Fuel efficiency a priority
NAS panel urges government to regulate fuel efficiency of new vehicles
By CNN White House Correspondent Major Garrett
July 17, 2001: 2:15 p.m. ET
WASHINGTON (CNN) - The National Academy of Sciences recommended higher fuel-efficiency standards for all U.S.-made vehicles, including light trucks and sport/utility vehicles, a senior administration official said Tuesday. The official also told CNN that the Bush administration will give "a lot of weight" to the recommendation.
"We pretty much hung our hat on the study," said the official, who is deeply involved in administration deliberations on new fuel-efficiency standards. "The panel was designed to be as objective as possible, and we knew the natural result was pushing toward higher CAFE standards. The report is going to be a big-part of our deliberations."
CAFE refers to Corporate Average Fuel Economy standards, the rubric for Washington rules regulating fuel efficiency for domestically produced automobiles, light trucks and SUVs. Under a 1975 law, passenger cars must achieve an average fuel efficiency of 27.5 miles per gallon, while light trucks and SUVs must meet a standard of 20.7 miles per gallon.
Federal panel urges automakers to improve mileage of new vehicles. (CNN/File)
In addition to complying with the fuel efficiency law, automakers receive economy credits for vehicles capable of using ethanol, a gasoline substitute made from corn. Yet, manufacturers are being criticized for taking advantage of rules regulating its use, with some producing more vehicles that can burn either gasoline or pure ethanol as a way to qualify for extra fuel credits, according to a report in Tuesday's New York Times.
General Motors (GM: Research, Estimates), Ford (F: Research, Estimates), and DaimlerChrysler (DCX: Research, Estimates) are producing close to a million vehicles that burn either gasoline or ethanol, the Times said.
The senior official said the academy study found that fuel efficiency for light trucks and SUVs could be raised by as much as eight to 11 miles a gallon over the next six to 10 years. The report says gains can be made in all makes and models and that the cost of modifying vehicles to achieve higher efficiency will be outweighed by savings reaped at the gas pump.
The 13-member panel was made up of engineers and consultants from the automobile and oil industries, economists and retired oil executives. Environmentalists originally complained about the lack of representation from their movement, but the complexion of the NAS panel gives added credibility to its findings, the senior official said.
The academy submitted a draft report endorsing much higher fuel efficiency for all vehicles. Energy Secretary Spencer Abraham wrote the legislation establishing the academy study while he was a Republican Senator from Michigan.
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The NAS report is circulating on Capitol Hill. Senior advisers at the Energy Department also received a copy. Chet Lunner, a spokesman for the Department of Transportation, said his office had not received a copy. The Department of Transportation is the lead rule-making agency dealing with fuel efficiency standards. Lunner acknowledged the importance of the NAS study. "We've always said sound science was the way to go on this and this report will be key," he said.
The administration cannot move on fuel standards until Congress lifts a moratorium on studying the matter. Congress has for six years blocked the Transportation Department from spending any government funds to study higher fuel standards for U.S.-made vehicles. That prohibition expires Sept. 30, the end of the fiscal year. The administration is pushing for an immediate end to the ban, but Congress has yet to comply.
The chief players who supported the moratorium already signaled new fuel efficiency standards are inevitable, even for light trucks and SUVs. A key House subcommittee last week passed a bill requiring SUVs and light trucks to reduce fuel consumption by 5 billion gallons from 2004 to 2010. Rep. John Dingell, D-Mich., and Rep. Billy Tauzin, R-La., chairman of the Energy and Commerce Committee, cleared the provision. Dingell has long opposed increasing fuel efficiency standards for U.S.-made vehicles.
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Once the moratorium on studying high fuel-efficiency standards is lifted, the Department of Transportation can begin work on the issue and develop new fuel-efficiency standards, which all U.S. automakers would be required to meet. The senior administration official noted that the report did not shy away from the historic downside of lighter, more fuel-efficient vehicles -- an increase in the number of traffic fatalities and injuries. The official said key figures in the administration, including Abraham, Chief of Staff Andrew Card and Transportation Secretary Norman Mineta, wanted to see how the NAS study balanced the benefits of higher fuel efficiency against potential risks posed by lighter vehicles.
According to the senior official, the report says new engine technologies can achieve efficiency gains without compromising the weight of the cars. What's more, the report also says that light trucks and especially SUVs can be made with more efficient engines and lighter materials, bringing their weight more in line with other vehicles. These changes could reduce injuries and fatalities while still achieving new fuel efficiency gains, the official said.
Key administration officials also wanted to make sure the NAS recommendations, if implemented, would not put U.S. automakers at a competitive disadvantage. "Everyone is for more fuel efficiency, but we wanted to make sure the NAS looked at the other elements of the equation," the senior official said. "It appears they've taken a serious look at these factors." |
