Bush Administration Submits Draft Fuel Economy Bill

WASHINGTON DC February 7, 2007; Ken Thomas writing for the AP reported that the Bush administration proposed upgrading fuel economy standards for passenger cars on Wednesday, starting a process that will bring close scrutiny from automakers, environmental groups and key members of Congress.

The legislation would give the administration the ability to change the federal fuel efficiency system for passenger cars, which currently requires an automaker's fleet to have an average of 27.5 miles per gallon.

President Bush was unsuccessful last year in seeking similar changes to the passenger car system, which has remained virtually unchanged for the past two decades. The administration wants to change the system to bring more flexibility and take into account the vehicle's attributes, such as its size.

The approach would be similar to recent reforms to fuel efficiency rules for pickup trucks, sport utility vehicles and vans, which sets standards based on the vehicle's dimensions.

The draft legislation includes the creation of a "credit trading" program, which would allow automakers the ability to buy credits from competitors to meet the new standards. The concept, which has received a frosty reception from the industry, would likely favor Japanese automakers such as Honda Motor Co. and Toyota Motor Corp., which have higher fleetwide fuel economy levels.

The White House has outlined plans to reduce gasoline consumption by 20 percent by 2017 by increasing alternative fuels and reforming fuel economy standards. The Bush administration has called for a 4 percent annual increase on gas-mileage requirements.

Some members of Congress have been reluctant to give the Bush administration the right to change the system. Many lawmakers have called for a specific numerical increase in the fuel efficiency standards.