards are unrelated to fuel economy standards gave the EPA legal cover to gin up a regulatory nightmare for auto makers — the prospect of a market-balkanizing, state-by-state, fuel-economy “patchwork” — just so the White House, in hush-hush negotiations, could demand auto industry support for the administration’s motor vehicle mandates as the price for averting the dreaded patchwork. This is a complicated tale, which I will discuss in Part 2 of this series.

The bottom line is that if the EPA had not dissembled on fuel switching and not obfuscated on fuel economy, more Senators might have voted for legislative measures, sponsored by Sen. Lisa Murkowski (R-Alaska) in 2010 and Sen. James Inhofe (R-Okla.) in 2011, to rein in the agency. In addition to their well-publicized transparency concerns about the EPA under the leadership of Lisa Jackson and Gina McCarthy, Senators should also have separation of powers concerns.

Earlier this week, Sen. David Vitter (R-La.), Ranking Member of the Senate Environment & Public Works Committee, released a 123 page document containing McCarthy’s responses to hundreds of questions on a wide range of issues. In today’s post, I comment on McCarthy’s responses to Sen. Vitter’s questions about fuel switching. In Part 2 of this series, I will comment on McCarthy’s responses regarding the administration’s motor vehicle program. [click to continue…]

Post image for How Many Agencies Does It Take to Regulate Fuel Economy?

How many agencies does it take to regulate fuel economy?

Only one — the National Highway Traffic Safety Administration (NHTSA) — if we follow the law (1975 Energy Policy and Conservation Act, 2007 Energy Independence and Security Act); three — NHTSA + EPA + the California Air Resources Board — if law is trumped by the backroom, “put nothing in writing,” Presidential Records Act-defying deal negotiated by former Obama Environment Czar Carol Browner.

Tomorrow, the Senate is expected to vote on S. 493, the McConnell amendment, which is identical to S. 482, the Inhofe-Upton Energy Tax Prevention Act. S. 493 would overturn all of EPA’s greenhouse gas (GHG) regulations except for the GHG/fuel economy standards EPA and NHTSA jointly issued for new motor vehicles covering model years 2012-2016, and the GHG/fuel economy standards the agencies have proposed for medium- and heavy-duty trucks covering model years 2014-2018. The legislation would leave intact NHTSA’s separate statutory authority to regulate fuel economy standards for automobiles after model year 2016 and trucks after model year 2018.

Bear in mind that GHG emission standards and fuel economy standards are largely duplicative. As EPA acknowledges, 94-95% of all GHG emissions from motor vehicles are carbon dioxide (CO2) from the combustion of motor fuels. And as EPA and NHTSA acknowledge, “there is a single pool of technologies for addressing these twin problems [climate change, oil dependence], i.e., those that reduce fuel consumption and thereby reduce CO2 emissions as well” (Joint GHG/Fuel Economy Rule, p. 25327).

The National Auto Dealers Association (NADA), whose members know a thing or two about what it takes to meet the needs of the car-buying public, sent a letter to the Senate today urging a “Yes” vote on S. 493. NADA stresses three points. S. 493 would:

  • End, after 2016, the current triple regulation of fuel economy by three different agencies (NHTSA, EPA, and California) under three different rules.
  • Restore a true single national fuel economy standard under the CAFE program, with rules set by Congress, not unelected officials. Ensure jobs, consumer choice, and highway safety are considered according to federal law when setting a fuel economy standard.
  • Save taxpayers millions of dollars by ending EPA’s duplicative fuel economy regime after 2016.

Let’s examine the first two points in a bit more detail. The NADA letter says: [click to continue…]