Business & Tech

Trump announces challenge to Obama-era fuel standards

President Donald Trump hosted a round-table discussion at the American Center of Mobility in Ypsilanti, Mich., on Wednesday as he prepared to move against Obama-era automobile fuel consumption rules.

Evan Vucci/Associated Press

President Donald Trump hosted a round-table discussion at the American Center of Mobility in Ypsilanti, Mich., on Wednesday as he prepared to move against Obama-era automobile fuel consumption rules.

YPSILANTI, Mich. — President Trump announced Wednesday that the administration will reexamine federal requirements governing the fuel efficiency of cars and trucks, moving forcefully against Obama-era environmental regulations that Trump says are stifling economic growth.

Trump revealed his plans during a speech at an automotive testing center near Detroit after discussing the issue during a round-table meeting at the American Center for Mobility with auto company executives and workers.

Advertisement

‘‘This is going to be a new era for American jobs and job creation,’’ Trump said at the meeting.

The EPA under Obama had promulgated a rule for cars and trucks requiring a fleetwide average of 36 miles per gallon in real-world driving by 2025.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

Trump’s decision, while having no immediate effect, requires the Environmental Protection Agency to determine no later than April 2018 whether the 2022-2025 standards established are appropriate. If the EPA determines they are not appropriate, the agency will submit a new proposal next year.

‘‘My administration will work tirelessly to eliminate the industry-killing regulations, to lower the job-crushing taxes, and to ensure a level playing field for all American companies and workers,’’ Trump said at the center, which produced B-24 bombers during World War II and is being converted into an automotive testing and product development facility.

Trump’s announcement is expected to set the stage for weaker fuel efficiency standards as well as drawn-out legal battles with environmental groups and states such as California that adopted their own tough tailpipe standards for drivers.

Advertisement

‘‘These standards are costly for automakers and the American people,’’ said EPA administrator Scott Pruitt. He promised a ‘‘thorough review’’ that will ‘‘help ensure this national program is good for consumers and good for the environment.’’

The Alliance of Automobile Manufacturers — which represents a dozen major car manufacturers including General Motors, Ford, Fiat Chrysler, and Toyota — praised Trump’s action. It said he was creating an opportunity for federal and state officials to ‘‘reach a thoughtful and coordinated outcome predicated on the best and most current data.’’

Environmental groups said Trump and his team appeared intent on easing gas-mileage requirements set by Obama.

‘‘If they succeed we’ll pay more at the pump, depend more on oil from bad countries, drive up the trade deficit, and pollute our kids’ atmosphere,’’ said Dan Becker, director of the Safe Climate Campaign.

Senator Edward Markey, Democrat of Massachusetts, said withdrawing the fuel efficiency standards will force families to pay more at the pump.

He said rolling back the regulations would also cause uncertainty for the auto industry and threaten economic and employment gains automakers have made in recent years.

Markey is a member of the Senate Environment and Public Works Committee.

As a practical matter, Trump’s announcement will target the Obama administration’s January decision to lock in strict gas mileage requirements for cars and light trucks, ending a review process before the Democrat left office.

Back in 2012, the Obama administration set fuel-economy regulations for model years 2017-2025 and agreed to complete a midterm evaluation by 2018. But seven days before Obama left office, the EPA decided to keep the stringent requirements it had set in place for model years 2022 to 2025. The industry balked at the decision, insisting it was rushed through to beat the change in administrations.

Trump said he’s putting that midterm review back on track, so officials can spend another year studying the issue before setting new standards in 2018.

While the administration has not said explicitly it wants to weaken the standards, a senior White House official said the Obama-era EPA had ignored reams of data cited by the automotive industry. The official spoke on condition of anonymity at a White House briefing in order to outline the action, despite the president’s criticism of the use of unnamed sources.

The Alliance of Automobile Manufacturers last month urged EPA administrator Scott Pruitt to relax the standards, saying they will drive up car costs, price customers out of the market, and depress the industry. Obama’s EPA had argued the costs to consumers were mitigated by gas savings and that the rules would decrease greenhouse gas emissions that contribute to global warming.

Trump told the auto executives that while he’s attuned to concerns about the environment, he doesn’t want to stifle jobs.

‘‘We want you to make great cars. And if it takes an extra thimble full of fuel, we don’t want that to stop making it,’’ he said. ‘‘Sometimes it’s a tiny amount of fuel. It’s a very small thing we’re talking about.’’

Trump campaigned on eliminating ‘‘job killing’’ regulations, and the administration is expected to take additional steps in the coming days to roll back environmental regulations.

Rhea Suh, president of the Natural Resources Defense Council, said the change ‘‘makes no sense.’’

‘‘Mileage standards save consumers money at the gas pump, make Americans less dependent on oil, reduce carbon pollution, and advance innovation,’’ she said.

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.