Automakers May Face New Standards

A vote last week by a state regulatory commission means auto manufacturers may have to revamp the cars and trucks they sell in Florida to meet a tough new emissions standard.

Despite pleas from automakers about hard economic times, the Florida Environmental Regulation Commission voted 6-1 to adopt California's tougher emissions standard as proposed by Florida Gov. Charlie Crist. State lawmakers and federal regulators will have to approve the new rule for it to take effect as planned in 2013.

Car and truck emissions currently account for about 40 percent of greenhouse gases produced in Florida.

"We have got to start reducing our greenhouse gases - those are the chemicals that cause global warming," said Eric Draper, lobbyist for the Audubon Society. "If we don't, our cities are going to be under water."

The state standard would expand on new fuel economy regulations expected from the federal government soon. The federal rule would also reduce greenhouse gas emissions.

By adopting California's standard, Florida would force manufacturers to reduce emissions from new cars and trucks in Florida by an extra 10 million metric tons by 2020 - the equivalent of taking nearly 1.1 million vehicles off of the road per year, according to state environment officials.

Changes Could Raise Prices

Automakers and dealers warned that the technological changes required to meet the standard will be costly. That, they said, will drive up the cost of vehicles and could reduce the availability of some cars and light trucks in the state.

For some vehicles, the cost might rise $5,000, maybe even up to $9,000, lobbyist Ron Book told the commission.

One of Tallahassee's most powerful lobbyists, Book appeared at the commission's meeting last Tuesday on behalf of AutoNation, the country's largest auto dealer, which is based in Ft. Lauderdale.

"Vehicles will go up in price," he said. "I can assure you those light trucks ... that are readily available, and those SUVs that are sought after, will be almost nonexistent in Florida."

But Sole and environmental advocates pointed out that some light trucks and SUVs meet the proposed standard, which will not apply to heavy trucks such as the Ford F-250. Even if the price of a new vehicle rises by several thousand dollars, consumers will reap equal or greater savings in lower fuel costs over the life of the vehicle, they said.

"It's unfortunate that the industry has raised some of the issues that it has; I have to admit, I think it harkens back to the '70s, when they said the same thing about the catalytic converter, other environmental initiatives and safety initiatives," Sole said.

"What I've personally seen over the years is if you ask the auto industry to achieve a goal, they will achieve it. And you know what - they're going to achieve it at the least cost to them as possible, because that's in their best interests."

Auto Industry 'On Their Backs'

The 6-1 commission vote came on the same day that Ford, GM, Toyota and Honda reported drops in sales of more than 30 percent in November alone. America's major carmakers are asking Congress for $34 billion to stabilize their struggling companies, promising to cut back on executive pay, corporate jets and other costs in exchange.

"The auto industry - it is no secret - is on their backs," Book said, pleading with the commission not to add more regulation.

Charles Territo of the Alliance of Automobile Manufacturers said having to comply with different standards is too burdensome.

That was enough to persuade Commissioner Joe Joyce to cast the lone "no" vote. The modest emissions reduction target of the California standard, he said, did not justify forcing automakers facing tough times to meet different standards for different states.

Sole acknowledged that the reduction in emissions would be incremental, but said it was nonetheless important.

"A 10 million metric ton reduction is something I look forward to doing. We need to achieve that," he said.

California is hoping to implement its standard next year, but has not yet received the necessary federal waiver. President-elect Barack Obama has already signaled that he is inclined to approve the California rule. Federal law will allow other states to follow suit if California gets its waiver.

Meanwhile, all states are awaiting the new federal fuel economy standard, which would set a minimum of 35 miles per gallon in 2020. Unlike the federal rule, the California standard sets specific requirements for reducing tailpipe gas emissions. Both the federal and state rules include incentives for manufacturers to produce ethanol-burning "flex-fuel" vehicles.

Spirited as the debate was before the commission, it is likely to be much tougher next spring when it reaches the conservative Legislature.

"We're going to have a hard time with this rule in the Legislature," Draper said. "The car industry is willing to spend millions of dollars on lobbyists, not on research and producing clean cars. I think they'll have an easier time over there."