u.s. environmental regulators proposed keeping intact tougher fuel-economy standards, intensifying a debate with car makers over one of president barack obama <u+2019>s signature programs in the administration<u+2019>s waning days. the environmental protection agency on wednesday proposed keeping future targets that call for auto makers to sell light vehicles averaging 54.5 miles a gallon, or roughly 40 mpg in real-world driving, by 2025. the proposal, originally planned for next year, raised the prospect that the epa could finalize the future mileage targets before president-elect donald trump takes office on jan. 20. the proposal, now open to a 30-day public comment period, is part of a midterm evaluation of mileage targets that still requires a final determination from regulators originally set for 2018. rules called for regulators to first propose whether the standards intended to cut noxious tailpipe emissions should be relaxed, toughened or left unchanged. but the april 2018 plan for a final determination is flexible and the epa could move to finalize the standards once the 30-day public comment period lapses. a senior epa official on wednesday said the agency<u+2019>s administrator hasn<u+2019>t found a reason to revise the standards. <u+201c>there is no required, precise date on which the final determination needs to be done,<u+201d> said janet mccabe, acting assistant administrator for the epa<u+2019>s air and radiation office. she declined to comment on whether epa administrator gina mccarthy planned to finalize the targets before mr. trump takes office. still, the incoming trump administration could take another look at the standards. john mashburn, a senior policy adviser to mr. trump, said earlier this month the incoming administration would conduct a <u+201c>comprehensive review<u+201d> of all regulations, including fuel-economy rules. he said the mileage regulations were originally meant to combat foreign-oil dependence as opposed to climate change. auto makers have lobbied for relief from the climbing standards, contending that they will be difficult to meet amid lower gasoline prices that are sending shoppers flocking to less-efficient pickup trucks and sport-utility vehicles. the epa released a draft technical report earlier this year predicting car companies would fall short and achieve 50.8 mpg<u+2014>about 36 mpg in real-world driving<u+2014>given current market conditions. but the agency added that manufacturers have a range of technologies at their disposal to reach more ambitious targets at affordable costs, including gasoline direct-injection and stop-and-go features. auto makers panned the epa<u+2019>s move, predicting that current regulations could eventually cost jobs and that consumers aren<u+2019>t buying the kinds of vehicles needed to meet future targets. <u+201c>this extraordinary and premature rush to judgment circumvents the serious analysis necessary to make sure the <u+2026> standards appropriately balance fuel efficiency, carbon reduction, affordability and employment,<u+201d> said the alliance of automobile manufacturers, a washington lobbying group representing a dozen car makers. <u+201c>wishing this fact away does no one any favors, and getting this wrong has serious implications.<u+201d> president obama unveiled the standards in 2011 at the washington convention center with executives from general motors co. , ford motor co. and other car companies seated behind him. auto makers agreed to the targets, codified in 2012, in part with the understanding that a viability assessment was set for standards between 2022-2025. now, after girding for a longer-term debate with government officials, auto makers could need to pursue a more comprehensive rollback of the regulations from the trump administration should the epa complete the midterm review in coming weeks. <u+201c>it is deeply disappointing that eleventh-hour politics in a lame-duck administration has short-circuited a data-driven process for developing regulation,<u+201d> said ziad ojakli, ford<u+2019>s group vice president of government and community relations. <u+201c>ford and the industry stand ready to work with the next administration and congress to find a way forward.<u+201d> the epa sets standards in consultation with the transportation department and california environmental regulators. gasoline prices are currently hovering at close to $2 a gallon, boosting sales of profitable pickup trucks and suvs that are less fuel-efficient and pollute more than smaller cars. the average fuel-economy of vehicles sold in october was 24.8 mpg in real-world driving, down 0.4 mpg from september, according to the university of michigan transportation research institute. mitch bainwol, head of the washington auto alliance, told a congressional committee in september that future mileage targets can<u+2019>t be achieved without significantly higher sales of zero-emission electric cars and other gasoline-engine alternatives that accounted for less than 3% of u.s. sales last year. the epa defended its process as exhaustive. <u+201c>it<u+2019>s clear from the extensive technical record that this program will remain affordable and effective,<u+201d> epa administrator gina mccarthy said wednesday, adding that the program established in 2012 is on track to double fuel-economy, significantly cut carbon pollution and save americans money at the gas pump. the epa on wednesday suggested the mileage targets could be raised further based on the agency<u+2019>s technical analysis. but ms. mccarthy proposed leaving the standards alone in part to provide greater certainty for auto makers that design and engineer vehicles years before they hit dealerships, the agency said. auto makers are already planning to significantly increase output of electric cars in part due to toughening regulations in the u.s. and elsewhere. audi ag , for instance, plans on electric vehicles representing a quarter of sales by 2025. <u+2014> amy harder contributed to this article. write to mike spector at mike.spector@wsj.com
epa moves to keep tougher fuel-economy targets on cars    - wsj
mike spector