The U.S. Environmental Protection Agency (EPA) announced on Thursday, February 12th, the official cancellation of the greenhouse gas reduction credit program that encouraged automakers to install automatic start-stop systems in new vehicles. At the same time, they also terminated the “Endangerment Finding” made during the Obama administration in 2009, marking a significant adjustment in U.S. federal-level climate regulation policies.
In its statement, the EPA mentioned that Administrator Lee Zeldin had signed the final rule to cancel the policy arrangement known as “off-cycle credits.” This mechanism, implemented since 2012, allowed car manufacturers to claim greenhouse gas reduction credits by installing technologies like automatic start-stop to meet federal emission standards.
Automatic start-stop systems automatically shut off the engine in vehicles at red lights or during brief idling to reduce fuel consumption and tailpipe emissions. Due to the incentives provided by the credits, this technology quickly became popular, with around 60% of new vehicles currently equipped with this feature.
However, the EPA pointed out that the actual emission reduction benefits of this technology “lack quantifiable returns” and have become a regulatory loophole for companies to earn emission credits while facing widespread consumer backlash.
Lee Zeldin stated that many drivers believe the automatic start-stop feature affects the driving experience and may potentially increase battery wear. “Companies should not be mandated or incentivized for technology that does not bring substantial emission reduction benefits,” he emphasized. Following the cancellation of the related credits, car manufacturers will now design products based on market demand.
This policy adjustment is rooted in the EPA’s concurrent termination of the 2009 established “Endangerment Finding.” This finding declared that greenhouse gases pose a threat to public health and social welfare, providing the legal basis for a series of subsequent climate regulations, including vehicle emission standards and fuel efficiency requirements.
The EPA believes that the associated regulations increase manufacturing costs and limit consumer choices for affordable vehicles. Last month, the agency submitted a proposal for reconsideration to the Office of Management and Budget; with the signing of the final rule, additional greenhouse gas standards derived from this finding will also be terminated.
President Trump stated that repealing this “disastrous policy from the Obama era” will help alleviate the “restrictions stifling industries” and is an important step towards reducing car prices.
White House Press Secretary Karoline Leavitt stated in a press conference on the 10th that this move will be the “largest deregulatory action in American history,” estimated to save American citizens approximately $1.3 trillion in regulatory costs, with an average reduction of around $2,400 per vehicle.
The policy adjustment has sparked various reactions. The environmental group Sierra Club released a statement criticizing the termination of the “Endangerment Finding” as a “blatant attack on public health.” The organization’s executive director, Loren Blackford, stated that weakening greenhouse gas emission limits will exacerbate extreme weather risks and increase long-term societal costs.
Meanwhile, the Specialty Equipment Market Association (SEMA), representing the automotive aftermarket industry, welcomed the policy adjustment, stating that the new rule will unleash the innovative potential in a crucial sector of the industry that heavily relies on internal combustion engine technology. “This sector generates billions of dollars in economic benefits annually, employing over 330,000 Americans, and can now address emission challenges freely using market mechanisms.”
(Contributed to this article by Naveen Athrappully, The Epoch Times)