Trump administration halts car talks with California
US president Donald Trump's administration has put the brakes on talks with California over the future of fuel economy and CO2 standards for new cars, likely setting the stage for a legal fight over the state's ability to enforce its own regulations.
The White House today said administration officials decided to discontinue the negotiations with the California Air Resources Board (ARB), blaming the agency for failing to "put forward a productive alternative" to a proposal by the US Environmental Protection Agency and Department of Transportation that would freeze federal standards in 2020-26.
"Accordingly, the administration is moving forward to finalize a rule later this year with the goal of promoting safer, cleaner, and more affordable vehicles," the White House said.
California officials, who have previously questioned the administration's seriousness in holding the talks, for their part accused the White House of "abandoning ship" on efforts to address climate change and predicted the two will wind up in court. The state, along with 16 others, is already challenging EPA's decision to revisit the standards in the first place.
"California and states throughout America are prepared to defend our national clean car standards even if the Trump administration intends to go AWOL," California attorney general Xavier Becerra (D) said.
The end of the discussions comes the Trump administration works to complete changes to the standards by the end of March, to provide time for automakers to adjust cars and trucks they will sell in model year 2021. The ARB played a lead role in developing the existing vehicle efficiency and emissions standards, which were adopted by the Environmental Protection Agency (EPA) under former president Barack Obama and would require new cars and trucks to achieve a projected fuel-economy of 46.7 miles/USG by 2025.
The Trump administration last year proposed to freeze fuel-economy standards starting next year at 37 miles/USG through 2026, which it expects will increase fuel consumption by 500,000 b/d. But some lawmakers say EPA and the Department of Transportation may wind up with a regulation that leads to a 0.5pc/yr increase in the standards.
EPA is also proposing to withdraw a Clean Air Act wavier for California. The law allows California to set its own vehicle emissions standards, subject to such a waiver, which other states can then use. To date, 13 states have adopted the California standards.
Automakers, fearful of having to produce cars and trucks that meet two separate standards, had supported the federal-state talks as a way to keep costs down.
"We encourage everyone to keep focusing on how we get there, because this is in the best interests of all parties, including consumers," the Alliance of Automobile Manufacturers said.
ARB has said the federal proposal would severely undermine the state's ability to meet its mandate to cut GHG emissions 40pc from 1990 levels by 2030. The transportation sector accounts for 41pc of the state's emissions, with most of that coming from passenger vehicles.
Related news posts
US trucking index at 18-month high in August: ATA
US trucking index at 18-month high in August: ATA
Houston, 25 September (Argus) — US trucking freight volumes rose in August to the highest level since February 2023, the American Trucking Association (ATA) said. The ATA's seasonally adjusted Truck Tonnage Index (TTI) rose in August by 1.8pc from a month earlier and by 0.7pc from a year earlier. The index has increased on a monthly and yearly basis only twice in the past 18 months, last doing so in May 2024 . August's "robust gain" indicates freight levels are rebounding from a bottom, according to ATA economist Bob Costello. The TTI's month-to-month movement so far this year also shows the freight market is "at an inflection point," Costello said. The US trucking industry contracted in 2023 and initially got off to a slow start this year. Last week, the Federal Reserve cut its target lending rates for the first time in four years , suggesting the worst inflationary pressures may be over. The TTI is calculated monthly using a survey of ATA membership to estimate seasonally-adjusted trends in the value of US truck freight. Trucking comprises roughly three-quarters of tonnage carried by all modes of transportation in the US, and so can serve as an indicator of the health of the transportation sector and the economy at large. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Vertex Energy files for bankruptcy, seeks sale
Vertex Energy files for bankruptcy, seeks sale
