February 6, 2009
Laura Henderson (202) 621-2951

IER: EPA Decision to Move towards Costly Regulations Disappointing

Washington, DC – Institute for Energy Research (IER) President Thomas J. Pyle today issued the following statement on the Obama Administration’s decision to move forward in the process to allow California to designate its own emissions standards for automobiles, which will force the American auto industry to take on massive new cost and compliance burdens and likely raise car and truck costs for consumers across the country:

It is disappointing that the Obama Administration chose to move towards imposing this regulation—which basically creates a $3,000 car tax—at a time when our nation faces record unemployment, a struggling auto industry, and a troubled economy. Only a few months ago, taxpayers sent billions of their hard-earned and much-needed money to bail out the auto industry. That investment will surely be a waste if we allow Sacramento to set the standards for Detroit’s business plan.

“Alarmingly, there is no real evidence to support claims that the heightened emissions standards will even affect the environment. In fact, if all cars and trucks in the United States met this standard today, emissions increases from the rest of the world would more than replace those California reduced within a mere five months. Now is not the time to hike costs for consumers and hurt our auto industry to attempt a proposal that probably won’t meet its goals.

NOTE: The Environmental Protection Agency (EPA) today began the legal process required to green light California’s request to create its own emissions standards for automobiles. The Auto Alliance has estimated that the mandate will add up to $3,000 to the cost of each car and will cause the auto industry to slip further behind the technological curve as it struggles to adjust to California’s choices, rather than taking much-needed steps to meet the imperatives of customer choice.

The Institute for Energy Research (IER) is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. IER maintains that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.


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