xcel
12-14-2006, 10:09 PM
Blue-ribbon panel seeks 4 percent annual hike in corporate energy mandates to meet goal. (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061214/AUTO01/612140392/1148)
http://www.cleanmpg.com/photos/data/501/2007_Chevrolet_Tahoe_Hybrid.jpgDavid Shepardson - Detroit News - Dec. 14, 2006
New rules will increase the standard for light pickups, minivans and SUVs to 24 miles per gallon.
WASHINGTON - The heads of several U.S. companies that use large amounts of oil urged Congress Wednesday to adopt tough fuel economy regulations.
The blue-ribbon Energy Security Leadership Council - including the CEOs of FedEx, Dow Chemical, Waste Management Inc. and executive chairman of Southwest Airlines, along with many retired military leaders - called for a 4 percent annual increase in corporate average fuel economy mandates.
With the release of its report, the council met Wednesday with White House officials and members of Congress to push for a new energy bill next year when Democrats take over.
"The nation's oil dependence creates grave economic and security risks that must be addressed immediately," said Frederick W. Smith, FedEx Corp. CEO and president and co-chairman of the council. "Republicans need to accept sensible increases in vehicle fuel efficiency standards."
The group also urged Democrats to accept increased U.S. oil and natural gas exploration, a move it said could boost production by 1.1 million barrels a day.
But its top goal - reducing auto use of oil by 4.3 million barrels of oil per day by 2030 - targets the nation's automobile industry. The commission proposes setting passenger car fuel economy standards based on vehicle size, just as the light truck fleet standards were changed by the Bush Administration.
In March, federal regulators outlined new rules that will increase the standard for light trucks - pickups, minivans and SUVs - to 24 miles per gallon. The standards also regulate heavier SUVs for the first time, which will eventually save 10.7 billion gallons, over the lifetime of the vehicles sold, when fully implemented in 2011.
Attorneys general from 10 states filed suit in May, saying NHTSA didn't raise the requirements enough.
Automakers have long opposed the fuel economy mandates, in part because it forces them at times to sell smaller, more fuel-efficient vehicles at heavy discounts at the end of the year to meet the federal requirements.
Automakers also don't like the massive expense of complying. GM will spend an estimated $1.17 billion between model year 2008 and 2011 to comply with the light truck rules, a government report estimated. Ford will spend $564 million over the same period, and DaimlerChrysler $206 million. Toyota and Honda won't have to spend anything to meet the new standards.
The leadership council's report also called for increasing ethanol production to 30 billion gallons a year by 2030, which could reduce oil consumption by 2 million barrels a day.
The Alliance of Automobile Manufacturers, a trade group that represents General Motors, Ford, DaimlerChrysler and Toyota, among others, said the proposal essentially mirrored current policy.
"We're glad they are endorsing what NHTSA already does. They are balancing lots of concerns and trying to find the sweet spot," said Gloria Bergquist, vice president at the alliance.
http://www.cleanmpg.com/photos/data/501/2007_Chevrolet_Tahoe_Hybrid.jpgDavid Shepardson - Detroit News - Dec. 14, 2006
New rules will increase the standard for light pickups, minivans and SUVs to 24 miles per gallon.
WASHINGTON - The heads of several U.S. companies that use large amounts of oil urged Congress Wednesday to adopt tough fuel economy regulations.
The blue-ribbon Energy Security Leadership Council - including the CEOs of FedEx, Dow Chemical, Waste Management Inc. and executive chairman of Southwest Airlines, along with many retired military leaders - called for a 4 percent annual increase in corporate average fuel economy mandates.
With the release of its report, the council met Wednesday with White House officials and members of Congress to push for a new energy bill next year when Democrats take over.
"The nation's oil dependence creates grave economic and security risks that must be addressed immediately," said Frederick W. Smith, FedEx Corp. CEO and president and co-chairman of the council. "Republicans need to accept sensible increases in vehicle fuel efficiency standards."
The group also urged Democrats to accept increased U.S. oil and natural gas exploration, a move it said could boost production by 1.1 million barrels a day.
But its top goal - reducing auto use of oil by 4.3 million barrels of oil per day by 2030 - targets the nation's automobile industry. The commission proposes setting passenger car fuel economy standards based on vehicle size, just as the light truck fleet standards were changed by the Bush Administration.
In March, federal regulators outlined new rules that will increase the standard for light trucks - pickups, minivans and SUVs - to 24 miles per gallon. The standards also regulate heavier SUVs for the first time, which will eventually save 10.7 billion gallons, over the lifetime of the vehicles sold, when fully implemented in 2011.
Attorneys general from 10 states filed suit in May, saying NHTSA didn't raise the requirements enough.
Automakers have long opposed the fuel economy mandates, in part because it forces them at times to sell smaller, more fuel-efficient vehicles at heavy discounts at the end of the year to meet the federal requirements.
Automakers also don't like the massive expense of complying. GM will spend an estimated $1.17 billion between model year 2008 and 2011 to comply with the light truck rules, a government report estimated. Ford will spend $564 million over the same period, and DaimlerChrysler $206 million. Toyota and Honda won't have to spend anything to meet the new standards.
The leadership council's report also called for increasing ethanol production to 30 billion gallons a year by 2030, which could reduce oil consumption by 2 million barrels a day.
The Alliance of Automobile Manufacturers, a trade group that represents General Motors, Ford, DaimlerChrysler and Toyota, among others, said the proposal essentially mirrored current policy.
"We're glad they are endorsing what NHTSA already does. They are balancing lots of concerns and trying to find the sweet spot," said Gloria Bergquist, vice president at the alliance.