U.S. Chamber Expresses Concerns Over California Vehicle Emissions Waiver

Decision Moves U.S. One Step Closer to CO2 Regulatory Train Wreck

WASHINGTON, D.C.—William Kovacs, vice president of Environment, Technology, and Regulatory Affairs at the U.S. Chamber of Commerce, made the following statement today regarding President Barack Obama's executive memorandum directing the Environmental Protection Agency to reconsider California's request for a waiver from the Clean Air Act to regulate vehicle greenhouse gas emissions:

"At a time when we need to jump start our economy, regulating CO2 in this manner would stop most of President Obama's stimulus proposal cold in its tracks and create a regulatory train wreck.

"California should not set national standards for environmental regulation. The President already has the authority to regulate greenhouse gas emissions from motor vehicles under the Energy Independence and Security Act of 2007. Allowing the California waiver would create a patchwork of regulations, be inefficient, and not achieve the desired outcome. As Congress tries to bail out the auto industry, California wants to punch more holes in the bottom of the boat.

"In addition, such a move would put the EPA one step closer to making carbon dioxide 'subject to regulation' under the Act. This would almost certainly extend well beyond cars and trucks and would have the unintended consequence of creating costly and burdensome permitting requirements on millions of construction projects including hospitals, schools, and office buildings. "The U.S. Chamber issued a report last fall outlining the costly impact of regulating CO2 under the Clean Air Act. (The full report is available here: http://www.uschamber.com/publications/reports/0809_co2report.htm.)

Once this occurs it will be almost impossible for the economic stimulus plan to be quickly implemented since the permits cannot be obtained in the year or two in which the infrastructure projects must be completed.

"Why should California be used as a model for environmental regulation when the state's economy is already reeling under the weight of over-regulation? Over nine percent of Californians are already jobless and state taxpayers may receive IOUs instead of their income tax refunds. Rather than punt to the states, President Obama should lead constructively on this issue, carefully balancing the need to save jobs with the need to further improve our environment.

"The Chamber hopes EPA Administrator Lisa Jackson, after careful consideration of the scientific, policy, and legal ramifications of such a decision, will choose not to grant California's request for a waiver to regulate vehicle greenhouse gas emissions."

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

# # #