California will sue within three weeks over EPA waiver decision

Washington (Platts)--20Dec2007

California will sue the US government within three weeks over the
Environmental Protection Agency's refusal to allow the state to control
greenhouse gas emissions from motor vehicles, Governor Arnold Schwarzenegger
reiterated Thursday.

The state announced its intent to sue within minutes of EPA's
announcement Wednesday.

"We will sue to overturn this ruling as quickly as possible,"
Schwarzenegger said. "I have no doubt that we will prevail because the law,
science and the public's demand for leadership are on our side."

EPA announced that it would not grant California's request for a waiver
to control motor vehicle carbon dioxide and other greenhouse gases, citing
provisions in energy legislation signed into law earlier Wednesday requiring
a nationwide fuel economy standard of 35 miles/gal by 2020.

The energy bill "brings a much needed national approach," EPA
Administrator Stephen Johnson said, adding the bill "improves vehicle economy
standards and increases US supplies of alternative fuels" and will achieve
"significant reductions in greenhouse gas emissions."

"I believe this is a better approach than if individual states act
alone," he said.

Because of California's unique air quality problems, it is entitled to
exceed federal regulations controlling air pollutants, but needs waivers from
the EPA to do so. EPA doesn't consider carbon dioxide an air pollutant and
doesn't regulate it.

Other states are entitled to adopt California regulations, and some 17
states have adopted, or plan to adopt, California's proposed greenhouse gas
controls.

California projects it would reduce greenhouse gas emissions from motor
vehicles by 30% by 2016. Increasing automotive fuel economy standards is one
option for doing so.

--Gerald Karey, gerry_karey@platts.com