Following the U.S. Supreme Court decision last year that the EPA had jurisdiction to regulate emissions of carbon dioxide, the agency began formulating regulations. By December of 2007, they had a proposal ready to go that would have effectively mandated a 35mpg standard by 2018. That would have put it two years ahead of what was ultimately passed in the energy bill. In January of this year EPA Administrator Stephen Johnson told a Senate committee that the agency would release CO2 standards by March. As you might have guessed, no such thing has happened.
In fact, during hearings before the House Oversight Committee this week, Chairman Henry Waxman (D-CA) revealed that work on the CO2 rules ended last December. While the committee investigated the EPA decision to deny California's request for a waiver allowing them to regulate CO2 emissions, they were told that the work stopped as a result of pressure from the Bush Administration. Waxman has requested a copy of the draft rules which were submitted to the White House, but the EPA hasn't yet decided whether to comply. The decision not to proceed may have been triggered by some legal language from Administrator Johnson. The draft regulation was accompanied by a legal finding that carbon emissions endangered public welfare rather than public health. Without the latter finding there was less of a requirement for new regulations under the current law.

[Source: Detroit News]

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