Document 93v8oo41B53q84Mg8Kejqmg4p

To: bollen.brittany@epa.gov[bollen.brittany@epa.gov]; Dravis, Samantha[dravis.samantha@e pa.gov] Cc: Jennifer Thomas[JThomas@autoalliance.org]; Chris Nevers[CNevers@autoalliance.org] From: David Schwietert Sent: Thur 4/27/2017 9:50:20 PM Subject: RE: re: Auto Aiiiance follow up - Administrator Pruitt Meeting AdministratorPruittDeck April 27 2017.pptx And the related charts/slides that were too large to send in one email Dave From: David Schwietert Sent: Thursday, April 27, 2017 5:49 PM To: bollen.brittany@epa.gov; 'dravis.samantha@epw.gov' <dravis.samantha@epw.gov> Cc: Jennifer Thomas <JThomas@autoalliance.org>; Chris Nevers <CNevers@autoalliance.org> Subject: re: Auto Alliance follow up - Administrator Pruitt Meeting Brittany and Samantha, We wanted to pass along an electronic copy of the charts and letter that were raised during today's meeting with Administrator Pruitt. Please let us know if you have any questions - both regarding the Harmonization Petition that was filed jointly with EPA and DOT last June as well as the Mid Term Review for MY 2022 2025 fuel efficiency standards for light-duty vehicles. Note, when the Harmonization petition was filed last June, we requested a direct fine rule to resolve various issues in hopes of addressing those items ahead of the Draft Technical Assessment Report (TAR) that kicked off the Mid Term Review. Soon after our petition was filed, EPA/DOT and CARB released their Draft TAR which now means that the issues outlined in the Harmonization petition would more effectively be addressed via a rulemaking process - or handled administratively via interpretations. Additionally, since 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007854-00001 late 2015 the Alliance has been seeking various Harmonization changes via legislation because certain changes require statutory modification. It's also important to keep in mind that the Harmonization issues relate to near term compliance (prior to MY 2022) due to increasing disparity between CAFE and EPA credit and compliance requirements. Effectively, the concept of One National Program hasn't been realized and it can create instances in which an auto manufacturer can be in compliance with more stringent EPA requirements and still be forced to pay CAFE penalties. We have a host of other examples that we'd be happy to walk you through to underscore the changes that need to be made in keeping with the original 2010 and 2012 agreements that were advertised as "One National Program" for compliance purposes. Thanks, Dave David Schwietert Executive Vice President, Federal Government Relations & Public Policy P: 202-326-5521 I dscliwietert@autoalliance.org iNCE OF AUTOMOBILE MANUFACTURERS treet, NWMain Phone: 202-326-5500 AO 1 O ALLIANCE 20001 Vfain Fax: 202-326-5567 hftps://autoal1iance. org. 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007854-00002 Curious to know how the Auto sector impacts -your slate or district -- Click here. T'o get a better understanding of how America's automobile industry is one of the most powerful engines driving the U.S. economy, click here. 17cv1906 Sierra Club v. EPA 6/22 Production ED 001523 00007854-00003 Board AM, p^ ril 27, i& " 201"7i 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007855-00001 17cv1906 Sierra Club v. EPA 6/22 Production ED 001523 00007855-00002 Percent Change In Vehicle Sales Seven Years of Growth motoric - But ,20 000,000 , 000, <13 3 C 6 000,000 <srr 4.000. 000 . . 2 000 000 0 25% 20% 15% 10% 5% 0% "* 3 /o -10% -15% -20% -25% Year-Ove Sourced and Compiled from Ward's Automotive 17cv1906 Sierra Club v. EPA - 6/22 Production Consecutive Up Years Consecutive Down Years ED 001523 00007855-00003 , 'rice of Gas Way Below Original Projections : ,20 o G- Por-v" : rn*.oG>::G; 80 75 +m_ o Dj 60 55 o 50 Z 45 m A f LJ 0) 40 P-- o r jj w Zi .c3 20 Jan- .Qy-z7Q3 $4.50 $4.00 $3.50 The GAP: In $2010 Dollats AEO 2012 Early Release m$2010 JO i i \ . 2020 $3.76 202b $3 87 $3.00 Gap $2.50 $2.00 AEO 2015 in $2010 $1.50 #^^^^^ ^^ # # --EIA AEO 201? Early Releaxu (FPA/NHTSA Price Assumption tot CAFE) KIA AEO 2015 Reference Case EIA Short Term (rnencjy Outlook Apr 2018 AC 0 rnit, mat at CO A/tiiUOlb Ovtlm.kt Atlfintrtt 1m mllAliun wim Bt S Cnntumer Print Intlet d ; ,v ; Source: EIA 2016 17cv1906 Sierra Club v. EPA - 6/22 Production Dome* iport: ED 001523 00007855-00004 Low Gas $ + Early CAFE = Impact on Consumers What Type of Engine Will Your Next Vehicle Most Likely Be Powered By? >nUo/o/ - ' ` ", : ,y , i,, i i no/ 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007855-00005 Industry Average Annual CAFE {Fuel Economy) Compliance Margin [miles per gallon, mpg] 13 1.2 0.6 Source: NHTSA 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007855-00006 incl Carbon Reduction) Frontloaded 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007855-00007 I > 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007855-00008 AUTO ALLIANCE BMW Group FCA * (A) Mercedes Ben/ MITSUBISHI MOTORS 17cv1906 Sierra Club v. EPA - 6/22 Production ED 001523 00007855-00009