Dayton Daily News

Oil’s covert campaign to rewrite car emissions rules

- Hiroko Tabuchi ©2018 The New York Times

When the Trump administra­tion laid out a plan this year that would eventually allow cars to emit more pollution, automakers, the obvious winners from the proposal, balked. The changes, they said, went too far even for them.

But it turns out that there was a hidden beneficiar­y of the plan that was pushing for the changes all along: the nation’s oil industry.

In Congress, on Facebook and in statehouse­s nationwide, Marathon Petroleum, the country’s largest refiner, worked with powerful oil-industry groups and a conservati­ve policy network financed by the billionair­e industrial­ist Charles G. Koch to run a stealth campaign to roll back car emissions standards,a New York Times investigat­ion has found.

The campaign’s main argument for significan­tly easing fuel efficiency standards — that the United States is so awash in oil it no longer needs to worry about energy conservati­on — clashed with decades of federal energy and environmen­tal policy.

“With oil scarcity no longer a concern,” Americans should be given a “choice in vehicles that best fit their needs,” read a draft of a letter that Marathon helped to circulate to members of Congress over the summer. Official correspond­ence later sent to regulators by more than a dozen lawmakers included phrases or sentences from the industry talking points, and the Trump administra­tion’s proposed rules incorporat­e similar logic.

The industry had reason to urge the rollback of higher fuel efficiency standards proposed by former President Barack Obama. A quarter of the world’s oil is used to power cars, and less-thirsty vehicles mean lower gasoline sales.

In recent months, Marathon Petroleum also teamed up with the American Legislativ­e Exchange Council, a secretive policy group financed by corporatio­ns as well as the Koch network, to draft legislatio­n for states supporting the industry’s position. Its proposed resolution, dated Sept. 18, describes current fuel-efficiency rules as “a relic of a disproven narrative of resource scarcity” and says “unelected bureaucrat­s” shouldn’t dictate the cars Americans drive.

A separate industry campaign on Facebook, covertly run by an oil-industry lobby representi­ng Exxon Mobil, Chevron, Phillips 66 and other oil giants, urged people to write to regulators to support the rollback.

The Facebook ads linked to a website with a picture of a grinning Obama. It asked, “Would YOU buy a used car from this man?” The site appears to have been so effective that a quarter of the 12,000 public comments received by the Department of Transporta­tion can be traced to the petition, according to a Times analysis.

Gary R. Heminger, Marathon’s chairman and chief executive, said in a statement that the company supported “sound fuel economy standards” and wanted to “help ensure they are achievable and based on existing technology.”

He added, “We appreciate the administra­tion’s willingnes­s to conduct a thorough review in order to ensure future standards are achievable and will actually benefit American consumers.”

A spokesman for Koch Industries, the energy conglomera­te led by Koch, said the company had “a long, consistent track record of opposing all forms of corporate welfare, including all subsidies, mandates and other handouts that rig the system.”

The oil industry’s campaign, the details of which have not been previously reported, illuminate­s why the rollbacks have gone further than the more modest changes automakers originally lobbied for.

The standards that the administra­tion seeks to weaken required automakers to roughly double the fuel economy of new cars, SUVs and pickup trucks by 2025. Instead, the Trump plan would freeze the standards at 2020 levels. Carmakers, for their part, had sought more flexibilit­y in meeting the original 2025 standards, not a categorica­l rollback.

The plan, if finalized, would increase greenhouse gas emissions in the United States by more than the amount many midsize countries put out in a year and reverse a major effort by the Obama administra­tion to fight climate change.

The energy industry’s efforts also help explain the Trump administra­tion’s confrontat­ional stance toward California, which, under federal law, has a unique authority to write its own clean-air rules and to mandate more zero-emissions vehicles.

California has pledged to stick to the stricter standards, together with 13 other states that follow its lead. But President Donald Trump’s plan challenges California’s rule-writing power, setting up a legal battle that threatens to split the U.S. auto market in two.

That is a prospect automakers desperatel­y want to avoid.

But for gasoline producers like Marathon, a shift toward more efficient vehicles poses a grave threat to the bottom line. In October, the company acquired a rival, Andeavor, making it the biggest U.S. refiner, with sales of 16 billion gallons of fuel a year.

Even while doubling down on gasoline, Marathon has projected an environmen­tally friendly public image. “We have invested billions of dollars to make our operations more energy efficient,” Marathon said in a recent report. The company’s Twitter account recently highlighte­d a gardening project and the creation of a duck pond at one of its refineries.

On a conference call with investors last week, Heminger, the Marathon chief executive, was already counting the extra barrels of fuel a Trump rollback would mean for the industry: 350,000 to 400,000 barrels of gasoline per day, he said.

“However, you have another side who doesn’t want to pivot away” from the stricter rules, Heminger said. “So we have a lot of work to do to keep this momentum going.”

Sen. Tom Carper of Delaware, the top Democrat on the Senate Environmen­t and Public Works Committee, criticized the industry’s campaign. “It appears as though oil interests are cynically trying to gin up support in Congress for the weakest possible standards to ensure that cars and SUVs have to rely on even more oil,” he said.

“If this attempt is successful, the outcome will be a blow to the auto industry, consumers, and our environmen­t.”

House bill 1593 is just eight words long: “To repeal the corporate average fuel economy standards.” Koch Industries, a petroleum empire with interests as diverse as gasoline, pipelines, fertilizer and Stainmaste­r carpets, is the bill’s sole corporate backer.

The measure, which would eliminate fuel standards altogether, is not expected to go far. But it underscore­s the company’s stance on the matter.

On Aug. 6, a Marathon lobbyist, Stephen D. Higley, emailed a Wisconsin state representa­tive an explainer of U.S. fuel economy law. The memo didn’t mince words.

“It’s a relic,” the memo said, particular­ly at a time when the United States was “poised to become the largest oil producer in the world.”

The Wisconsin representa­tive, Mike Kuglitsch, participat­es in the American Legislativ­e Exchange Council, a Koch-funded group that helps companies write model legislatio­n for state lawmakers to use as a basis for their own laws.

Emails obtained by the Times show that Marathon has been working with members of the legislativ­e exchange council to build support for the Trump fuel-efficiency rollback in state legislatur­es and to denounce California’s power to write its own rules for cars.

 ?? ERIN KIRKLAND/THE NEW YORK TIMES AP 2015 ?? Marathon Petroleum worked with powerful oil-industry groups and a conservati­ve policy network to run a campaign to roll back car emissions standards, an investigat­ion found. Volkswagen had to spend more than $15 billion to settle consumer lawsuits and government allegation­s that it cheated on emissions tests. The settlement was revealed June 28, 2016, by a U.S. District Court.
ERIN KIRKLAND/THE NEW YORK TIMES AP 2015 Marathon Petroleum worked with powerful oil-industry groups and a conservati­ve policy network to run a campaign to roll back car emissions standards, an investigat­ion found. Volkswagen had to spend more than $15 billion to settle consumer lawsuits and government allegation­s that it cheated on emissions tests. The settlement was revealed June 28, 2016, by a U.S. District Court.

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