U.S. Rep. John Dingell’s committee has proposed an increase in fuel-economy standards for cars and trucks, a sign that the U.S. auto industry would rather bargain with Congress than flatly oppose tougher efficiency rules.
Under the draft proposal by a subcommittee of the Dearborn Democrat’s House Energy and Commerce Committee, automakers would have to meet standards of at least 36 miles per gallon for cars after 2021 and 30 m.p.g. for trucks after 2024, or roughly 32.5 m.p.g. overall.
The leading proposal in the Senate would force the industry to average 35 m.p.g. by 2020, an increase automakers call unreasonable. Detroit automakers, especially General Motors Corp., have railed against the entire system of federal fuel-economy rules for decades, saying they forced them to build vehicles that consumers didn’t want.
Yet the broad support of the Senate bill — thanks to global warming concerns, rising gasoline prices and energy independence worries — has forced the auto industry to either find an increase it could support or risk getting sidelined in the debate. Last week, U.S. Sen. Carl Levin, D-Mich., sent a proposal around Capitol Hill with similar fuel-economy targets, including a clause that could allow automakers to avoid federal fuel-economy rules entirely.
Automakers have been in discussions with lawmakers for weeks over fuel economy issues, and executives have acknowledged the need to tackle the debate head-on and acknowledge the move to raise standards rather than fight any increase as they have in the past. With its two top defenders on Capitol Hill now proposing similar standards that includes eventual increases, the industry has an outline of ideas it can pitch to other lawmakers.
The draft proposal issued by subcommittee Chairman Rep. Rick Boucher, D-Va., contains several provisions automakers will gladly support. It would prevent the U.S. Environmental Protection Agency from limiting greenhouse gas emissions from cars and trucks, reversing a U.S. Supreme Court ruling last month granting the agency that power.
It also would block California and other states from setting their own fuel-economy standards as part of their fight against global warming. California officials have threatened to sue the EPA if it doesn’t grant, by October, permission for California’s standards, which would essentially force automakers to hit a target of 43 m.p.g. by 2016.
The draft bill provides incentives for any U.S. manufacturers of advanced battery technology necessary for high-tech vehicles such as plug-in hybrids, and gives automakers grants to retool closed plants for building hybrids and flexible-fuel vehicles.
Dingell, the industry’s chief champion on Capitol Hill, has said that the Senate proposals stood little chance in the House. He and Boucher plan to hold a hearing on the proposal Thursday and have said they would prefer to replace fuel-economy rules for automakers with broader proposals aimed at reducing emissions of carbon dioxide across the economy.
The draft would force fuel providers to lower the carbon content of their fuels, and requires automakers to estimate the lifetime carbon emissions of their vehicles and set targets for enabling new models to burn alternative fuels such as ethanol.
The proposal “moves towards an eventual economy-wide greenhouse gas control program,” Boucher said in a letter accompanying the draft.
Dingell has been driving committee members to meet a deadline set by House Speaker Nancy Pelosi, D-Calif., to craft energy proposals by July 4. Boucher said in his letter that the draft would be part of the package of bills the whole committee will consider later this month.
The heads of Detroit’s three automakers, along with United Auto Workers President Ron Gettelfinger, are scheduled to visit Capitol Hill on Wednesday, where they plan to lobby lawmakers in person.
