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At the end of June, Representatives Lee Terry (R-NE) and Baron Hill (D-IN) sponsored a bill in the House that increases corporate average fuel economy by up to 35mpg by 2022. The Alliance of Automobile Manufacturers, which includes the Big 3 and Toyota, has supported the bill, as well as the UAW, stating that it is more "reasonable" than other bills that have been introduced. Many environmental groups have opposed the bill on grounds that it is weaker than the Senate energy bill and other bipartisan fuel economy legislation and sets an unnecessary cap on future fuel economy standards.
The provisions included in the bill are as follows:
- Requires that NHTSA establish new passenger and non-passenger vehicle fuel economy standards that are set at the maximum feasible level.
- Allows NHTSA to prescribe attribute-based standards (i.e. standards that vary for different sizes of vehicles).
- Sets a maximum fuel economy standard of 35mpg for cars and light-trucks in 2022. Also sets a minimum standard of 32mpg for 2022 and subsequent model years.
- Requires that manufacturers maintain a minimum fuel economy standard for their domestically-produced fleets. This standard is designed to ensure that some small car production remains in the U.S.
- Allows credit trading amoung manufacturers, but does not allow the use of credits to help a manufacturer meet the minimum standard for domestically-produced cars.
- Uses fees collected from non-compliance to provide grants to automakers and component suppliers to pay a portion of the cost to reequip or expand existing manufacturing facilities in the US to produce advanced technology vehicles or components.
- Establishes a fuel economy rating system for tires.
- Establishes a public education program on conserving transportation fuel.
- Extends the current CAFE credit for flex-fuel vehicles to 2020 (currently set to expire in 2010).
For more information, visit:
- Library of Congress - HR.2927
- The Detroit News - Smart Fuel Rules are Needed
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