Lawmakers Agree to Dramatic Increase in Fuel Efficiency

Democratic leaders in the U.S. House of Representatives struck a deal late Friday night (November 30, 2007) that will raise fuel-economy standards for cars and light trucks 40 percent by 2020.

Under the new proposal, U.S. automakers would be required to raise fuel efficiency for cars and light trucks an average of 35 miles per gallon—up from today’s standards of 27.5 mpg for cars and 22.2 mpg for SUVs and pickups.

House Speaker Nancy Pelosi (D-Calif.) has been pushing for the agreement since the House dropped a similar provision for legislation passed earlier this year. She called the new proposal “an historic advancement in our efforts in the Congress to address our energy security and laying strong groundwork for climate legislation next year.”

_{Photo of U.S. House Speaker Nancy Pelosi by Mark Wilson/Getty Images}

U.S. Rep. John Dingell (D-Mich.), who chairs the House Commerce Committee and is a longtime advocate for U.S. automakers from his state called the new standards “aggressive and attainable,” but also won some concessions for his constituents. For example, automakers will continue to get credit toward their fuel-economy goals for selling flex-fuel vehicles that can run on a blend of gasoline and ethanol. On the other hand, Dingell lost his bid to weaken the authority of the Environmental Protection Agency to regulate auto emissions, and to override a landmark Supreme Court ruling through congressional action.

The concessions were not one-sided, however. Pelosi and other supporters of even tougher legislation agreed to drop a few provisions, including $16 billion in new taxes on the oil industry, which had drawn a veto threat from President Bush.

Automakers opposed the adoption of increased fuel-economy standards, arguing that the change would cost them tens of billions of dollars and narrow choices for consumers. Despite the objections of U.S. automakers, other countries are already doing more. European automakers must average 40 mpg, and China already has a 35 mpg standard.

The agreement also clears the way for the House to vote on a broad energy package this week, most likely today. The energy legislation, including the new fuel-economy standards, is expected to pass easily in the House and is already gaining support in the Senate, which is expected to pass the legislation before Congress adjourns in mid-December.

Sen. Dianne Feinstein (D-Calif.), who was involved in the discussions with House Democrats as the fuel-economy compromise was worked out, called the agreement "a major milestone and the first concrete legislation to address global warming."

Also read:

• New U.S. Fuel Economy Standards Too Weak to Be Effective
• Automakers Spinning Their Wheels on Fuel Economy
• New Fuel Economy Label Helps Consumers Make Informed Car-Buying Decisions
• All About Ethanol