EPA Takes Hard Line on Compliance

Auto Makers Will Not be Able to Buy their way out of compliance with the emissions component of the new federal fuel-economy mandate, warns a senior Environmental Protection Agency official.

Reminiscent of the European Union's carbon dioxide mitigation standard, the EPA's stand could serve as a wakeup call as year after year, OEMs have opted to pay fines instead of meeting corporate average fuel economy standards set by the National Highway Traffic Safety Admin. And ironically, the list of offenders is dominated by Europe-based auto makers.

They “can't go in to EPA and say, ‘I don't plan on ever complying. Here's a check,’” says William Charmley, deputy director-assessment and standards division of the EPA's office of transportation and air quality.

By law, such an approach is “not allowed,” Charmley tells Ward's during a powertrain conference hosted in Ann Arbor by the University of Michigan Transportation Research Institute.

Under the laws that govern CAFE, however, non-compliance is allowed and subject to penalties.

Between 1983 and 2007, the latest information available, NHTSA has collected $772 million in fines associated with CAFE non-compliance. Historically, the brands among the most frequent offenders are Mercedes-Benz and BMW.

In the event of non-compliance with the new mandate, there are “penalty provisions,” Charmley tells the conference. But they remain undetermined.

Meanwhile, the EPA champions air-conditioning system upgrades as a means to help auto makers meet pending standards. Improving a system's efficiency and reducing hydrofluorocarbon leakage represent “low-hanging fruit” in terms of cost-effective fixes, he says.

Proposed wording for the regulation, which blends emissions restrictions with fuel-economy requirements, will be released this month to invite public comment. The final rule, expected to require fleet-wide fuel economy of 35.5 mpg (6.6 L/100 km) by 2016, is scheduled for implementation in March 2010.

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