The Oilspot
Wednesday, March 13, 2002 VOLUME 7 ISSUE 11  


FRONT PAGE



Senate Kicks Fuel Economy Increase
Senate Energy Debate Continues


Labor Department Will Issue Ergonomics Guidelines, Not Standards
Delayed Portions of OSHA Recordkeeping Rule Due Soon
OSHA Enforcement Said to be Down Under Bush Administration


Albertson's to Exit Four Markets
Alon Israel Stands Firmly in U.S. Market
OPEC Output Up in February
Mapco Express Moves into Acquisition Mode
BP Rolls Out New Fleet Cards


Rejected EPA Nominee Gets New Post
EPA Region 8 Gets New Administrator
Senate Kicks Fuel Economy Increase
What would "soccer moms" drive?

WASHINGTON -- The Senate rejected tough new automobile fuel economy requirements Wednesday amid disagreement over safety and whether the new standard would force "soccer moms" to abandon their sports utility vehicles and minivans, says a report by the Associated Press.

Instead, senators approved by a 62 to 38 vote a more industry-friendly proposal that would direct the Transportation Department to develop new fuel economy rules, but sets no specific increase for the automakers to meet.

A provision that would have required automakers to increase their fleetwide gasoline economy to 36 miles per gallon by 2015, an increase of about 50 percent from current rules, came under sharp attack as a threat to the U.S. auto industry and the ability of Americas to choose their vehicles.

“I don’t want every American to have to drive this car,” said Minority Leader Trent Lott (R-Miss.), pointing to picture of a subcompact. He said the fuel economy rules amounted to the government mandating consumer choice.

Sen. John Kerry (D-Mass.), who has led the fight for the 50-percent fuel economy increase, said automakers clearly have the technology and with a 13-year lead time would be able to make the fuel economy improvements without sacrificing size or safety. “No American will be forced to drive a different vehicle,” he said, accusing opponents of engaging in “a lie” and “extraordinary, ridiculous scare tactics” by claiming that suburban soccer moms will have to give up their SUVs and minivans and farmers would have to till their land in subcompacts.

Senate Majority Leader Tom Daschle (D-S.C.) called the vote “a missed opportunity…to pass meaningful [fuel economy] standards” and noted that it has been 15 years since the federal regulations had been changed.

Automakers currently are required to meet a fleet average of 27.5 mpg for sedans and 20.5 miles per gallon for SUVs, minivans and pickups. The Kerry proposal would have combined the two categories and required the industry to meet an average 36 mpg overall fuel economy by 2015. He had offered to exempt some pickup trucks in an effort to try to garner additional support.

Sen. Carl Levin (D-Mich.), one of the co-sponsors of the alternative proposal that was approved, rejected claims that his approach would not improve fuel economy. It would require the National Highway Traffic Safety Administration within two years to issue new fuel economy rules, but “in a way that does not harm the domestic manufacturing industry.”

“American women love their SUVs and minivans…because of their safety,” said Sen. Barbara Mikulski (D-Md.), a cosponsor of the less-stringent proposal.

Both sides cited the National Academy of Sciences report that concluded that fuel economy improvements, including gains of as much as 42 percent on SUVs and minivans, are achievable without sacrificing size or horsepower, using technologies already available. But the study also warned that without adequate lead time, automakers could be forced to resort to smaller, lighter vehicles, reducing safety. Kerry countered that the 13-year lead time in his legislation is plenty for automakers to comply using current and emerging technologies, including hybrid electric-gasoline vehicles now appearing in showrooms.

Supporters of the tougher measures argued it’s impossible to address the broader issue of energy conservation without reducing gasoline consumption by increasing the federal Corporate Average Fuel Economy (CAFE) standard. Passenger vehicles use about 40 percent of all the oil used today, or nearly 8 million barrels a day.

“If we don’t increase CAFE standards, America will only grow more and more dependent on foreign oil,” said Sen. Susan Collins (R-Maine), one of only six GOP senators who favored the tougher fuel use requirements; 19 Democrats and 43 Republicans favored the Levin proposal.


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