This legislation will apparently set up a program run by the Department of Energy to competitively award up to $1 billion each to EV-friendly regions that apply for the funds and promise to use them to subsidize consumer purchases of electric cars – to the tune of $2,000 each for up to 100,000 vehicles in each region – and to foster installation of community networks of home and commercial EV chargers.

This program is in addition to the $7,500 federal refundable income tax credit for the purchase of highway legal electric drive vehicles.  Both GM and Nissan are depending on the rebate to help defray the high initial purchase price of their respective plug-in vehicles, the Volt and Leaf.

Other countries have already adopted this type of legislation and it is important both for energy security and international competitiveness that the United States do the same.  This legislation is a by-partisan effort so hopefully it will not fall prey to Republican “anti-legislative progress of any kind” politics.

 President Obama recently announced a national standard mirroring California’s effort to cut global warming emissions from tailpipes 30 percent by 2016.  That standard will be in effect for the model years 2012-2016, during which time California and the other states shall defer to the national standard.Granting the waiver will allow California and the other states to move forward with standards for the model years 2009-2016.

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EPA Administrator Lisa P. Jackson made the following announcement:

This decision puts the law and science first. After review of the scientific findings, and another comprehensive round of public engagement, I have decided this is the appropriate course under the law. This waiver is consistent with the Clean Air Act as it’s been used for the last 40 years and supports the prerogatives of the 13 states and the District of Columbia who have opted to follow California’s lead. More importantly, this decision reinforces the historic agreement on nationwide emissions standards developed by a broad coalition of industry, government and environmental stakeholders earlier this year.

The first California waiver request was made in December 2005 and was subsequently denied in March 2008. This previous decision was based on an interpretation of the Clean Air Act finding that California did not have a need for its greenhouse gas emission standards to meet “compelling and extraordinary conditions.”

Shortly after taking office in January, President Barack Obama directed EPA to assess the appropriateness of denying the waiver. EPA received a letter from California on January 21, 2009, raising several issues for Administrator Jackson to review regarding the denial.

Carl Pope, Sierra Club Executive Directormade the following resonse to todays announcement by the EPA:

President Obamaand Administrator Jackson see the Big Picture when it comes to getting America running on clean energy.  California’s landmark effort to slash the global warming pollution coming from our cars, trucks, and SUVs is the cornerstone of the administration’s ambitious, yet achievable national plan for clean cars.  Today’s decision will ensure that clean and fuel efficient autos of tomorrow are made right here in America, slash our dependence on oil, and tackle global warming.  That is why this plan, a testament to the president’s leadership, is supported by the auto industry, scientists, and environmentalists alike.

Allowing California and the other states to move forward is a decision that is consistent with the law, consistent with science, and consistent with strong economic growth.  It further underscores the commitment of this administration and this EPA administrator to put science and the rule of law first–even when it comes to politically sensitive decisions.

California has once again shown itself to be a laboratory for national environmental and energy policy, as President Obama himself has often remarked.  It has blazed a trail in the policy arena, while also growing its economy over the last several decades–even as it has implemented the nation’s most protective environmental standards. 
We take today’s announcement as yet another sign that the Obama administration is moving aggressively to seize the reins and lead again when it comes to the clean energy policies that will create millions of new jobs, rebuild the manufacturing sector and American middle class, and tackle our dangerous dependence on oil.  We hope that our leaders in Washington will continue to follow California’s lead as they craft a comprehensive clean energy and climate plan.

Millions of Americans are clamoring for clean energy and clean cars.  On their behalf, we thank the Obama administration for this important decision.

Last month, President Obama announced a first-ever national policy aimed at both increasing fuel economy and reducing greenhouse gas pollution for all new cars and trucks sold in the United States. The new standards would cover model years 2012-2016. When the national program takes effect, California has committed to allowing automakers who show compliance with the national program to also be deemed in compliance with state requirements.

With the decision to grant the California waiver, EPA returns to its traditional legal interpretation of the Clean Air Act that has been applied consistently during the past 40 years. EPA finds that California continues to have a need for its motor vehicle emissions program, including the greenhouse gas standards. EPA also finds that the California program meets legal requirements regarding the protectiveness of public health and welfare as well as technological feasibility. The EPA based its decision on an extensive record of scientific and technical evidence. As part of the reconsideration, EPA revisited the prior decision documents and record. The agency also opened a new comment period, including public hearings.

The Clean Air Act gives EPA the authority to allow California to adopt its own emission standards for new motor vehicles due to the seriousness of the state’s air pollution challenges. There is a long-standing history of EPA granting waivers to the state of California.

Information, including decision documents: http://www.epa.gov/otaq/climate/ca-waiver.htm