US House panel unveils new car fuel-economy proposal

Washington (Platts)--28Apr2006

The US House Energy and Commerce Committee Friday unveiled a "staff
draft" of legislation to make it easier for the Department of Transportation
to set passenger car fuel economy standards.

The committee said it will hold a hearing on Wednesday to discuss the
draft.

The proposal would require the Secretary of Transportation to proscribe
CAFE standards for passenger cars 18 months before automakers roll out a
new model year vehicle. Those CAFE standards "shall be the maximum feasible
average fuel economy level that the secretary decides manufacturers can
achieve in that model year," according to the draft.

Currently, DOT has to get permission from Congress to increase the
automobile CAFE standard above its current 27.5 miles per gallon or below 26
miles per gallon. If either the House or Senate votes against the move, the
change can not happen. The 27.5 miles per gallon standard for cars has been
unchanged since 1985.

The draft calls for fuel-economy rules to go into effect without input
from the Congress.

President George W. Bush Thursday called on Congress to make such a
change to allow the administration greater authority in setting the standards.
Neither the White House nor Congress has had much interest in raising CAFE
standards on automobiles.

--Cathy Landry, cathy_landry@platts.com

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