Loophole Lost in CAFE debate

Washington DC June 14, 2007; The AIADA newsletter reported that U.S. Senate allies of car companies said today they are dropping a proposal that would allow automakers to avoid future fuel economy requirements by proving to the government they would accomplish more by other means to cut fuel use and greenhouse gas emissions.

Automotive News reports that Sen. Carl Levin (D-MI) said the proposal had been misinterpreted by opponents of his effort to offer an alternative to the fuel economy bill that is being debated by the Senate.

The industry calls the Senate measure extreme and unworkable. Levin said he and other industry-friendly senators are "polishing" provisions of the alternative. He did not say when it will be made public. He said he still expects to propose that sometime after 2020, cars would be required to average about 36 mpg and trucks about 30 mpg.

Today's standards are 27.5 mpg for cars and 22.2 mpg for trucks. The bill senators are debating would require a combined car-truck average of 35 mpg by 2020, with 4 percent annual increases thereafter.