To: ThirdEye who wrote (236885 ) 3/13/2002 5:32:59 PM From: Ron Read Replies (1) | Respond to of 769667 Senate Rejects Hike in Vehicle Fuel Standards Wed Mar 13, 4:34 PM ET By Tom Doggett WASHINGTON (Reuters) - The Senate Wednesday rejected a proposal for a 50 percent boost in fuel efficiency for gas-guzzling cars and sport utility vehicles, giving a victory to the heavy lobbying of the auto industry and a defeat to environmentalists. Instead, lawmakers gave the federal government two years to develop its own targets. They also agreed to exempt pickup trucks -- which account for 19 percent of automakers' sales -- from any future increases in vehicle fuel requirements. However, it remained uncertain whether the Senate's fuel economy provision would become law because it is part of an underlying energy bill that faces a tough fight through next week. Automakers argued that stricter standards would cost thousands of labor union workers their jobs and force "soccer moms" to switch to smaller, less safe vehicles. The decision was a blow to environmental groups and some moderate Republicans, who said the United States needs more fuel-efficient vehicles to reduce dependence on foreign oil. "The Senate is handing our nation's energy security over to the auto industry," said Sierra Club (news - web sites) Executive Director Carl Pope. The debate was the most acrimonious battle yet over the Senate's attempt to write a broad energy policy that promotes more domestic energy production and conservation. Instead of boosting fuel standards, the Senate approved a weaker provision requiring the federal government to first consider the impact of higher fuel mileage requirements on passenger safety and job losses in the auto industry. The amendment sponsored by Michigan Democrat Carl Levin and Missouri Republican Christopher Bond, which passed 62-38, does not call for specific increases in vehicle fuel economy and leaves it to the Transportation Department to decide. "I don't pretend to know what's best for 15 million Americans purchasing a vehicle each year," Bond said. "I don't want to tell the mom in my home state that she should not get an SUV, because Congress decided that would be a bad choice." Separately, the Senate voted 56-44 on an amendment to exempt pickup trucks from future increases in vehicle fuel standards. The amendment, offered by Democrat Zell Miller of Georgia, maintains the current fuel standard of 20.7 miles per gallon for pickups. Supporters of the amendment argued that pickups were primarily used by construction workers, farmers and other businesses that would suffer if the trucks had to be made smaller to meet stricter requirements. US BIGGEST OIL CONSUMER Democrat Richard Durbin of Illinois criticized senators for buckling under lobbying from automakers and labor unions who opposed the proposal for a 50 percent boost in fuel standards. Massachusetts Democrat John Kerry and Arizona Republican John McCain had put forward that rival plan. "The Senate will bow down to the special interests this morning and America will have to bow down to OPEC (news - web sites) for years to come," said Durbin, referring to votes for the Levin-Bond plan. "This is a pattern of delay ... it is one more step in Detroit's effort to prevent us from having an opportunity to have cars that are competitive and meet the needs of the future," Kerry said. Under the Kerry-McCain proposal, automakers would have had to increase the combined Corporate Average Fuel Economy of cars and sport utility vehicles from the current 24 miles per gallon to 36 mpg by 2015. The Kerry-McCain proposal would have cut oil imports by about 1 million barrels per day and reduced pollution. America's love affair with big, roomy vehicles means that gasoline demand accounts for 44 percent of the nation's average oil consumption of 19.8 million barrels per day. FUEL STANDARDS FROM 1970s Republican Sen. Mike DeWine of Ohio, speaking in favor of the winning proposal, said the higher mileage standards would have forced consumers to drive smaller and lighter-weight vehicles that would be less safe. "Simply put, you cannot increase CAFE standards without increasing fatalities," DeWine said. When Congress adopted the original fuel standards nearly 30 years ago, most Americans drove cars and sedans. Today, however, more than half of all new vehicles sold in the nation are sport utility vehicles, mini-vans and other light trucks. Detroit contends that small cars with high fuel mileage are already available, but that consumers do not want them. DaimlerChrysler said it welcomed the Senate vote and that it would work with the government on new fuel standards "in a way that does not compromise safety." The Levin-Bond plan provides a tax credit of up to $6,000 for buyers of electric vehicles. It would also offer an $11,000 tax credit for fuel-cell vehicles and a $5,000 tax credit for cars that run on combined gasoline and electric engines. Service stations would also be able to deduct up to $100,000 in the first year they install alternative refueling equipment like pumps and storage tanks. In addition, the federal government would be required to purchase more hybrid and alternative fuel vehicles. If passed, the overall energy legislation would still have to be reconciled with a very different energy bill passed last year by the Republican-controlled House of Representatives. Senate Democratic leaders said they want to finish work on the energy bill by the end of next week.