http://www.planetark.org/dailynewsstory.cfm?newsid=11007
Planet Ark
Environmental groups wary of US fuel economy panel

USA: May 31, 2001

DETROIT - Three major environmental groups have raised doubts about 
the objectivity of a federal panel studying automobile fuel economy 
standards after it hired a consulting firm that has helped automakers 
fight environmental rules.

But the firm denies its work is biased in favor of automakers who 
oppose higher federal fuel economy standards, and says it is willing 
to make all of its work public.

The National Academy of Sciences panel has drawn increasing scrutiny 
after President George W. Bush said earlier this month that the 
administration would use the panel's report as the starting point for 
deliberations about whether to increase fuel economy standards.

The standards of 27.5 miles per gallon for cars and 20.7 miles per 
gallon for pickups, vans and sport utility vehicles have been frozen 
for years by opposition from automakers. The actual average fuel 
economy of new U.S. vehicles has fallen slowly since the 1980s as 
automakers sold more pickups and SUVs.

In a letter dated Tuesday, the groups - the Sierra Club, 
Environmental Defense and the U.S. Public Interest Research Group - 
said they were concerned that the panel has hired Sierra Research, a 
California-based firm, to provide data on the costs of fuel economy 
improvements.

"This firm has a track record of working closely for, and with, the 
auto industry in its effort to block or weaken environmental 
standards," the letter states. "Simply put, utilizing a consulting 
firm so closely tied to the industry in this manner jeopardizes the 
independence of the panel's advice and recommendations."

The groups and other environmentalists have expressed doubts about 
the panel's objectivity since it was formed earlier this year. None 
of the panel's 13 members has the full endorsement of environmental 
groups, while several members have publicly denounced fuel economy 
standards in the past.

A similar effort by an NAS panel in 1992 criticized the government's 
fuel economy standards as "deeply flawed" and argued for a more 
free-market approach. Five of that panel's members also serve on the 
new committee.

"We are concerned that this new academy panel is backtracking on what 
can be done and will come out with a very pessimistic assessment of 
where the technology is and what it will cost," said Daniel Becker, 
the Sierra Club's director of global warming research.

FROM ALL SIDES

Automakers contend higher fuel economy standards would eat into 
already thin profits while doing little to brake growing American 
demand for gasoline. Environmentalists respond that automakers could 
easily raise the average fuel economy of new vehicles by 40 percent 
in a decade at a cost of a few hundred dollars per vehicle.

Sierra Research confirmed it had been retained by the panel but 
denies it has any bias, saying it has worked for companies on all 
sides of the fuel economy debate, including the Sierra Club. Tom 
Austin, a senior partner with the firm, said while it does have a 
relationship with automakers, it also often works for federal and 
state environmental agencies.

"We're not in the pocket of any company or industry," Austin said. 
"We wouldn't have the range of clients we do if we weren't doing 
anything but honest, high-quality technical work."

The letter cites testimony Austin gave in a lawsuit indicating the 
firm gets about 25 percent of its income from automakers. It also 
said Sierra Research "vastly over-estimated" the cost to automakers 
of meeting environmental standards in California.

Austin said the company's estimates in some of those cases were high, 
but in others the estimates were verified by other researchers. And 
he said the company worked with automakers only on cases where they 
agreed on goals, such as opposing California rules requiring 
zero-emission vehicles.

"In cases like that, it doesn't trouble us a bit, because they're not 
wrong," he said. "When they are wrong we don't work for them."

The panel's report, now nearing a final draft stage, is expected to 
be delivered in July. The environmental groups want any Sierra 
Research data and testimony to be made public, and asked for the 
opportunity to respond.

Austin said he had no problem with the request. The National Academy 
of Sciences did not immediately return calls seeking comment.

Story by Justin Hyde

REUTERS NEWS SERVICE


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