California's climate-change plan enumerates various energy-saving technologies that could be used to create reductions in CO2 emissions, including everything from aerodynamic drag reduction to improved tires. The plan estimates that it will cost an average of $241 for a light passenger car and $326 for pickups and SUVs to meet the initial standards of 15 to 20 percent. But as the plan phases in, achieving greater reductions will get more costly, jumping to an average of $539 for light duty passenger cars and $851 for heavier vehicles.
Representatives of environmental groups stress that the changes will easily pay for themselves in just a few years through savings at the gas pump -- especially if fuel prices remain high. The Union of Concerned Scientists calculated that a 30 percent reduction of carbon dioxide emissions would improve fuel efficiency so much, that with gas prices at a meager $1.74 a gallon, it would take only three years to pay for the improvements. At last week's average California statewide price for regular gas, $2.26 a gallon, those costs would pay for themselves in about 2.3 years.
The auto industry disputes the figures. "It would add about $2,500 to $7,000 per vehicle," says Shosteck. "Eighty percent of the technologies that are mentioned in the Air Resources Board report are currently available on cars in dealer showrooms, but very few consumers choose those options because they are so expensive."
Jason Mark, the Clean Vehicles Program director at the Union of Concerned Scientists, says the auto industry has a long history of exaggerating the cost to consumers (and industry) of proposed regulations, whether they're seatbelts or airbags aimed at improving safety or catalytic converters that will cut pollution. Costs come down, he notes, when technologies are implemented widely.
"When Detroit sends its lawyers and lobbyists home, and puts its engineers to work, it's found that they can innovate all kinds of new solutions," adds Roland Hwang, senior analyst for the Natural Resources Defense Council.
But Anthony Pratt, a senior manager at J.D. Power and Associates, an industry market research firm, echoes the auto industry's contention that most consumers won't voluntarily shell out up front in the car dealership for features that will improve the fuel efficiency of their new vehicle.
"Would someone be more likely to spend $700 to improve the fuel efficiency or do they want an entertainment center?" asks Pratt. "People start to think in those terms: 'That would be pretty cool, but I could use a DVD player every day.' People tend to favor the creature features."
Automakers aren't ready to file suit to stop California's plan yet, because the details of it won't be finalized for at least a year. But "we're examining all our options," says Shostek.