Senate Majority Leader Harry Reid, Democrat-Nevada told
reporters on June 21 that he would not allow the derailment of
the tax package to sink the overall bill, even as he excoriated
Republicans for "pandering to the big oil and energy companies."
But it remained unclear if the bill would pass at that point,
because some lawmakers continued to object to the section of the
legislation that sought to raise Corporate Average Fuel Economy
standards for cars and trucks.
The bill will achieve serious savings for oil ... and put
money back in the pockets of American consumers.
--Senator Dianne Feinstein
The original bill language would have boosted CAFE standards
for both cars and trucks to 35 miles per gallon by 2020, a
significant increase from the current fleet average of 25 mpg
that has existed since the mid-1970s. But the original provision
would have also mandated an additional 4% increase every year
between 2021 and 2030, which the auto industry -- as well as
Michigan's two Democratic senators, Carl Levin and Debbie
Stabenow -- vigorously opposed.
Levin, Stabenow and other several other senators crafted a
less-stringent plan that would have required cars to get 36 mpg
by 2022, while trucks would have to achieve only 30 mpg by 2025.
There were no additional increases in subsequent years under the
Levin/Stabenow plan. But the Democratic leadership refused to
endorse the approach, saying it was too weak to force
much-needed changes on US automakers, which have lost billions
of dollars in recent years because of lagging sales of
gas-guzzling pickup trucks and SUVs.
But the
CAFE roadblock was
resolved on the afternoon of June 21, when a host of senators
from both sides of the aisle hammered out a compromise amendment
that stuck a middle ground between the original bill language
and the Levin plan. The compromise, which was spearheaded by
Republican Ted Stevens of Alaska and Democrat Thomas Carper of
Delaware, requires both cars and trucks to achieve an average of
35 mpg by 2020, but there is no hard and fast requirement for
further increases beyond that point.
"The bill will achieve serious savings for oil ... and put
money back in the pockets of American consumers," said Senator
Dianne Feinstein, Democrat-California, who helped broker the
compromise.
The CAFE provision will reduce US oil consumption by as much
as 2.5 million barrels per day by 2025, senators involved in the
compromise said. That could save US consumers nearly $100
million in gasoline costs, they said.
Notably, the CAFE compromise was rolled into the underlying
bill in a very unusual fashion, as the Senate adopted the
measure by voice vote and without a word of debate on the Senate
floor. Some senators only learned of the move when Senator John
Kerry, Democrat-Massachusetts, announced it at a press
conference that was being held just off the floor. "It's a done
deal," Kerry announced, sending some senators and reporters
scrambling for the exits.
Reid to GOP: "Cool the jets"
Still, final passage of the bill was nearly derailed in the
eleventh hour when Senator Kent Conrad, Democrat-North Dakota,
took to the floor and declared that Democrats would reinstate
the tax package in a forthcoming conference committee with the
House, which is necessary before the Senate legislation can be
sent to President Bush for his signature.
"That created a considerable amount of angst on this side of
the aisle," said Senator Mitch McConnell of Kentucky, the
Republican leader. "There was substantial opposition to this
massive tax increase which would have been added to the bill."
That forced Reid into damage-control mode, as the Democratic
leader called on Republicans to "relax" and "cool the jets" on
the issue. Reid narrowly succeeded, as 62 senators -- just two
more than were required under Senate rules -- voted to end
debate on the bill. Eighteen Republicans joined that cause,
while six Democrats -- including Levin and Stabenow, who did not
support the CAFE compromise language -- voted against cloture.
Levin and Stabenow also voted against final passage of the bill,
as did Landrieu.
The Alliance of Automobile Manufacturers, the industry's main
trade group, issued a statement commending Levin, Stabenow and
other senators "who worked to eliminate provisions of concern in
the energy bill." But the alliance made it clear that it was not
happy with the more stringent CAFE provision that was ultimately
passed in the final bill.
"This is a long process, and we are continuing to work
constructively to develop reasonable fuel economy standards that
are affordable and preserve the cars and light trucks that
farmers, tradesmen, business owners, outdoor enthusiasts and
families need every day," the group said.
