Mirroring California’s standards, the Obama Administration took a huge step toward regulating carbon emissions by issuing the Final Rule for Green House Gas (GHG) emissions, in addition to tail pipe emissions for automobiles and light trucks, that will impact a wide variety of commercial and industry sectors throughout the U.S.

On March 29, 2010, the EPA formally announced its Phase-In of the Clean Air Act for Green House Gases which increase requirements and reporting. And just one month earlier, the EPA issued its Final Rule for reduction of air toxins from stationary diesel emissions spanning a wide variance of commercial sectors. In conjunction, new tailpipe guidelines, jointly written by the Transportation Department and the Environmental Protection Agency, set emissions to mileage standards that would mandate a combined fuel economy average for new cars and light trucks of 35.5 mpg by 2016 – with passenger cars forced to meet a target of 37.8 mpg by 2016 and pickups, sport utility vehicles and minivans required to meet an average of 28.8 mpg.

“California has long been the trendsetter for Green Initiatives”, says Susan Caldwell, Chair of Koletsky Mancini Feldman & Morrow’s Environmental Practice Group. The state has enacted more environmental legislation than any other state in the union over the last five years she added. “It’s not surprising the federal government would look to California for guidance on such matters.”

The rules are expected to reduce carbon dioxide emissions by about 30 percent between 2012 and 2016, choking nearly 1 billion tons of greenhouse gases over the lives of all regulated vehicles. The government estimates that the new rules will cost consumers an estimated $434 extra per vehicle in the 2012 model year and $926 per vehicle by 2016. It has been countered, however, that an additional savings of an (averaged) more than $3,000 in fuel savings over the life of the vehicle due to much-improved gas mileage will be gained.

“Putting more fuel-efficient cars on the road isn’t just the right thing to do for our environment; it’s also a great way for Americans to save a lot of money at the pump.” Transportation Secretary Ray LaHood said.

While lending finality to an epic 30-year battle between regulators and automakers- the rules may also set the battlefield for a much bigger fight over emissions from stationary sources like power plants, steel mill and refineries, experts warn. The California Gubernatorial race in November of this year expects to focus on the costs of California’s own carbon and pollutant emission regulations and repeal. To what degree change can be had in light of Federal Regulation, however, is highly contested.

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