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Senate Opens Debate on Fuel Economy

Automakers Nervous; Only Honda Supports Higher MPG Requirement

By Joe Benton
ConsumerAffairs.com

January 31, 2007

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Automakers disagreed with one another on Capitol Hill as they talked to senators looking for ways to cut vehicle fuel consumption in the U.S. Meanwhile, senators from both parties seemed determined to raise fuel economy standards.

American Honda Motor Co. was the only automaker to also endorse higher standards.

Honda's representative questioned the long-term benefits of building plants and filling stations for E85, fuel that is 85 percent ethanol and he expressed skepticism about prospects for plug-in electric hybrids.

John German, manager of American Honda's environmental and energy analysis division, said that even if dramatic improvements are made in batteries for plug-ins, motorists would not save enough in fuel to justify the vehicle cost for at least six years.

No so, said Beth Lowery, General Motors vice president for energy and environment.

She told the Senate Energy Committee that GM favors revising the corporate average fuel economy program for cars but warned that "it's difficult to pick a number" for where standards should be set.

GM is pushing for increased ethanol use and also has unveiled the Chevrolet Volt that would be a plug-in electric car equipped with a small engine to recharge batteries.

GM wants the government to expand the availability of alternative fuels such as E85 and spend more taxpayer money on battery development.

Senator Lisa Murkowski, R-Alaska, asked whether a car fuel economy standard of 40 mpg by 2017, up from today's 27.5 mpg, is feasible.

Walter McManus, president of the University of Michigan Transportation Research Institute, said the standard is attainable and would force U.S. automakers to become more competitive.

The average fuel economy for a passenger car today is 27.5 miles per gallon, the same level it was in 1985. Some energy experts have concluded that the only way to reduce U.S. reliance on foreign oil imports is to increase vehicle mileage requirements.

Senate Energy Committee Chairman Sen. Jeff Bingaman said the transportation sector is the leading consumer of energy in the United States and accounts for over 80 percent of the increase in forecast higher oil demand.

"Simply put, we are on an unsustainable path," he said.

Sen. Pete Domenici, the top Republican on the panel, said he would also support a boost in vehicle fuel standards.

The Bush Administration wants more ethanol production and the development of so-called plug-in cars to help cut back on U.S. gasoline consumption and reliance on unfriendly foreign oil suppliers.

The United States consumes almost 21 million barrels of oil a day, with three out of every five of those barrels imported. Gasoline use alone accounts for about 45 percent of daily petroleum demand.

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