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Automakers Craft Emissions Deal With California — Skirting Trump In The Process

Officials from Ford, Honda, Volkswagon, and BMW announced on Thursday that they have agreed to a voluntary deal with the state of California regarding self-enforcement of stricter emissions standards.

Photo by Wojtek Laski/Getty Images

The plan was announced in hopes that the Trump administration may reconsider efforts to curtail emissions goals that were put into place by the Obama administration, Axios reported.

Part of the Trump administration’s plans for emissions in vehicles includes restricting what California can require for its own standards. Under the Clean Air Act, California could enforce goals for higher miles per gallon (mpg) in new cars produced and sold in the state.

The agreement has the potential to shape standards beyond just California, as creating two different standards for cars sold there versus elsewhere would be counterintuitive to the bottom-line for these four companies, which represent 30 percent of new car sales in the U.S.

Mary Nichols, the head of the California Air Resources Board, is hopeful the agreement will create an “olive branch” for the administration to reconsider its planned actions, the Washington Post reported. She added that it was the companies themselves who started the discussion with the state.

In a joint statement from the four retailers, the car companies assessed the agreement as having a positive outcome.

“These terms will provide our companies much-needed regulatory certainty by allowing us to meet both federal and state requirements with a single national fleet, avoiding a patchwork of regulations while continuing to ensure meaningful greenhouse gas emissions reductions,” they said.

The agreement from the company would be to produce fleets of vehicles that could have close to 50 mpg by the year 2026. The original deal produced during the Obama administration, which President Donald Trump is seeking to end outright, had planned for that goal to be reached by the year 2025.



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