http://ens-news.com/ens/mar2002/2002L-03-08-06.html
Environment News Service:
Senators Reach Agreement on Fuel Economy

By Cat Lazaroff

WASHINGTON, DC, March 8, 2002 (ENS) - A bipartisan group of Senators 
led by Democrat John Kerry of Massachusetts and Republican John 
McCain of Arizona, agreed Wednesday on a plan to increase the fuel 
efficiency of cars and light trucks sold in the United States. The 
measure, an amendment to the Senate energy bill, is likely to face 
stiff opposition when reviewed by the full Senate next week.

At 40 miles per gallon in highway driving, Saturn's SL sedan is one 
of the most fuel efficient cars on the market (Photo courtesy Saturn)
The agreement would raise corporate average fuel economy (CAFE) 
standards to 36 miles per gallon (mpg) for both passenger cars and 
light trucks. Under the measure, each automaker would have to achieve 
this fuel efficiency, averaged across the company's entire fleet, by 
2015.

Raising CAFE standards from their current level of 27.mpg for cars, 
and 20.7 mpg for light trucks, could save up to one million barrels 
of oil per day- as much as the nation now imports from Iraq and 
Kuwait combined - and cut 240 million tons of carbon dioxide 
pollution per year.

"The Sierra Club applauds this effort to ensure that the Senate 
energy bill saves oil, saves consumers money at the pump, and cuts 
pollution," said Carl Pope, executive director of the Sierra Club. 
"With bipartisan support, and the need to improve energy security, 
there is no responsible reason for senators to oppose this bill."

Senator John McCain has led efforts to increase vehicle fuel 
efficiency. (Photo courtesy Office of the Senator)
America's cars and light trucks now consume eight million barrels of 
oil every day. The average fuel economy of new vehicles sold hit 20.4 
mpg last year, the lowest level since 1980.

The Bush administration's national energy policy strongly emphasizes 
developing new domestic oil reserves, particularly on public lands, 
to help reduce the nation's dependence on foreign oil. Conservation 
groups counter that with just three percent of the world's proven oil 
reserves, the U.S. can not drill its way to oil independence.

"It is heartening to have this agreement," said Pope. "Rather than 
drilling in the pristine Arctic National Wildlife Refuge, we hope the 
Senate will vote to make this reasonable step to reduce our 
dependence on oil."

Increasing CAFE standards could also help cut vehicle pollution 
emissions. Cars and light trucks emit 20 percent of the nation's 
human produced carbon dioxide, the chief heat trapping gas blamed for 
global warming.

Senator John Kerry had proposed boosting CAFE standards by 2013, but 
agreed to a 2015 deadline in a compromise with Senator John McCain. 
(Photo courtesy Office of the Senator)
Senator Kerry had first proposed boosting CAFE standards for new 
vehicles by 50 percent by the 2013 model year. The compromise with 
Senator McCain gives the auto industry two additional years to meet 
that standard, and introduces a trading system for greenhouse gas 
credits - a provision critics say could undermine the oil and 
pollution savings of the plan.

"We are troubled by a trading provision in the bill that would allow 
the industry to meet 10 percent of the overall fuel economy standard 
through trading with other industries," said Kate Abend, global 
warming associate at the U.S. Public Interest Research Group (U.S. 
PIRG).

"This loophole would cut into oil savings and reduction of global 
warming pollution by allowing the auto industry to trade greenhouse 
gas credits with non-petroleum based industries, essentially dragging 
the 36 mpg standard down to 32.4 mpg," Abend explained. "The trading 
scheme also sets a dangerous precedent by allowing trading between 
uncapped sectors. This would leave no way to track actual cuts in 
carbon emissions."

Still, the compromise proposal is seen as a far better bet than an 
amendment offered Thursday by Senators Carl Levin, a Democrat 
representing the nation's auto industry headquarters in Michigan, and 
Christopher Bond, a Missouri Republican. Their competing amendment 
would eliminate existing fuel efficiency language from the Senate 
energy bill - language which falls far short of the Kerry-McCain 
measure - and transfer responsibility for raising fuel economy 
standards to the Department of Transportation's National Highway 
Traffic Safety Administration (NHTSA).

Senator Christopher "Kit" Bond has cosponsored an amendment that 
could make it harder to increase CAFE standards. (Photo courtesy 
Office of the Senator)
"NHTSA's poor track record and ties to the auto industry preclude any 
expectation of significant action on fuel economy," warned U.S. 
PIRG's Abend. "In the last decade, NHTSA increased fuel economy 
standards for light trucks by a meager 0.5 mpg and never acted to 
increase the standards for cars."

In contrast, the American International Automobile Dealers 
Association (AIADA) sent letters to every U.S. Senator on Thursday 
expressing support for the Bond-Levin amendment.

"The investments of our members and the jobs in their businesses are 
in jeopardy if unreasonable and unworkable CAFE standards are 
adopted," the letter states, arguing that increasing vehicle fuel 
efficiency will be prohibitively expensive for the industry. The 
industry also warns that meeting the CAFE standards spelled out by 
the Kerry-McCain amendment would require automakers to sell smaller, 
lighter vehicles that provide less protection to drivers and 
passengers in crashes.

"AIADA believes the Bond-Levin amendment is the best vehicle to 
achieve increased fuel economy without jeopardizing consumer choice 
and safety," the industry group states.

Requiring automakers to increase the fuel efficiency of vehicles like 
this Ford Excursion, which averages 12 miles to the gallon, would 
reduce U.S. oil consumption (Photo courtesy Ford Motor Company)
The White House has issued a statement saying proposals to increase 
CAFE standards "would contribute to many thousands of additional 
passenger fatalities and injuries" by requiring smaller and lighter 
cars.

Supporters of increased CAFE standards counter that the technology to 
safely increase fuel efficiency already exists. In July 2001, the 
National Research Council released a report stating that automakers 
could meet a 37 mpg fuel economy standard phased in over 10 to 15 
years without compromising safety or industry profits.

More efficient engines, continuously variable transmissions, and 
better aerodynamics could all be used to boost the fuel economy of 
motor vehicles, the report noted.

"We have the technology to achieve better mileage for passenger 
vehicles without sacrificing safety or comfort," said Alliance to 
Save Energy president David Nemtzow. "A fuel efficient SUV [sport 
utility vehicle] can be just as comfortable and safe as a gas 
guzzler."

"As with any compromise proposal, this is not one hundred percent of 
what we were seeking," added the Sierra Club's Pope, "but it 
represents a real and serious step forward."


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