Industry members have again asked the Environmental Protection Agency (EPA) to deny a California greenhouse gas (GHG) emission waiver. The state has sought the Clean Air Act since 2004 when the California Air Resources Board (CARB) required automakers reduce GHG emissions by 30 percent by 2016. But the aftermarket could stand to benefit from a low-GHG emission dictate.
Under the Bush administration, the EPA denied the California waiver request. A year later, President Obama, with urging from Mary Nichols, CARB chairman, ordered the EPA to reconsider. A decision is likely to emerge later this year. The administration will either grant the waiver or propose a national standard that would combine requirements for reducing GHG emissions and increasing Corporate Average Fuel Economy (CAFE) standards.If granted, a minimum of 13 other states and the District of Columbia would adopt the California regulation. Some believe they cannot meet the California standard — they can. Prior to the hearing, Tom Cackette, CARB's chief deputy executive officer, said if the California GHG standard in 2016 were converted into an mpg equivalent, it would equate to a national mpg fleet average of 33.8.
"The automakers can absolutely meet the California standard," Cackette says.
The aftermarket impact of higher GHG emission limits — whether nationally or only in California and its acolyte states — could be positive. Cars meeting tougher GHG emission standards will be more expensive, and buyers may decide to keep older vehicles.
It may also create aftermarket sales opportunities for refrigerant, air conditioning components and other parts. For example, most states will follow California in phasing out R-134a as the refrigerant of choice and switching to HFO-1234yf.
Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA), says that a requirement for HFO-1234yf (which has not yet been fully tested) offers all sorts of aftermarket sales possibilities for not just the refrigerant, but conversion kits for "do-it-yourselfers." "And it is a chance for us to help the environment. It is a win-win opportunity," he says.
Stephen Barlas has been a full-time freelance Washington editor since 1981, reporting for trade, professional magazines and newspapers on regulatory agency, congressional and White House actions and issues. He also writes a column for Automotive Engineering, the monthly publication for the Society of Automotive Engineers.
