The Detroit News
CAFE bill could help automakers
Opinion
By Charles Griffith
July 12, 2007
Copyright © 2007 The Detroit News

It is tempting for many in the Motor City to view the recent Senate passage of improved Corporate Average Fuel Economy (CAFE) standards, over objections by Michigan's congressional delegation, as another slap in the face for an industry and region in trouble. As attention now turns to the House, where Michigan's John Dingell will play a leading role, many may be bracing for yet another perceived defeat.

It doesn't have to be that way. What if, instead of preparing for another battle, Congressman Dingell, Speaker Nancy Pelosi and other House leaders could embrace the Senate's actions and make peace between the struggling Midwest and the rest of the nation?

As passed, the Senate legislation requires average fuel economy for all passenger vehicles to reach 35 miles per gallon by 2020, but also contains a number of concessions to the auto industry. Most notably, rather than requiring that each manufacturer meet an average fuel economy target for all its vehicles -- as has been the practice for most of the last 35 years -- the new standards would be established based on vehicle size. This means that while every vehicle's fuel economy will increase, manufacturers with different vehicle mixes will now meet different averages -- but still add up to 35 miles per gallon across the entire industry.

The legislation also provides exceptions for "work trucks" over 8,500 pounds, allows for credit trading, and provides funding support for advanced battery research. The bill even allows the National Highway Traffic Safety Administration (NHTSA), the federal agency responsible for setting the standards, to adjust standards downward if it finds they are not "technically feasible" or "cost-effective."

The Senate legislation contains another flaw House leaders must fix. As written, the bill makes it easier for automakers to shift away from small vehicle production in the U.S. Without fixing this loophole, small car and truck production in Michigan, Ohio, and other parts of the Midwest could be put at risk. The UAW proposed a simple solution to this problem: Requiring that the average fuel economy of each manufacturer' s fleet not be allowed to drop (or "backslide") under the new rules. This fix should be included in any final legislation, ensuring that the most fuel-efficient cars and trucks continue to be made in the U.S.

Final legislation also needs to contain substantial financial incentives for retooling factories and investing in advanced vehicle technologies here in the U.S. . Encouraging the domestic manufacture of the most fuel-efficient vehicles, and the technology that goes into them, is good for the whole country, not just the Midwest.

Of course, the real end-game is the climate legislation that Chairman Dingell and the House Energy and Commerce committee has promised to tackle this fall.

Passing an economy-wide carbon cap and trading system is the only way to ensure all industry sectors do their part to address the climate problem, and could also generate substantial and consistent revenues to help automakers and other industries make the transition to new technologies.

Ultimately only an economy-wide system is likely to deliver a fair and effective policy that ensures our national climate protection goals will be met.

In the meantime, with a few improvements the Senate's fuel economy legislation could provide an important step forward in addressing critical energy and climate needs.

Charles Griffith is the Auto Project Director for the Ecology Center, where he leads efforts to reduce the environmental impacts of automobiles.

Copyright © 2007 The Detroit News