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New CAFE Standards Pass Congress


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Associated Press Story

Dems Reach Deal on Energy Bill

By H. JOSEF HEBERT – 11 hours ago


WASHINGTON (AP) — Congressional Democrats reached a compromise late Friday to boost automobile fuel economy by 40 percent, clearing the way for a House vote probably next week on an energy bill that Democratic leaders would like to send to President Bush before Christmas.


The agreement came after House Speaker Nancy Pelosi reached an accord with Rep. John Dingell, D-Mich., a longtime protector of the auto industry that dominates his home state, to ease the impact of the new fuel economy requirements.


"A compromise has been reached on automobile fuel efficiency standards," Dingell announced in a statement.


Automakers would be required to meet an industrywide average of 35 miles per gallon for cars and light trucks, including SUVs, by 2020, the first increase by Congress in car fuel efficiency in 32 years.


(cont'd on link)

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It hasn't passed Congress but the Democrats have reached a compromise among themselves. The House will supposedly vote next week and then send the bill to the Senate after passing. The Senate is usually a tougher nut to crack because a minority can effectively stall a bill unless a 2/3 majority votes to close debate.


Unfortunately ethanol is also featured prominently in the new bill.

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First, I do not know what ethanol provisions are in the bill making its rounds at the moment. But why are you dismayed that ethanol is featured in a automotive fuel economy bill?


I really don't see this bill as nearly as bad as the enviroweenies really wanted. 13 years to push CAFE from 27.5 to 35 just is not all that bad. There are cars already in existance that have no problem meeting that. Hillary wants 50. Thats bad.


I am more concerned with the CO2 legislation move about in CA that is bound to effect the rest of the country.

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Thanks Moab, for the correction. I'm lost in politics, but like to keep information out there.

I don't see how they can consider Ethanol a good consideration for an environmental provision. It must be in there more for the Energy Planning side, where they are trying to seperate us from "foreign" oil. either way, being less efficient it makes the gas mileage bad enough in comparison to gasoline, that I imagine that it actually is a wash or worse for the environment.

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Here's Ford's Take on the new legislation. Please note bolded points, as they are significant.



December 20, 2007



To: All Ford and Lincoln Mercury Dealers

Subject: EFC0701087DC Message from Ford Gov't Affairs on Energy Bill


After many months of debate, the United States Senate took a significant step last week towards the enactment of CAFE legislation by passing a compromise Energy Bill (H.R. 6) by a vote of 86-8. This week, the United States House of Representatives passed the same Energy Bill by a vote of 314-100 and President Bush signed the bill into law on Wednesday, Dec. 19.


We supported this compromise legislation, which although tough, will be achievable. We are committed to doing our part to reduce dependence on foreign oil and greenhouse gases.


We want to thank you, our dealers, for all of your hard work on this critical legislation. Your voices helped bring about the enactment of this new law which will increase fuel efficiency by 40 percent by 2020.


As you may have heard, the overall stringency target in the bill is a 35 mpg by 2020 industry-wide standard, but with a number of flexibility mechanisms to make it more achievable. There was great success in improving the original Senate legislation by making the following changes:


Continuing to require separate standards for cars and trucks; Eliminating the 4 percent per year CAFE increase between 2020 and 2030;

Ensuring that an attribute-based "reformed CAFE" system will be used for cars as well as trucks;

Extending flexible fuel vehicle CAFE credits beyond current law (1.2 mpg until 2014; then a phase down through 2020);

Securing additional CAFE compliance mechanisms, such as allowing the transfer of CAFE credits between car and truck fleets, and

Adding some financial incentives to help existing plants retool and add technology.

The industry achieved an additional victory as well, by altering a harmful provision in the original Senate bill to single out work trucks between 8500 and 10,000 lbs for new fuel economy standards. Instead, the final bill treats them the same as other medium and heavy duty trucks and requires a study before new fuel economy requirements are imposed ( likely not until MY 2016).



While the final bill is not perfect, it is vastly improved as a result of your efforts. We deeply appreciate all of your help and support. This was a great team effort by so many – and the voices of our dealers were critical throughout this long and challenging process. Working together, we achieved nearly all of our objectives and eliminated the worst provisions in the original legislation.


As we look forward, we must continue our cooperative efforts to make sure that, as Congress intended, there is only one nationwide fuel economy program administered by one government agency -- the U.S. Department of Transportation.


We look forward to working with you in the future. We wish you and your families all the best this holiday season.


Ziad Ojakli

Group Vice President

Government and Community Affairs Bruce Andrews

Vice President

Government Affairs

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