Feds sued over fuel standards.

[xcel]

Ten states and D.C. call new benchmarks a 'sham and a gift to the auto industry.

Peter Valdes-Dapena - CNNMoney.com - May 2, 2006



NEW YORK (CNNMoney.com) - Ten states, along with the District of Columbia, have filed a lawsuit against the National Highway Traffic Safety Administration, calling the new fuel efficiency standards a "sham," the attorney general for Connecticut said Tuesday.

The suit, filed in the Ninth District Court of Appeals in San Francisco, charges the federal agency with broadening its definition of a "light truck" in an effort to include more fuel efficient vehicles, such as vans and SUVs, meaning that real fuel efficiency standards would not be impacted, according to Connecticut Attorney General Richard Blumenthal's office.

"The supposed upgrade in fuel economy standards is a complete sham and a gift to the auto industry," Blumenthal said in a statement as part of his state's participation in the lawsuit. "At a time of soaring gas prices and rising concern about global warming, these so-called efficiency standards mock consumers, common sense and Congress."

A call to the National Highway Traffic Safety Administration (NHTSA) by CNNMoney.com was not immediately returned.

The states in the suit also contend that the new standard would prevent them from regulating carbon dioxide emissions, Blumenthal's office said.

In March, the new NHTSA said it would raise fuel economy standards from 22 miles per gallon to 24 miles per gallon for sport utility vehicles, pickups and vans between the years 2008 and 2011.

Just last week President Bush called for legislation to raise fuel-efficiency standards in passenger cars in response to rising oil and gasoline prices.

[Sledge]

CAFE is a nice idea that just won't work in the real world. Example: BMW. They haven't met CAFE standards for years and years. They get slapped with a fine every year. No big deal for them as they just pay it and move on with life.

The way to get the US fleet MPG up is to give incentives to those buying high MPG cars. Create an incentive framework that moves as time goes on. A hybrid purchase this year would get $x back. Next year it will be a little less because technology has moved on and better, more fuel efficient cars can be made. When all new technology arrives in showrooms (like an H2 FC), it gets a big incentive.

[Chuck]

I would not totally give up on CAFE. Including the H1, H2, etc...increasing the FE standards for light trucks in an honest manner would do some good.

The biggest problem with CAFE is the light truck loophole that was allowed to get the blind eye as pickups and SUVs took more market share. If the CAFE and safety standards were increased, gas pigs would not be so commonplace.

I can see it now - strict standards on light trucks to the point that few SUVs are larger than the FEH - then a new market is born - bling bling farm tractors.

[Sledge]

But if you choose not to meet CAFE and all you have to do is pay a fine that can be easily passed on to your customers, what's the point?

[Chuck]

Originally Posted by Sledge

But if you choose not to meet CAFE and all you have to do is pay a fine that can be easily passed on to your customers, what's the point?

This is my question - is BMW the exception?

If only a few luxury vehicles just tack on the gas guzzler tax, that's not too bad. If the jumbo SUV's do like BMW - we have a problem. I'd think Detroit would not want to compete with a gas guzzler tax on top of health and retirement costs.

I'll conceed that GM might do such a thing, given their obsession with SUVs....

[tbaleno]

I think any company willing to pay a fine to make a guzzler would likely get a black eye from all the bad press.

CAFE Fines:

http://money.cnn.com/2006/01/06/Autos/cafe_fines/

Several automakers missed the mark, but they were very close. If we raised the CAFE numbers then suddenly those 3 to 8 million dollar fines could baloon into hundreds of millions of dollars. That's something that would inspire them to produce more fuel efficient vehicles, or they'd have to raise the prices on their cars, which of course decreases sales and revenue. CAFE really does work, it's just not set at a high level right now.

Here's the complete list, if you're interested:

http://www.nhtsa.gov/cars/rules/CAFE...D-SUMMARY.html

[xcel]

Hi Brandon:

___Instead of the manufacturers/consumers paying the fine on the sticker or via purchase price, I would like to see those individuals purchasing an automobile that does not meet a preset CAFÉ’ FE number pay a separate check at time of purchase to the US Government with no tax deduction or credit possibilities. A separate check to be paid in full before that car leaves the lot would make many more think long and hard before taking that non-fuel efficient car/truck/SUV home. Sledge’s reverse side of that equation is a great idea as well. Those purchasing a fuel efficient automobile would be given a credit to be sent via Mail after maybe 2 to 3 months. Keeping the CAFÉ’ rebate separate from the purchase transaction may keep the car dealers from convincing prospective buyers to add on needless options and accessories or worse yet, a slightly less FE automobile to begin with …

___I also want to add that last year when Iowa passed its energy conserving E10 mandate, the legislative body raised the state’s maximum highway speed limits at the same time. What kind of message did that send? If the states were truly serious about liquid fuel consumption reduction, they would/should be considering 55 mph limits as Massachusetts’s is doing from my understanding rather then suing the NHTSA or whatever government body is in charge of CAFÉ’ in the future.

___Good Luck

___Wayne