MEMA Testifies that Changing CAFE Standards will Cause Job Losses at Hearing in Fresno

The Motor & Equipment Manufacturers Association (MEMA) testified before the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) Sept. 24 as part of the response to the Notice of Proposed Rulemaking on light vehicle fuel economy and greenhouse gas emissions (GHG) standards, known as the Safer Fuel-Efficient Vehicles Rule for Model Years 21-26 for Passenger Cars and Light Trucks.

“MEMA supports a One National Program negotiated with California. MEMA supports California retaining its 2013 waiver at this time. We request a continued focus by the Administration on negotiating with California a nation-wide solution and a unified program that all three agencies can agree upon. The revocation of California’s waiver could derail discussions and initiate a legal battle, the ramifications of which will have damaging effects on industry’s ability to invest and plan for the future,” said Laurie Holmes, MEMA Senior Director of Environmental Policy during the testimony. “MEMA urges the agencies to establish continued year-over-year increases to the standards. MEMA opposes the agencies’ proposal to eliminate progress in the Corporate Average Fuel Efficiency (CAFE) and the greenhouse gas (GHG) vehicle emissions standards for light vehicles starting in 2021 extending until 2026.”

“Eliminating progress in the standards would have a detrimental economic impact on suppliers – including an effect on U.S. supplier manufacturing jobs as well as stranding significant technology investments,” she continued. “In response to the targets set for MYs 2017 – 2021 and the augural standards for MYs 2022 – 2025, suppliers have invested significant resources and made long-term planning decisions committing to developing the necessary technologies and materials for their customers. Employment in manufacturing of new original equipment has grown nearly 23 percent since 2012, in part because of these investments.”

Holmes cited recent research that shows that zero percent increases year-on-year through 2026 would result in a loss of 67,000 direct auto industry jobs with a full impact of 500,000 direct, indirect, and induced jobs by 2025.

“We will lose these jobs to other markets, including China. In order to preserve supplier jobs and investments, MEMA supports continued year-over-year increases to the standards,” she said.

The entire testimony can be found here. MEMA will submit comprehensive written comments in October.