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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (66167)	4/11/2018 6:28:52 PM
From: Wharf Rat	Read Replies (1) \| Respond to of 361884

Pretty meaningless, now that Pruitt wants to try to cut CAFE standards. How China Is Raising The Bar With Aggressive New Electric Vehicle Rules The United Kingdom and France have announced that sales of gasoline and diesel vehicles will no longer be allowed in their countries by 2040, and the Indian government has indicated its intention to only allow electric vehicles (EVs) to be sold in India by 2030. However, China raised the bar yet again for automakers when it announced late last month its proposal to implement aggressive new quotas for the production of New Energy Vehicles (NEVs), which include battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and fuel-cell cars. On September 22, China’s Ministry of Industry and Information Technology (MIIT), which oversees the auto industry, proposed for public comment a Temporary Management Regulation for Corporate Average Fuel Consumption (CAFC) and New-Energy Vehicle Credits. The proposal was made in the context of China’s intention to phase out its subsidy program for NEVs in 2021. The combination of credits and dis-incentives in the new proposal are designed to improve the fuel efficiency of traditional-fuel vehicles, as well as to promote the deployment of NEVs in China. China’s proposal would require automakers to produce fleets with a Corporate Average Fuel Economy of 42 miles per gallon by 2020, and 54.5 mpg by 2025, with a goal of generating a market for more than five million new-energy cars in the 2016 to 2020 period. Production quotas under the proposal will be enforced through a credit-score system in which automakers earn super credits for the production of NEVs and energy saving vehicles, defined as conventional-fuel vehicles with fuel efficiency equivalent to 81 miles per gallon. Each auto company will be subject to a specific annual CAFC target, depending on the curb weights and the mix of the vehicles in its fleet. An auto company’s CAFC target and actual CAFC will be calculated by sales-weighting each car model’s specific fuel consumption standard and its actual, certified fuel consumption. The new rules, which were originally expected to be applied in 2018, were pushed out to 2019 in the final version of China’s CAFC/EV proposal. In 2019, according to MIIT, local and foreign automakers that sell 30,000 cars or more annually must earn points equivalent to 10% of the vehicles they produce in China and import into the country, rising to 12% in 2020. NEVs produced in China, but exported to other countries, do not count in the calculation. According to Colin McKerracher, a London-based analyst at Bloomberg New Energy Finance, 12% in 2020 would translate to about 4 to 5% of a company’s actual vehicle sales. Companies that fail to hit their targets will be compelled to purchase credits from companies with excess credits or be subject to MIIT-imposed penalties. If a company cannot purchase enough credits to bring it into compliance, it must submit a production plan that generates enough credits to make up the deficit in the prior year. If a company fails to meet CAFC targets after trying all possible methods, MIIT could deny approval for new models that cannot meet specific fuel consumption standards, and/or suspend the production of certain of the company’s high-fuel-consumption models until the company is in compliance. Companies that do not follow MIIT’s rules could be blacklisted in China.