Who's Who in the Battle Over Auto Efficiency Standards

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Has the US Congress officially punted on boosting fuel economy, or CAFE, standards? So reports the Detroit Free Press today:

Congress will wait until at least December before attempting to tackle any increase in fuel economy standards as part of a broad energy bill, the House majority leader said Wednesday.

What happened? Just two days ago Speaker of the House Nancy Pelosi announced that she would secure a full vote by Thanksgiving on an energy bill that includes increased mileage provisions.

One thing’s for sure: It's not because Detroit automakers lack the technology to build a more fuel efficient fleet. Evidence Europe. Still, it's looking as though they managed yet again to tip the political scales in their favor. Their lobbyists fought hard for delay. Too many politicians caved. And voila, the US remains dead last in fuel economy among the world's industrialized nations.

Here are the cast of characters, and their positions:

US Senate
In June, the US Senate set the tone for the debate by passing an energy bill with a fuel economy standard of 35 mpg for cars, light trucks, and SUVs by 2020. That's an increase of 40 percent from today's standard of 27.5 mpg, which hasn't budged in over 20 years. The provision would create a single fuel-economy standard for cars and trucks, and domestic and imported fleets. According to the Union of Concerned Scientists, the Senate's mileage provision would also:

  • save drivers $25 billion at the pump in 2020, above and beyond
    the cost of the technology (at the 2006 average gas price of $2.55, in
    2005 dollars)
  • generate 22,300 jobs in the auto industry and a total of 170,800 new jobs nationwide in 2020 (You can see the full UCS analysis here.)
  • cut 206 million metric tons of global warming pollution in 2020
    alone—equivalent to taking more than 30 million of today's average cars
    and trucks off the road
  • save 1.2 million barrels of oil per day—equivalent to the amount of oil the United States now imports from Saudi Arabia daily

US House
In August, the House passed an energy bill that completely left out increases in fuel economy. Speaker Pelosi pledged to secure a strong CAFE standard in a compromise bill. She has yet to honor that promise.

The Democratic Leadership (Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid)
Both leaders voiced strong support for the CAFE increase passed by the Senate in June. Both bungled.

Detroit Big 3 Automakers (Ford, GM, Chrysler) + United Auto Workers Union (UAW)
They all supported the Hill-Terry bill, which calls for a weak standard of 32 mpg for light trucks to 35 mpg for passenger cars by 2022. It has the support of 176 members of the House, including 64 Dems. Hill-Terry would allow automakers to essentially meet part of the target through loopholes that would not result in actual fuel savings.

According to the UCS, the US Senate standard would cut U.S. oil consumption 140 percent more than Hill-Terry. It would also save Americans $14 billion more than Hill-Terry at the pump, and cut 242 percent more global warming pollution.

Reps. Baron Hill (D-Ind) and Lee Terry (R-Neb) sent a letter to Speaker Pelosi on November 9, stating:

"should the final bill create a fuel economy standard more strict than the Hill-Terry bill, we would be forced to reconsider our support for the entire energy package when it comes before the full House."

House Energy Committee Chairman John Dingell (D-MI)
Rep. Dingell is the powerful 27th-term Democrat from Michigan. His district includes Detroit. His ties to the auto industry are legendary. He helped secure the bailout for Chrysler in 1979 and has fought numerous auto industry regulations from airbags to tailpipe emissions.

Dingell is who we call the "one-man speed bump" in Congress, and who MoveOn.org calls Dingellsaurus. He "strongly supports" Hill-Terry. (In all fairnness, Rep. Dingell has also made the bold move to support a carbon tax. Not surprisingly, it prompted the NYT to ask: What is John Dingell Really Up To?)

Toyota
The maker of the Prius joined forces with the Detroit 3 to lobby against the Senate's 35 mpg standard, earning the company the name "two-faced" by the UCS, "duplicitous" by the National Environmental Trust, and this scathing column by Thomas Friedman. Toyota supports the Hill-Terry bill.

Nissan Motor Co.
The Japanese manufacturer broke ranks with the other automakers and supported the Senate's 35 mpg standard and managed to tweak some provisions to its own competitive advantage. To the dismay of its rivals, Nissan supports a single gas mileage standard for US and foreign markets, and for cars and light trucks. The domestic car makers and Toyota say that Nissan has an ulterior motive to tilt US policy toward its strengths. Even though Nissan is on the right side of the issue, it's a fair accusation, as The Politico explains in this excellent article.

The "Nissan Bloc"
It's the name given to Senate Minority Whip Trent Lott (R-Miss.), and Tennessee GOP Sens. Lamar Alexander and Bob Corker, by some auto industry lobbyists, according to The Hill. They earned the name because they have Nissan manufacturing plants in their states, and they've followed the lead of the Nissan lobbyists. They supported the Senate standard of 35 mpg with Nissan's proposed rewrites.

And last (and apparently least)...

The American Public
American voters overwhelmingly support an increased fuel economy standard that is at least at the Senate's 35 mpg level, according to a new poll sponsored by the Pew Campaign for Fuel Efficiency. They believe that reducing US dependence on foreign oil is a central national security imperative. They believe we've gone to war for oil. They want it to end, and they support CAFE standards as a means to keep America safe. In every region of the country, the Americans polled reject the auto industry's arguments against stronger CAFE standards.

It was just two months ago when hopes were high. There were strong energy bills before the US Congress. The compromise bill was supposed to have three teeth: increased fuel economy standards, a Renewable Portfolio Standard, and an end to some of the hefty tax breaks bestowed on Big Oil. Now that very same bill is on the verge of being completely toothless.

 


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