Houston, 25 September (Argus) — Specialty refiner Vertex Energy has filed for chapter 11 bankruptcy in a US court following a failed foray into renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery. Vertex has entered into a restructuring support agreement with its lenders and secured $80mn of new funding to finance its day-to-day business operations, the company said late Tuesday. The refiner is also considering a "more value-maximizing sale transaction" and expects to confirm its chapter 11 bankruptcy plan by the end of the year, according to the 24 September press release. Vertex announced in May this year that it would "pause" renewable diesel production at its Alabama refinery and return the unit to producing fossil fuel products. The company later said it would use a third quarter turnaround to return the Alabama plant's converted hydrocracking unit to processing fossil fuel feedstocks and be back online in the fourth quarter. Vertex also operates a re-refinery near New Orleans, Louisiana, that produces low-sulfur vacuum gas oil (VGO) and multiple used motor oil (UMO) processing plants and collection facilities along the Gulf coast. Refiners have faced mixed fortunes in recent years with their investments in renewable fuels after a glut of new supply flooded markets and depressed renewable credit prices. US independent refiner Delek announced in August that it is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. Chevron said earlier this year it was indefinitely closing two biodiesel plants in Wisconsin and Iowa due to market conditions. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Biden touts climate legacy
Biden touts climate legacy
New York, 25 September (Argus) — US president Joe Biden made the case for his climate legacy on Tuesday, casting the Inflation Reduction Act as part of a "new economic playbook" and warning of environmental and economic repercussions if former president Donald Trump returns to the White House. The 2022 law, which included a raft of tax credits to subsidize clean energy technologies, was the "most significant climate law passed in the history of the world," Biden said in a speech at the Bloomberg Global Business Forum, an event on the sidelines of the UN general assembly and Climate Week NYC. The market for clean energy is "booming" because of the law, Biden said, pointing to investments made after its passage in battery technology, nuclear energy, hydrogen, and what the administration terms "climate-smart agriculture." Most of those benefits are flowing to Republican-led states, he noted. While analysts see some provisions in the law as less vulnerable than others, including tax credits for hydrogen and carbon capture popular among oil and gas companies, Republicans have said they want to repeal much of the law. Trump-era tax cuts are set to expire in 2025, teeing up a major legislative fight over tax policy next year regardless of which party controls the US Congress and the White House. Although Biden argued that his climate policies have already had substantial impacts, he also said that Trump could halt much of that progress. Manufacturing facilities and businesses that have started up because of the law's incentives would "shut down" if it was repealed, he said. The US shifting course on energy policy could also have spillover effects on other countries' climate ambitions, Biden said, pointing to his administration's support for language agreed to at last year's UN Cop 28 climate summit around transitioning away from fossil fuels. "If we didn't lead, who the hell leads? Who fills the vacuum without America leading?" he said. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Container lines to impose US strike surcharges
Container lines to impose US strike surcharges
New York, 24 September (Argus) — Container ship owners Maersk, CMA CGM and Hapag-Lloyd warned their clients that if a looming port strike takes place, they would implement port disruption surcharges for container cargo moving to and from the US east and Gulf coast terminals. If a International Longshoremen's Association (ILA) strike takes place, CMA CGM's surcharge will go into effect on 11 October. The company will charge $1,500 per twenty-foot container unit (TEU) and $3,000 per forty-foot container unit for cargo moving from Latin America and the Caribbean to the US east and Gulf coasts. CMA CGM's surcharge for exports from the US east and Gulf coasts to Latin America and the Caribbean will be $800 per TEU and $1,000 per forty-foot container unit. Hapag-Lloyd's surcharge of $1,000 per TEU will apply from 18 October to all imports to the US east and Gulf coast. Maersk will implement its surcharge on 21 October. It will include $1,500 per TEU, $3,000 per forty-foot container unit and $3,780 per forty-five-foot container unit for cargo moving in and out of US east and Gulf coasts. Its surcharges are subject to regulatory approval for containers departing from China. The company is prioritizing import container movements before disruptions take place and asking its customers to expedite documentation and customs clearance to retrieve cargo promptly. It warns that strike disruptions will affect terminal operators' ability to monitor refrigerated containers and encourages its customers to plan accordingly to avoid the risk of loss to temperature-controlled cargo. The surcharges would cover higher operational costs that will be incurred due to service disruptions, the companies say. They are exploring alternative routing options. A possible strike could cause some of the container ship cargo to be re-routed to US west coast ports, Canada and Mexico, and then transported on rail or truck to the US Gulf and east coasts. The contract between the ILA and the United States Maritime Alliance (USMX) is set to expire on 30 September. The current six-year agreement covers approximately 25,000 port workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. The USMX reiterated its willingness to reenter discussions with the ILA on a new master contract. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more