U.S. House committee to hold hearing on proposed fuel efficiency freeze

WASHINGTON (Reuters) – The House of Representatives Energy and Commerce Committee said it planned a June 20 hearing in the Trump administration’s proposal to freeze fuel efficiency standards at 2020 levels through 2026.

Two subcommittees will jointly contain the hearing, committee Chairman Frank Pallone in addition to other Democrats said in any statement, saying they “enjoy questioning both National Highway Traffic Safety Administration and also the Environmental Protection Agency.”

Heidi King, the deputy NHTSA administrator, and Mary Nichols, their heads of the California Air Resources Board, are both likely to testify around the hearing, officials said.

Last week, 17 major automakers including General Motors Co, Volkswagen AG and Toyota Motor Corp urged the White House to resume talks with California targeted at avoiding a good legal battle during the standards.

Pallone and Representatives Jan Schakowsky and Paul Tonko said from a joint statement that “rolling back our clean car standards threatens American jobs, public health, the climate and consumers.

“The vehicle industry doesn’t even provide you with the Trump Administration’s proposal – no one does, except the oil firms that stand to benefit from Americans spending more from the pump responding to their less efficient cars,” the statement added.

Automakers a while back backed a compromise on vehicle emissions, warning that the lack of an understanding could lead to “a longer period of litigation and instability.”

In instructions to California Governor Gavin Newsom also signed by Daimler AG, Ford Motor Co and Hyundai Motor Corp, the 17 car companies urged an agreement “midway” between the Obama era standards that requirement annual decreases up to 5% in emissions as well as the Trump administration’s proposal.

In a different letter to President Donald Trump last week, they urged “both of the federal government and California to resume discussions and remain available to regulatory adjustments.”

The White House said on Thursday that California had “didn’t put forward an efficient alternative, and we are moving forward to finalize a rule with the purpose of promoting safer, cleaner, plus more affordable vehicles.”

Eighteen states, including California, have vowed court action the administration whether or not it finalizes the freeze. In August 2019 , the administration considered necessary stripping California with the right to impose stricter emissions rules or or require a rising availablility of zero-emissions vehicles.

The Trump plan would increase U.S. oil consumption by about 500,000 barrels daily by the 2030s but reduce automakers’ regulatory costs by well over $300 billion, the professionals said.