New Jersey Clean Air Council

1. New Jersey Clean Air Council 4/11/07

2. Fuel Economy Has Increased • Fuel economy rates in cars increased more than 100 percent since 1974. • Fuel economy rates in trucks (minivans, vans, SUVs, and pickups) increased 53 percent since 1975. • Today’s average light truck gets better mileage than an average 1970s compact car. • The average 2004 SUV gets 33 percent better mileage than the average car in 1975. 4/11/07

3. 226 Million 42% Vehicles 68 Million % Truck 16% 2000s 1970s 1980s 1960s 1990s Vehicle Population & Mix 4/11/07

4. 2.9 Trillion Total Miles Traveled 719 Billion Crude Oil Imports 38% 13% 61 101 137 1990s 1980s 1970s 2000s 1960s Vehicle Miles Traveled 63% Gasoline Consumed (Bils. Gallons) 4/11/07

5. Consumer Choice 4/11/07

6. Vehicles Are More Efficient Source: “Light-Duty Automotive Technology Trends 1975 Through 2006” EPA December 2006 4/11/07

7. Consumers Demand Additional Equipment 4/11/07

8. 1990 BMW 3-Series City FE – 18 Hwy FE – 23 Comb FE – 20 Disp (cc) – 2429 HP -- 168 Torque – 222 0-60 – 8.5 Em Std – Tier 0 2001 BMW 3-series City FE – 21 -- 17% Hwy FE – 30 – 30% Comb FE – 24 – 20% Disp – 2979 – 23% HP – 225 – 34% Torque – 290 – 31% 0-60 – 6.4 – 25% Em Std -- LEV BMW 3-series 4/11/07

9. 1990 MY City FE – 28 Highway FE – 33 Engine Disp – 1.6L HP – 102 Torque – 101 Weight – 2390 Emissions – Tier 0 2007 MY City FE – 32 Highway FE – 41 Engine Disp – 1.8L HP – 126 Torque – 122 Weight – 2530 Emissions – Tier2 Bin5 Toyota Corolla 4/11/07

10. 1992 E-Class City FE – 20 Hwy FE – 25 Disp. – 2.6L HP – 158 Torque – 162 Weight – 3415 0-60 time – 8.0 secs Emissions – Tier 0 2000 E-Class City FE – 21 Hwy FE – 30 Disp. – 3.2L HP – 221 Torque – 232 Weight – 3624 0-60 Time – 7.1 secs Emissions - LEV Mercedes Benz E-Class 4/11/07

11. Energy Usage & GHGs • In our auto manufacturing plants, automakers have committed to reducing greenhouse gas intensity by 10% by 2012. • Regarding our products, automakers are investing billions of dollars each year in many different types of fuel-efficient technologies. Burning fuel creates CO2, so the only ways to reduce CO2 from autos are to reduce the size of the U.S. vehicle fleet, to drive less or to use less fuel in vehicles. 4/11/07

12. Energy Usage & GHGs • CA’s AB 1493 regulation will have no measurable effect on global climate. • Carbon Dioxide is not smog. Smog is formed by emissions of NOx and HC—not by CO2. Automakers have already reduced smog-forming emissions from autos by 99% since the 1970s. Unlike smog, carbon dioxide poses no health risk. Nonetheless, individual vehicle CO2 emissions have declined 56% from cars and 44% from light trucks during that time. 4/11/07

13. Fuel Efficiency is Increasing • Automakers sell close to 200 models that achieve more than 30 MPG on the highway, according to EPA estimates. • All models on sale today are available with fuel-efficient technologies, such as cylinder deactivation, variable valve timing, continuously variable transmissions and more. • More than 60 models of advanced technology vehicles are in development or on sale, including hybrid-electric vehicles, clean diesel, hydrogen internal combustion engines and fuel cells. 4/11/07

14. Fuel Efficiency • The 2005 Energy Bill includes consumer tax incentives to help increase the number of advanced technology vehicles on our roadways. States have adopted their own consumer incentives to further accelerate the introduction of advanced technology autos. • The federal government is in the process of increasing nationwide fuel economy standards for light trucks for seven years in a row (2005-2011). 4/11/07

15. CA AB 1493 • Under CA’s AB 493 regulation, consumers would pay an average of at least $3,000 more for a new auto. • Only a handful of today’s models could meet the CA regulation if it were in effect now, so consumers could expect to see fewer models to choose from under the CA regulation. 4/11/07

16. Consumer Needs • In 2004, 58% of new vehicle sales were minivans, SUVs and pickups, demonstrating that consumers favor light trucks. • The CA regulation will hurt those people who depend most on large cars, pickups, SUVs and minivans, including farmers, trades people, large families and small business owners. 4/11/07

17. Need a National Policy • Federal laws exist to avoid a confusing and conflicting mix of state laws. There would be marketplace chaos if states mandated which products could be sold within their boundaries. Consumers would suffer higher prices and severely restricted choice of automobiles if each state were deciding for itself which new vehicles can be sold. • NHTSA has sole authority to set a uniform, national fuel economy standard. NHTSA underscored this fact when issuing its notice of CAFE reform on August 23, 2005. 4/11/07

18. National Policy • When setting “maximum feasible” fuel economy standards for the nation, NHTSA considers technological feasibility, safety, affordability, emissions, consumer choice and effects on American jobs. By contrast, California did not adequately consider any of these factors. A consistent national policy makes most sense to avoid such policy oversights. • The federal Clean Air Act only allows California to regulate specific air pollutants, such as NOx and HC, in order to address unique pollution challenges found in parts of CA. Carbon dioxide is not a pollutant, not a smog-forming emission and not regulated under the Clean Air Act. 4/11/07

19. Environmental Harm • CA’s AB 1493 regulation will have the unintended consequence of resulting in more smog than would otherwise exist. Because new autos will be more costly under the CA regulation, consumers will hold on to older, higher emitting autos longer, thereby slowing the trend of declining smog-forming pollutants. • Unintended consequences, such as the negative impact on smog, underscores why a consistent nationwide policy is needed. Individual states should defer to the federal government to implement a comprehensive, nationwide energy policy, instead of a patchwork of ineffectual GHG requirements. 4/11/07

20. Alliance Members 4/11/07

21. The End www.autoalliance.org 4/11/07