Trump open to negotiations with Calif. on auto gas mileage

WASHINGTON — Addressing a key concern for manufacturers, President Donald Trump instructed his administration to explore negotiations with California on achieving a single fuel economy standard for the nation during a meeting with auto industry executives Friday.

The president met with top auto executives to discuss the standards and tasked Transportation Secretary Elaine Chao and Environmental Protection Agency Administrator Scott Pruitt to handle the talks with California officials, according to two people briefed on the meeting. The people spoke on condition of anonymity to describe the private discussions.

The auto industry wants to relax the federal fuel economy standards, but not so much that they provoke a legal fight with California, which has power to impose its own stricter tailpipe pollution limits. Such a fight could create two different mileage standards in the U.S., forcing automakers to engineer and produce two versions of each of their vehicle models and driving up costs.

A Trump administration official said the two agencies have had meetings and discussions with California officials on the issue for several months.

Two auto industry trade groups confirmed in a statement that Trump was willing to talk with California, but they provided no specifics. The Alliance for Automotive Manufacturers and Global Automakers said they appreciated Trump's "openness to a discussion with California on an expedited basis."

During the meeting, one executive brought up how it would be better for the industry to have one standard instead of two, and Trump instructed Pruitt and Chao to go to California for talks, the people said.

White House press secretary Sarah Huckabee Sanders said the president and the automakers discussed "how best to move forward" on the fuel economy standards.

The EPA under Trump has proposed freezing the standards at 2020 levels for the next five years, according to a draft of the proposal obtained by Sen. Tom Carper, D-del. Under the proposal, the fleet of new vehicles would have to average roughly 30 miles per gallon in realworld driving, and that wouldn't change through at least 2025.

The EPA under Obama proposed standards that gradually would become tougher during that period, rising to 36 mpg in 2025, 10 mpg higher than the current requirement. California and automakers agreed to the rules in 2012, setting a single national fuel economy standard.