New Rules Would Limit CO2 emissions.

New Rules Would Limit CO2 emissions.

The White House energy and climate czar, Carol Browner, has just given the clearest indications to date that the Obama Administration plans to press ahead on both regulating CO2 emissions under the Clean Air Act and on developing a stronger program for reducing emissions from cars and light trucks.

Speaking to reporters during a National Governors Association meeting over the weekend, Browner said that the Environmental Protection Agency is in the process of reevaluating its obligations about whether or not to treat CO2 and other global warming gases as official “pollutants” that would trigger regulatory action. Quoted in a Dow Jones Newswire story as saying that EPA “will make an endangerment finding,” Browner’s statements have sweeping implications for not only the auto sector, but also for power plants and any other industry that emits greenhouse gases.

While such a regulatory undertaking would be enormous, EPA already started the process, issuing a comprehensive advance notice of proposed rulemaking (“ANPR”) last July. That ANPR outlined ways to use the Clean Air Act to cut global warming pollutants, including the option of having EPA issue tailpipe GHG standards designed in a manner similar to the approach California has taken with its “Pavley” standards for reducing CO2 from tailpipes.

These latest statements from Browner amplify the signal that Obama himself gave on his first Monday in office, when he instructed EPA administrator Lisa Jackson to revisit the agency’s previous denial of permission for California to press ahead with its own automobile GHG standards.

However, Browner also said that the White House wants EPA and DOT (the traditional overseer of CAFE standards) to coordinate on a national policy for auto emissions. That offers some hope that car makers won’t be faced with conflicting requirements coming from multiple agencies. Addressing the governors meeting, Browner said, “We need a unified national policy when it comes to clean vehicles,” and her remarks indicated that the administration is evaluating regulatory proposals in the context of the restructuring challenges faced by General Motors and Chrysler.

Thus, the White House seems to be hearing the industry’s plea for a single national approach on the issue. Although the remarks gave no indication of exactly how and when new standards might be set, two themes came through.

One is a sensitivity to costs and challenges, as she remarked “we are looking at how do we get to a unified approach in terms of the next generation of cars.”

The other is a clear focus on clamping down on tailpipe. “We take it very seriously, the impact of cars … in terms of greenhouse gas emissions,” Browner was quoted as saying, also remarking that “we’re just trying to figure out how do you do it in a way that the car companies have a clear [obligation].”

The sense that a national program might seek the greatest common denominator rather than a least common denominator in terms of stringency came through in remarks by Washington state governor Christine Gregoire. Washington is among the states that want to opt in to the California tailpipe GHG program. Refering to the California standards during the governors’ meeting, Gregoire was quoted as saying, “This ought to be the policy of the country if we’re going to move forward with alternatives for the automobile.”

In short, it’s not lost on anyone that the California approach provides the clearest mandate on CO2 emissions, or that one option for a single national standard is that California sets the goal while EPA and DOT coordinate in spelling out the regulatory details of how automakers are required to meet it.

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