WASHINGTON -- The head of California's Air Resources Board said she was willing to talk with automakers about modifying one aspect of the state's landmark tailpipe emissions regulations.
Board Chairwoman Mary Nichols, speaking to reporters at the SAE Government/Industry meetings on Monday, said she was open to discussing setting "regional" rather than state-by-state standards for tailpipe emissions.
The consideration comes after California auto dealers expressed concerns that automakers could be forced to stop selling larger less-efficient vehicles there because of the state's proposed strict regulations, which could encourage customers to buy larger vehicles in another state.
A regional approach would largely protect California from this issue.
Dealers' concerns stem from a regulation California adopted in 2002 that will require automakers to cut tailpipe emissions by 30 percent by 2016.
To do so, automakers would have to boost fleetwide fuel economy to 36.8 mpg; 43.7 mpg for passenger cars. Thirteen states have adopted California's requirements and three others are in the process.
Automakers filed suit in three states to block the rules -- losing in Vermont and California -- contending California's rules would require them to meet a patchwork of regulations among the states. A third lawsuit in Rhode Island is pending.
The National Automobile Dealers Association said the "California approach, which is untested, fails to look at the impact on the national economy, limits consumer choice and ignores concerns about passenger safety," said Andrew Koblenz, NADA vice president for legal and regulatory affairs.
In December, Environmental Protection Agency Administrator Stephen Johnson rejected California's request for a waiver under the Clean Air Act to impose the rules. The states have sued to overturn the waiver and bills have been introduced in Congress to overturn it as well.
Nichols rejected a suggestion to allow only California to retain the rules and not the other states. "We do not want to negotiate away other states' rights," she said.
Automakers said they were more hopeful that a compromise will be worked out.
Dave McCurdy, president and CEO of the Alliance of Automobile Manufacturers, a trade group that represents Detroit's Big Three, Toyota and six other automakers, said the companies were reaching out to California.
"We can have a national fuel economy policy and still allow California a role as a laboratory for innovative approaches to reducing carbon dioxide emissions," McCurdy said, stressing that a national approach is better.
"We're not whining and we're not complaining."
Still, both sides are far apart on the issue.
Nichols downplayed the impact of the rules, saying most of it could be accomplished with a small increase in costs and "a little bit of creative repackaging." She also said the board was working on setting even higher standards between 2016 and 2020, with plans to unveil a proposal before year's end.
"We're not talking about pushing beyond the limits of what the industry can do," she said.
GM has said the California rules could force it to stop selling 80 percent of its vehicles in California and add thousands of dollars to the cost of every vehicle.
All three major presidential candidates have agreed to support California's request.
Underscoring the industry's willingness to compromise, McCurdy noted automakers met with California Gov. Arnold Schwarzenegger last week "to open a dialogue and find common ground."
You can reach David Shepardson at (202) 662-8735 or
[email protected]. ________
With all three candidates favoring California's request, I'll sleep nights.