Washington, DC - Congressman John D. Dingell (D-MI15) sent the following letter to Environmental Protection Agency (EPA) Administrator Lisa Jackson and Secretary of Transportation Ray LaHood on a proposed rule change that would exempt certain auto manufacturers from federal greenhouse gas emission standards. The proposed rule would give some companies based outside the U.S., including BMW AG and Daimler AG, a distinct advantage over already-struggling American manufacturers. Congressman Dingell believes that American automakers should be able to compete on a level playing field with their foreign counterparts and that federal regulations should not disadvantage American companies. The text of the letter is below:
The Honorable Lisa Jackson
Administrator
U.S. Environmental Protection Agency
Ariel Rios Building
1200 Pennsylvania Avenue, N.W.
Washington, D.C. 20460
The Honorable Ray LaHood
Secretary
U.S. Department of Transportation
1200 New Jersey Ave., S.E.
Washington, D.C. 20590
Dear Administrator Jackson and Secretary LaHood:
On July 28, 2009, The Wall Street Journal reported that the Environmental Protection Agency (EPA) and the Department of Transportation (DOT) will formally propose a rule to exempt from greenhouse gas emission standards certain automobile manufacturers that sell fewer than 400,000 vehicles annually in the United States. (See enclosed article.) This troubling development gives rise to a number of questions, not the least of which relates to your agencies’ statutory ability to make such an exemption.
I am particularly concerned with the manner in which this proposed exemption will be granted, as well as the potential effect it may have on the environment and federal revenues. Moreover, the granting of such an exemption strikes me as providing qualifying manufacturers with a distinct competitive advantage over their competitors, which are bound by law to comply with federal emissions standards. As a matter of principle, I believe all manufacturers that sell vehicles in the United States should be subject to uniform and universally applied regulation. In view of these concerns, I would appreciate your candid responses to the following questions:
1. What is your agencies’ specific authority for exempting from federal emissions standards automobile manufacturers producing fewer than 400,000 vehicles per year? Please cite applicable statute.
2. To what types of vehicles will the proposed rule apply (i.e., passenger vehicles, light-duty trucks, heavy-duty trucks, etc.)?
3. Under the proposed rule, what will be the particular levels of emissions allowed for each of the manufacturers exempted and for each of the vehicle models they sell in the United States?
4. Will this rule address only the requirements of the Clean Air Act, or will it encompass greenhouse gas emissions, such as carbon dioxide?
5. What will be the environmental consequences of this action? Please be specific with regard to sources of pollution, types of emissions, and categories of pollutants.
6. What impact will this exemption have on areas of the country currently not in compliance with the Clean Air Act? Moreover, what areas and how many areas of the country will find their status changed under the Clean Air Act? Additionally, please list the areas that will find their status under the Clean Air Act changed to different categories of air quality or non-compliance by reason of this exemption. Lastly, please list the areas adjacent to areas affected by this exemption, as well as what impact the exemption will have on them.
7. Have National Environmental Policy Act (NEPA) environmental impact statements been submitted according to law? Please provide an explanation as to why or why not.
8. Has notice of the proposed exemption been given in accord with the Administrative Procedure Act (APA)? If so, please provide a copy of the notice as it appeared in the Federal Register. Further, what records are being kept by your agencies in accordance with APA?
9. Has opportunity for comment been given in accord with APA? Have comments been received by your agencies? If so, from whom have they been received?
10. Have there been or will there be public hearings under APA on the proposed exemption? If so, when did these hearing occur or when will they occur? If not, please provide an explanation as to why, citing specific authority for not holding such hearings.
11. Please list the automotive manufacturers that will be exempted from emissions standards under this proposed rule by name. Please also indicate the number of vehicles these companies produced (both in and outside the United States) and sold the in United States during the past five years.
12. Will any U.S. automotive manufacturers be exempted from compliance with emissions standards under this proposed rule? If so, please list the names of these companies, as well as the number vehicles they produced and sold in the United States during the past five years.
13. Have your agencies conducted a study of the economic impact of the proposed rule on manufacturers that will be exempt from federal emissions standards? If so, please submit this information. If not, please explain why no such study has been undertaken.
14. Similarly, have your agencies conducted a study of the economic impact of the proposed rule on U.S. automotive manufacturers? If so, please submit this information, including the rule’s competitive effect on U.S. automotive manufacturers by manufacturer in revenue and sales losses. If not, please explain why no such study has been undertaken.
15. What will be the impact of the proposed rule on federal revenues, including the amount of taxes not collected from vehicle manufacturers and reductions in taxable vehicles sold? Have your agencies conducted a study on the proposed rule’s impact on federal revenues? If so, please submit it. If not, please explain why no such study has been undertaken.
16. Do your agencies plan to expand the proposed exemption in the future? Please provide an explanation as to why or why not.
Please provide your responses to my office by no later than the close of business on August 15, 2009. Thank you for your kind attention to this matter. Should you have any questions, please feel free to contact me directly or have your respective staff contact Katie Murtha in my office at 202-225-4071.
With every good wish,
Sincerely yours,
John D. Dingell
Member of Congress
cc: The Honorable Henry A. Waxman, Chairman, Committee on Energy and Commerce; The Honorable Joe L. Barton, Ranking Member, Committee on Energy and Commerce; The Honorable Edward J. Markey, Chairman, Committee on Energy and Commerce, Subcommittee on Energy and the Environment; The Honorable Fred Upton, Ranking Member, Committee on Energy and Commerce, Subcommittee on Energy and the Environment
