WASHINGTON -- Fast-selling light-duty trucks and sport-utility vehicles would face tougher emission standards under a proposal the Environmental Protection Agency plans to unveil as early as this month.
The proposal is expected to call for tough rules similar to those California enacted last year. The plan the agency is leaning toward would require light-duty trucks to meet largely the same standards as cars, ending the system of looser tailpipe requirements for bigger, more-powerful vehicles, people familiar with the proposal said.
The resulting higher costs could be a blow to General Motors Corp., Ford Motor Co. and DaimlerChrysler AG, which now derive much of their profits from their popular trucks and sport-utility vehicles.
But on some issues, the agency is expected to provide more flexibility than California did. For example, industry, environmental and government officials say the EPA is unlikely to follow the state's decision essentially to eliminate auto makers' diesel-powered light vehicles. Such vehicles could be a source of advances in fuel economy. Moreover, the agency is expected to push the oil industry just as hard as the auto companies, calling for a far-cleaner gasoline nationwide, these people say.
Then and Now
How the expected EPA proposal compares with provisions in the 1990 Clean Air Act
Clean Air Act required:
- Cars to get dashboard warning lights that indicate whether pollution control devices are working.
- Cars to meet tougher emissions limits and stay clean for 10 years or 100,000 miles, up from five years or 50,000 miles.
- Oil companies to sell cleaner, reformulated gasoline in nation's nine smoggiest cities.
EPA proposal likely would:
- Require light trucks to meet largely the same requirements as cars.
- Require gasoline to have lower levels of sulfur, which clogs catalytic converters.
- Allow continued use of some diesel engines, which are expected to lead to more fuel-efficient cars.
The proposal isn't final, and details could change. "We are still engaged in productive discussions with the auto and fuels industries to develop a plan that works for the nation," said Loretta M. Ucelli, an EPA spokeswoman. "No final proposal has been developed." Moreover, the White House's Office of Management and Budget could modify the plan.
Corporate Cross-Fire
In shaping the new rules, which would take effect as soon as the 2004 model year and are likely to set tailpipe emissions standards for a decade or more, the agency has been caught in a cross-fire between oil and auto companies.
Car makers want far-cleaner gasoline nationwide, which would take some of the regulatory weight off autos, and they hope to protect the lucrative light-truck business from a major environmental crackdown.
Oil companies want a regional cleaner-gasoline standard, with lesser requirements in less-polluted areas and provisions to protect small refineries.
EPA officials have met repeatedly with both industries, as well as with environmental advocates, seeking a compromise that forces the industries to make some sacrifices. According to industry, environmental and government officials, the proposal is likely to call for a national low-sulfur gasoline standard close to the one that car makers want. But it will also seek to provide flexibility for small refineries, most likely by allowing them to bank and trade pollution rights for several years. Sulfur in gasoline clogs cars' high-tech catalytic converters.
'Fleet Average' System
Ultimately, auto makers would likely see sport-utility vehicles and light trucks, including trucks of as much as 8,500 pounds including payload, merged into one broad category with cars. The proposed regulation is likely to use a California-style "fleet average" emissions system, perhaps phased in over a few years. Under that system, auto makers can build vehicles with a range of emission levels, but the total fleet has to average out to a certain overall emissions level.
Car makers have argued that it is unfair to stick powerful work trucks in the same category as small passenger cars. The industry offered to reduce emissions but wanted trucks that weigh 6,000 pounds or more put in a different category.
In a potential win for car makers, the agency's proposal isn't expected to effectively eliminate diesel vehicles, as California did. But the EPA is moving toward requiring a cleaner diesel fuel.
A spokesman for the Alliance of Automobile Manufacturers confirmed that its members were involved in discussions with the EPA but wouldn't comment on the substance of the talks.
Cost Unclear
The proposal's cost is unclear. Estimates for mechanisms to meet California's standards range from $190 a vehicle to more than $1,000. The American Petroleum Institute estimated that a low-sulfur fuel set at California's level could cost as much as six cents a gallon more to produce; environmental groups have estimated the cost to be lower.
Meanwhile, states could box in the EPA by moving to pass California's rules, creating a patchwork of standards around the country.
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