http://www.planetark.org/dailynewsstory.cfm/newsid/14512/story.htm Planet Ark : US Senate panel can't reach deal on fuel standards
USA: February 14, 2002 WASHINGTON - Democratic lawmakers will include in a Senate energy bill a big boost in the fuel efficiency of gas-guzzling sport utility vehicles after they failed to reach a deal with Republicans on higher mileage standards, a congressional staffer told Reuters this week. The fuel standards are expected to be one of the most contentious issues in a broad energy bill promoting U.S. oil, natural gas, coal and nuclear production that the Senate is scheduled to begin debating on Thursday. The Democratic plan would close the federal loophole that allows sport utility vehicles (SUVs) to get lower gasoline mileage than cars. The legislation also aims to cut dependence on foreign oil by requiring the U.S. vehicle fleet to average 35 miles per gallon by 2013, up from the current 24 mpg. The U.S. auto industry opposes the stricter fuel standards, saying that would mean building lighter vehicles which are less safe in accidents. Senate Commerce Committee chairman Ernest Hollings and panel member John Kerry, both Democrats, are pushing for higher fuel requirements. Their plan is tougher than the one offered by Republican Sen. John McCain of Arizona. McCain also wants to close the SUV loophole, but would give automakers three more years to reach a slightly higher U.S. fleet average of 36 mpg. However, the two factions on the Commerce Committee could not reach a deal in negotiations this week, a congressional aide said. As a result, the Democratic plan will go directly to the Senate floor as part of a comprehensive energy bill. DEMOCRATS FAVOR INCREASE The Corporate Average Fuel Economy (CAFE) standards first enacted by Congress in the mid-1970s currently require passenger cars to average 27.5 mpg. Sport utility vehicles, along with mini-vans and other vehicles in the "light truck" category, need only get 20.7 mpg. The Democratic plan would slowly increase the fuel efficiency of both cars and light trucks. The standards would rise to 33.2 mpg for cars and 26.2 mpg for light trucks by 2010, and then jump to 38.3 mpg for cars and 32 mpg for light trucks by 2013. The legislation would combine the passenger car and light truck categories beginning with the 2010 model year. However, heavy-duty pickup trucks would not be included. Light trucks were allowed to have lower mileage when Congress passed the CAFE law in the mid-1970s because they were used by farmers and small businesses at the time. Now, SUVs and other light trucks account for half of U.S. vehicle sales. Sen. Kerry said raising the fuel standard as called for under the Democratic plan would save 2.6 million barrels of gasoline a day by 2020. Gasoline demand accounts for 45 percent of the 19.8 million barrels of oil that is consumed daily in the American market. Half of that oil is imported. TAX CREDITS PLANNED Meanwhile, the Senate Finance Committee is set to approve on Wednesday afternoon a package of energy tax credits and incentives worth about $18 billion. The package includes a tax credit to help keep small oil and natural gas wells pumping when energy prices slump, according to a draft copy of the plan. Small, independent owners of so-called "marginal wells" would receive a $3 per oil barrel tax credit when the price falls below $18 a barrel. They would also get a 50-cent tax credit for each 1,000 cubic feet of natural production when gas falls under $2 per thousand cubic feet. Lawmakers from oil states say the tax credit is needed because the tens of thousands of marginal wells - each of which produces just a few barrels per day - collectively account for 20 percent of domestic oil output. The tax package would also allow small refiners to claim an immediate deduction of up to 75 percent of the costs they incur to comply with new federal environmental regulations to reduce the amount of sulfur in gasoline. The Republican-led House last autumn approved a broad energy bill to encourage more domestic production of oil, natural gas, coal and nuclear power with $34 billion in tax breaks, incentives and credits. Story by Tom Doggett REUTERS NEWS SERVICE ------------------------ Yahoo! Groups Sponsor ---------------------~--> Get your FREE credit report with a FREE CreditCheck Monitoring Service trial http://us.click.yahoo.com/ACHqaB/bQ8CAA/ySSFAA/9bTolB/TM ---------------------------------------------------------------------~-> Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://www.webconx.com/2000/biofuel/biofuel.htm To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
