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  Legislative Feature

CAFE Standards Unlikely to Change

Posted 4/4/2002
By Robert L. Redding, Jr.

Fuel economy has been a hot topic on Capitol Hill this year, including numerous discussions about the Corporate Average Fuel Economy (CAFE). The current standard for passenger vehicles is 27.5 mpg; 20.7 mpg for light trucks and SUVs. As part of its national energy policy debate, Congress has discussed raising these standards. Some experts say fuel economy can be improved in America's vehicles. Auto manufacturers argue this can't be done. the debate continues.

Since the Sept. 11 terrorist attacks, preserving the nation's fuel supply has become a vital interest for Americans. The United States contains 3 percent of the world's oil reserves but uses 25 percent of the oil produced worldwide. Fuel economy has been a hot topic of discussion this year on Capitol Hill and with President George W. Bush's administration. This includes discussions on the Corporate Average Fuel Economy (CAFE). The current fuel economy standard set in 1975 for passenger vehicles is 27.5 miles per gallon and 20.7 mpg for light trucks and sport utility vehicles (SUVs).

In 1975, the U.S. Congress passed the Energy Policy and Conservation Act in response to the energy crisis. This Act required passenger vehicles and light-duty trucks to meet CAFE standards. CAFE standards refer to a vehicle manufacturer's fleet of automobiles. For instance, Ford Motor Co.'s entire fleet of passenger vehicles for 2002 must meet a 27.5 mpg fuel economy standard.

As part of its national energy policy debate, the U.S. Congress has discussed raising the CAFE standards for light trucks and SUVs and the cost impact this would have on the public. Headlining the debate is the growing number of SUVs on America's roads. U.S. Sen. Dianne Feinstein, D-Calif., a supporter of raising CAFE standards, stated at a hearing before the U.S. Senate Commerce Committee: “At the time of the original CAFE legislation in 1975, people didn't drive SUVs. When automotive companies began to manufacture SUVs, they built them to meet truck specifications. Today almost half of all new passenger vehicles sold in America are SUVs or light-duty trucks.”

At the heart of discussions on CAFE is preserving the nation's fuel and vehicle safety. U.S. Sen. John McCain, R-Ariz., ranking member of the Senate Commerce Committee, has stated he wants to “take the necessary steps to improve fuel economy without compromising safety.” Vehicle safety is an important factor when consumers purchase new vehicles. Americans today drive large vehicles out of a sense of safety.

The National Academy of Sciences (NAS) released a report in 2001 on fuel economy that finds vehicle safety or choice does not have to be compromised to achieve better fuel economy. In today's market, consumers have many vehicles from which to choose. Auto manufacturers produce a variety of vehicles from small cars to light-duty trucks and SUVs. Consumer choice has never been larger.

U.S. Sen. John Kerry, D-Mass., released results from a study conducted on auto manufacturers and where they have spent their money developing technology since the mid-1980s. According to the study, auto manufacturers have spent 53 percent on new technology for horsepower, 19 percent on vehicle weight and 18 percent on vehicle acceleration, but showed a decrease (-8 percent) on fuel economy.

The NAS report found fuel economy can be improved in America's vehicles. It pointed out that auto manufacturers do have the technology to provide better enhanced fuel economy without compromising safety. However, auto manufacturers argue this can't be done. They believe it is not cost effective and updated technology isn't available.

According to Joan Claybrook, former administrator for the National Highway Traffic Safety Administration (NHTSA) from 1977-1981, “during the 1970s when the CAFE standards were first created, the auto industry said the same thing, but all have achieved the 27.5 and 20.7 mpg standards.” Ford Motor Co. has agreed voluntarily to increase its SUV fleet fuel economy 25 percent by the year 2005.

A recent move by NHTSA was disappointing to many pro-CAFE advocates and environmentalists. The agency decided not to take advantage of their option to increase CAFE standards for light trucks and SUVs on 2004 model vehicles. The U.S. Congress granted NHTSA the option to increase the standards last year. The agency cited the April 1 deadline as “not enough time to study the issue.” Dan Becker of the Sierra Club said, “It's deeply disappointing that the Bush administration isn't trying to save oil when we've been reminded by the events at the World Trade Center and the Pentagon that our oil dependence makes us pay a real price.”

Legislation

Sens. Feinstein and Olympia Snowe, R-Maine, have introduced bipartisan legislation, The Automobile Fuel Economy Act (S.804). The legislation seeks to “close the SUV loophole” by increasing the fuel efficiency of SUVs and light trucks to the same standard as passenger vehicles: 27.5 mpg. The bill seeks to increase fuel efficiency to 33 percent by 2007. A companion bill, H.R.1815, has been introduced in the U.S. House of Representatives by Rep. John Olver, D-Mass.

U.S. Sens. Fritz Hollings, D-S.C., chairman of the Senate Commerce Committee, and Kerry have introduced legislation, S.1927, that requires automakers to raise CAFE standards to 35 mpg by 2013.

McCain has introduced his version of CAFE legislation that would raise CAFE standards to 36 mpg by 2016. McCain's bill will give automakers another three years to raise their standards.

Kerry and McCain joined their efforts to attach a 36 mpg standard by 2015 to the Senate energy legislation offered by Sens. Jeff Bingaman, D-N.M., and Majority Leader Tom Daschle, D-S.D. They withdrew the amendment after Sen. Carl Levin, D-Mich., was successful in attaching his amendment delaying for two years an increase in the CAFE standard. The Levin amendment passed 62-38. The U.S. Department of Transportation will now be required to study the issue for two years.

U.S. Sen. Zell Miller, D-Ga., succeeded in attaching his CAFE amendment that exempts all pickup trucks from any increase in the standard.

The energy legislation is still being debated in the U.S. Senate.

Bob Redding Bob Redding is the Automotive Service Association's Washington, D.C., representative. He is a member of several federal and state advisory committees involved in the automotive industry.

For more information about the legislative activities of ASA, visit www.TakingTheHill.com.

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