Year in Review: Trump administration tees off on CAFE standards

President Trump's administration took a look at President Obama's corporate average fuel economy standards and, clearly, didn't like what it saw.

The administration proposed to freeze CAFE standards at the 2020 level of 37 miles per gallon, down significantly from the agreement to scale up CAFE standards to an estimated 46.8 mpg by 2025 model year vehicles.

Waves of opponents—including state and local governments, safety consumer, energy, conservation and environmental groups—have come out against this proposal and are mobilizing to stop the administration from rolling back the 2010 deal under President Obama that brought clarity to the industry.

Most notably, the agreement aligned the U.S. rules with California's, paving the way for auto makers and suppliers to make investments with a significant degree of certainty. That clarity is eroding away now that automotive stakeholders are not sure whether or not the 2010 pact will be honored by the Trump administration.

California has the authority to set its own low-emission vehicle standards under the Clear Air Act, and did so in 1990. Other states can follow California's lead in lieu of federal standards, but cannot exceed them. Trump also is proposing to rescind California's power to follow its own path on clean cars.

The federal EPA and NHTSA are expected to publish a final rule next year after reviewing thousands of public comments and as many as 18 states are expected to immediately challenge any final rule in line with Trump's proposal.

So far 13 states are establishing low-emission vehicle standards based on those in California. With Trump going one way, and a significant block of states going another, auto makers and suppliers will have to wade through a lengthy review and challenge process before clarity is restored.

Stretching too far

Rubber bands were a hot topic in 2018.

Alliance Rubber Co., the Hot Springs, Ark., producer of rubber bands, petitioned the International Trade Commission to establish antidumping and countervailing duties against rubber band imports from China and Thailand.

The Department of Commerce made its final determinations on antidumping and countervailing duties for rubber bands imported from China in November.

Alliance petitioned the ITC in January under Sections 701 and 731 of the Trade Act. In its petition, Alliance accused China, Thailand and Sri Lanka of selling their rubber bands in the U.S. at less than fair value and subsidizing their rubber band producers.

The ITC discontinued the investigation of Sri Lankan rubber band producers in March, but voted to continue its investigation of Chinese and Thai producers.

The ITC is scheduled to make its final determination on Chinese rubber band imports Dec. 28 and on Thai imports March 4, according to a Commerce Department fact sheet.

Safety first

The Occupational Safety and Health Administration had another busy year. A couple of companies cited for safety violations included:

• OSHA's Oregon branch is investigating a fatal accident at Corvallis, Ore.-based Oregon Rubber Mills, which occurred on Aug. 23. Details on the investigation are developing as both sides did not comment further, but confirmed the worker was in his mid-20s.

• Sperry & Rice L.L.C. received potential penalties of $400,175 for 44 alleged health and safety violations at its Killbuck, Ohio, plant.

• A worker injury from August 2017 at HP Pelzer Systems Automotive Inc.'s Thompson, Ga., site netted the firm proposed penalties of $129,336 in January. This is the third time OSHA has cited the Thompson facility for safety violations. Incidents in 2014 and 2016 brought a combined $1 million in penalties.

• Goodyear's Social Circle, Ga., site was cited seven times, totaling $69,058 in fines on Jan. 19.

Labor peace continues

It wasn't quite as exciting of a year as 2017 on the labor front, but 2018 did produce some significant developments for the United Steelworkers.

USW Local 1023, which covers workers at Yokohama's Salem, Va., manufacturing plant, and Yokohama Tire Manufacturing Virginia L.L.C. reached and ratified a four-year labor agreement in the fall. The final tally and details were not released, but the deal passed by a "majority" vote and runs through Sept. 14, 2022. The pact covers about 600 bargaining unit employees with the plant employing about 760.

On a regulatory front, two Ohio Republican state representatives pitched six "right-to-work" amendments to the Ohio Constitution that are set to be included for vote on the 2020 ballot. The USW came out against the proposed legislation.

Moving forward

A number of recycling initiatives saw progress in 2018, especially on the asphalt side.

Dry process crumb rubber modified asphalt may be the way forward for the rubberized asphalt industry to become a viable recycling technology, according to speakers at the 2018 Clemson University Global Tire Industry Conference in April.

They cautioned, however, that while the window of opportunity is open, it won't stay there for long.

In August, John Sheerin of the U.S. Tire Manufacturers Association said rubber-modified asphalt's path hasn't been straightforward, but stressed that it remains a key growth area for tire recycling.

Also at Clemson, recyclers disclosed new initiatives making it easier for recyclers to manage off-the-road tires.

California almost got a new tire recycling program passed into law. The California Assembly passed a bill in the fall to create a new state program that creates a 75 percent recycling target for scrap tires, but the measure ultimately was vetoed by Gov. Jerry Brown.