The state of California has made a lot of noise about their attempts to regulate emissions of carbon dioxide from cars and effectively increase fuel efficiency requirements. Big carmakers have been fighting the rules because they want a single national standard to deal with. However, there may be another reason that they don't like the California regs that could be even more important. The rules only apply to manufacturers that sell an average of over 60,000 vehicles annually for three years. That means that only the three domestics, Toyota, Nissan and Honda would be affected. Companies like VW, Hyundai, Mercedes and others would only have to meet the federal requirements. That exemption goes through 2016 but even after that time the rules are vague about what happens.

While it makes sense to offer some exemptions to low volume automakers like Ferrari and Lotus, the federal threshold of 10,000 sales makes more sense than 60,000 in California alone. Leaving a hole like that just provides a means for companies that come in just below the limit to game the system by withholding certain models for sale in the state. Then there is the issue of all the other states that want to follow California's lead. Will they set different thresholds or exempt manufacturers based on their sales in California? Given that markets are not uniform across the country, this could get very messy, very quickly. Consumers in certain states might be able to by certain models that neighboring states could not. If Congress wants to support California's standards, they should just adopt it as a federal standard instead of grandstanding by passing legislation forcing the EPA to grant a waiver to the state.

[Source: Detroit Free Press]

Ford's President of the Americas, Mark Fields, wants the company to build more E85 capable flex-fuel vehicles but he doesn't want to have to deal with state level fuel economy or carbon dioxide regulations. The former should be no surprise as every car and truck so equipped gets a credit of 1.2mpg towards its mileage rating. Fields also wants to see mileage mandates done at a national rather than at the state level. Like other car-makers, Ford's issue is apparently not so much with having to meet whatever mandate is enacted. They just don't want to do the paperwork and testing repeatedly for potentially dozens of states. Fields hasn't said where Ford stands relative to meeting the new CAFE rules but it's a safe bet that new Ford products will probably be coming with wider tracks and longer wheelbases to increase their footprint. As a result they will have a lower mileage standard to meet. Ford's upcoming EcoBoost engines will also be getting flex-fuel capability to help meet the new rules.

[Source: Ward's Auto World]

Automotive News says that despite a request from the auto industry, U.S. District Judge William Sessions of Vermont ruled last week that he is unwilling to allow automakers the chance to present evidence of greenhouse gas emissions in a non-public way during an upcoming trial. Sessions told AN that he is "'troubled by the implication' that he should decide a case that automakers agree is important to the public by using evidence 'they do not want the public to see.'"

The car companies say their evidence needs to be shown in private to protect business secrets and "future product plans." If you're hoping for revealing hints on this front, then Sessions is on your side.

The Burlington Free Press says Sessions reaffirmed his open stance yesterday. Three Vermont auto dealerships, DaimlerChrysler Corp., General Motors Corp. and two trade groups originally brought the lawasuit, which is about whether states or the federal government has the right to regulate emissions. The auto industry says it's up to the feds. Vermont, New York and other groups say the states can make their own rules. The debate was stirred up by California's CO2 limits, about which more below.

The trial was supposed to start last week, but questions over the secrecy of the evidence pushed the start date back to April 9. We'll be watching.

Related:

• California wants to settle green house gas lawsuit
• Supreme Court may punt on greenhouse gas regulation case
• Supreme court to hear arguments on EPA regulation of CO2

[Source: Automotive News (subs req'd) and the Burlington Free Press]