There’s a lot of talk these days in Washington about creating new laws
to cut greenhouse gas emissions. One major question right now is how
the government will handle carbon dioxide emissions from vehicles. Any
new regulation is expected to have some financial impact on automakers.
And, as Dustin Dwyer reports, the carmakers are looking to share the
burden:
Transcript
There’s a lot of talk these days in Washington about creating new laws
to cut greenhouse gas emissions. One major question right now is how
the government will handle carbon dioxide emissions from vehicles. Any
new regulation is expected to have some financial impact on automakers.
And, as Dustin Dwyer reports, the carmakers are looking to share the
burden:
Back in March, the House Energy and Commerce Committee held a hearing
on how the auto industry could help fight global warming. All the
bigwigs in the U.S. auto industry were there: the heads of Ford,
General Motors and Chrysler, the North American president of Toyota and
the head of the United Auto Workers.
At the hearing, all of them agreed they would support a cap on CO2
emissions from vehicles, but they had a sort of caveat:
“We believe that there’s a lot of merit to it. And we believe if it’s
upstream…”
“For Cap and Trade, I think the further upstream you go, the more
efficient you’re going to be.”
“I’d just echo the upstream part.”
“The upstream as I stated earlier and the rest is absolutely critical.”
That was Ron Gettlefinger of the UAW, Jim Press of Toyota, Alan Mulally
of Ford, and Tom Lasorda of Chrysler.
So what do they mean by “upstream”? Here’s Ford spokesman Mike Moran:
“Lower carbon fuels, so that it’s just not what comes out of the
tailpipe, but you’re moving upstream and including the fuels that would
be included in the equation in the transportation sector.”
Basically the idea is, if you have less carbon in the fuel, you’ll pump
less carbon dioxide into the air.
But car companies really can’t take the carbon out of fuel. That’s
really more of a job for the oil industry. So are auto executives just
passing the buck?
David Friedman of the Union of Concerned Scientists says yeah, they’re
dodging the issue:
“The auto companies are basically finding more creative ways to say,
‘No,’ they won’t do anything to improve their products.”
Auto executives would say they’re already working to improve their
products, with millions of ethanol-capable vehicles on the road, and a
growing number of gas-electric hybrids. And many in the auto industry feel that they’ve been singled out for
regulation in the past.
The carmakers main lobbying group, the Alliance of Automobile
Manufacturers says that for the past 30 years, the auto industry has
been the only industry subject to carbon dioxide regulations. Though
most people try to avoid saying so in public, there is clearly some
tension between the auto industry and the oil industry.
Louis Burke is with Conoco Phillips. He says his company is willing to
do more to cut greenhouse gas emissions. In fact, the oil company just
came out in favor of setting up mandatory federal rules. Those include a
possible system that caps carbon dioxide emissions, and allows
companies to trade carbon credits as if they were commodities:
“You can cap and trade at some point down within the value chain,
whether it’s all the way upstream, or whether it’s pretty far downstream. You
can also apply a carbon tax throughout the whole value chain. The whole
idea is it’s gotta be transparent, it can’t penalize any one group.”
So upstream, downstream, the point is something needs to be done.
David Friedman of the Union of Concerned Scientists says everyone can
do a little more:
“Everyone has to do their part. That means car companies have to
produce vehicles to get more miles to the gallon. Oil companies need to
have lower carbon fuels and yes, even consumers need to find ways to
drive less.”
It’s still not clear what exactly what approach Congress will take
toward cutting auto emissions, but while leaders in Washington try to
settle on a plan, local and state officials across the country are
coming up with their own plans.
California and 10 other states have their own plans to regulate
tailpipe emissions. Those plans are being challenged in court by the
auto industry. And California has also gone forward with the nation’s first low carbon
standard for fuels.
That “upstream” plan has the support of both auto and oil companies.
For the Environment Report, I’m Dustin Dwyer.