Bush administration unveils new US fuel efficiency proposal

Washington (Platts)--23Aug2005

US automakers must increase the average fuel economy for light trucks, a
category that includes pickups, minivans and some sports utility vehicles, by
model year 2011, under a Bush administration proposal unveiled Tuesday that
the US Transportation Department said could save between 5.4- and 10-bil gal
of fuel over the lifetime of the vehicle compared with current standards.
     But some of the biggest and most fuel-inefficient vehicles, including the
Hummer H2, which according to the company's web site weighs 8,600 pounds,
would not have to comply with the new rules, as they continue the current rule
which exempts vehicles over 8,500 pounds from fuel-economy standards. Fuel
efficiency of passenger cars also would not be raised under the proposal.     
The new proposal revamps the method for calculating fuel economy compliance by
dividing the light truck category into six separate categories determined on
size based on wheelbase (length) and track width, with smaller vehicles
required to get better gas mileage than larger trucks. 
     Within those categories, fuel economy standards will range from 26.8 mpg
to 20.4 mpg, based on their footprint, beginning in 2008 and eventually rise
to 28.5 mpg to 21.3 mpg by 2011.
     Specifically the new fuel economy levels expressed for the 2011 model
year are: 28.4 mpg for light trucks less than 43 square feet; 27.1 mpg for
light trucks between 43 and 47 square feet; 24.5 mpg for light trucks between
47 and 52 square feet; 23.3 mpg for light trucks between 52 and 56.5 square
feet; 21.9 mpg for light trucks between 56.5 and 65 square feet; and 21.3 mpg
for light trucks greater than 65 square feet.
     From 2008 to 2010, auto manufacturers would have the choice either to
meet the six separate standards based on truck size or stay with a single
fleet-wide target, which would be raised gradually from 22.5 mpg for model
year 2008 to 23.1 mpg for model year 2009 and to 23.5 mpg by model year 2010.
By 2011, all automakers must use the reformed, six-category system, according
to the DOT proposal.
     The proposals could cost automakers up to $6.2-bil between 2008-2011 to
comply with, DOT said.
     Automakers currently are required to maintain a fleet average of 27.5
miles per gallon for passenger cars and 21 mpg for light trucks or face
penalties. The standard for light trucks has already been lifted once during
Bush's first term, with a requirement that the fleet average be raised to 21.6
mpg for model year 2006 and to 22.2 mpg standard for model year 2007.
     The Sierra Club environmental group blasted the proposal, specifically
the new size-based categories, saying it "creates new loopholes" that would
encourage automakers to build larger vehicles in order to qualify for weaker
fuel economy standards.
     "At a time when Americans are paying record prices for gas, the Bush
administration has sided with its cronies in the auto industry and rejected
real solutions," Dan Becker, director of the Sierra Club's global warming
project, said in a statement.
     "Making our cards and trucks go farther on a gallon of gas is the biggest
single step we can take to save money at the gas pump, cut oil dependence and
curb global warming."
     Comments on the new CAFE standards are due by Nov 22, DOT said. Under
statute, the rulemaking must be finalized by April 1, 2006 to give automakers
time to time to meet the new standards for FY 2008.

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