California Waiver

At a press conference held January 26, 2009, President Obama announced that he will direct the EPA to review the Bush Administration waiver decision which denied California the right to implement and enforce its motor vehicle GHG (fuel economy) regulations. It is apparent that EPA will not only review the Bush Administration position but they will reverse the decision so that California and 13 other states can implement California's regulations which will require that most vehicles < 10k lbs use significantly less fuel. In parallel, President Obama is directing NHTSA to promptly issue more stringent fuel economy standards for passenger cars and light trucks that will be applicable to the 2011-2015 model year vehicles. To the extent that the California rules are not eventually overturned by the courts, they will be the dominant standard with respect to fuel economy in the U.S. unless or until the Congress and/or the US EPA confront the issue. Many within industry advocate a single national standard in lieu of a patchword of conficting federal and state requirements.