Energy Policy Insider

Cleaner Cars standards

This legislative session, Minnesota's elected leaders have the opportunity to support the Cleaner Cars standards, policy that will not only reduce global warming pollution in Minnesota and save the state millions, it would also boost our growing ethanol industry.

fuel gauge
Cleaner Cars standards will mean cars go further on less gas, saving money and pollution.

A pollution solution
Standards decrease emissions, visits to the pump

The Cleaner Cars standards could be a huge boon for Minnesota. The legislation requires car manufacturers to lower global warming pollutants from new passenger vehicles—using off-the-shelf technology available today—30 percent by 2016.

The Minnesota Climate Change Advisory Group, with its goal of preparing a plan for reducing the state’s global warming pollution, performed a thorough analysis of the impact of adopting the Cleaner Cars standards. The group found the standards would reduce global warming pollution more than 13 million metric tons by 2025.  This policy would also make progress toward the 2007 goal set by the Minnesota Legislature and Governor Pawlenty to reduce global warming pollution 80 percent by 2050.

In addition to saving pollution, the Cleaner Cars standards would save drivers money…to the tune of more than $260 million by 2025. Vehicles that meet the stricter tailpipe standards will have better fuel economy, getting everyone further on less gas.

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This policy will give automakers incentive to support the availability of alternative fuels like ethanol.

Extra credit
Cleaner Cars standards mean a bigger boost for alternative fuels

Vehicles must meet certain standards, and auto manufacturers receive credits for features that help cars satisfy the requirements. Under the Corporate Average Fuel Economy (CAFE) standards in the 2007 federal energy bill, manufacturers receive credit for vehicles that are capable of running on alternative fuels like ethanol, but that credit will phase out by 2020. However, under the Cleaner Cars standards, manufacturers will receive credits for vehicles that can run on alternative fuels only if the vehicles are actually using the cleaner fuel, and this credit won’t phase out over time.

The Cleaner Cars standards therefore give auto manufacturers incentive to back wide availability of alternative fuels like E85 and the development of more E85 stations.

In addition, to certify compliance with the Cleaner Cars standards, passenger vehicles will be tested with conventional gasoline. The use of E10 or E20—which makes the car even cleaner—neither restricts what auto manufacturers may sell, nor causes a compliance liability issue for the manufacturers.

Ric Fohrman
Auto dealer Ric Fohrman is one of many Minnesotans who support the Cleaner Cars standards.

Cleaner cars in demand
States and consumers desire innovation

According to a Minnesota Environmental Partnership poll of 800 registered voters, Minnesotans strongly support auto manufacturing standards to reduce global warming emissions. A dozen states, plus California, have already adopted the Cleaner Cars standards, representing more than 40 percent of new car sales in the United States.

The 2008 Consumer Reports Annual Auto Issue puts automakers that have embraced the growing market for cleaner, more efficient cars and trucks on top. That paragon of marketplace research ranked the best and worst cars of 2008 and issued automaker report cards. Ford, GM, and Chrysler ranked among the 5 worst, with low fuel economy cited as one of the commonly reported drawbacks in their models. Policies like the Cleaner Cars standards will drive innovation in old legacy industries.

roadblock
The EPA has temporarily blocked states from implementing tougher vehicle emissions standards.

Temporary roadblock
Federal government in the way...for now

California has authority under the Clean Air Act to set tougher emissions standards for vehicles, but it must have a waiver from the U.S. Environmental Protection Agency (EPA) in order to implement the law. Once the waiver is granted to California, other states that have already adopted the standards can move forward with implementation as well. Due to the EPA’s recent denial of California’s waiver, states are now stuck with the weaker emissions reductions called for in the federal energy bill.

Minnesota, Iowa, and 17 other states are suing the EPA on the grounds that adopting the Cleaner Cars standards is a states’ rights issue. The remaining three top presidential candidates have all stated they would support granting California the needed waiver. Whether in court or with the swearing in of a new president, the Cleaner Cars standards are expected to be authorized within the year.

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Fresh Energy is a nonprofit organization leading the transition to a clean energy system. One that supports the health of our economies, our communities, and our environment while moving us toward energy independence. www.fresh-energy.org