Majority leader: Senate will adopt tough mpg rules

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- Senate Majority Leader Harry Reid vowed Monday to quickly pass a massive increase in average fuel economy standards, saying the debate is "over."

His comments came as the Senate takes up a Democratic bill that would raise CAFE standards for new cars and trucks to 35 miles per gallon by 2020, with 4 percent increases annually after that.

"I know the auto industry is still wavering on this issue," Reid told a Washington think tank. "I met with the CEOs of the Big Three automakers last week, and here is what I told them: The debate on raising CAFE standards is over. It will happen."

Senators opened debate briefly on the Democratic energy measure Monday, with plans to return to it today. Sen. Pete Domenici, R-N.M., said the measure would "compel our automakers to do more."

Reid said the 35 mpg standard isn't "aggressive" and hoped the Senate would be able to pass it with the votes of nine new Democratic members that could "put us over the hump."

Debate on the bill is expected to last several weeks.

The increase amounts to a 40 percent jump over the current 25 mpg average fuel economy requirement. Fuel efficiency requirements for passenger cars have remained unchanged for more than two decades.

Automakers have said that dramatically raising the standards could force them to stop making some of their biggest, most profitable models. They cite a Bush administration analysis that estimated a similar measure would cost the companies $114 billion to comply, including $85 billion for U.S. automakers.

Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers, a trade group that represents automakers including Detroit's Big Three and Toyota Motor Corp., criticized Reid's comments.

He's "really burying the headline," she said, noting that annual 4 percent increases would require automakers to average 52 mpg by 2030. To achieve that average across all vehicle types, the fuel economy of cars would have to hit an "astronomical" level, she said, because the average would be weighed down by heavier trucks that need to be able to haul loads and have towing capacity.

Reid echoed what many of his colleagues have argued: Detroit's successful efforts to block fuel economy increases have actually harmed automakers.

"Perhaps if they had joined us instead of fighting us these last 20 years, they might not be in the financial mess they're in today," Reid said. "But now is their chance to do the right thing -- both for their bottom line and for the American people. And if President Bush is truly serious about raising CAFE, he'll help us pass this bill."

Reid acknowledged that the CAFE regulation is the most "controversial" aspect of the Democrats' energy bill, and invoked auto pioneer Henry Ford and Thomas Edison in his call for raising the standards.

"In 1908, Henry Ford introduced the Model T, and Americans took to the roads," Reid said. "If we could build an automobile that connected millions of travelers -- and we did -- surely today we can build one that runs on renewable power."

Sens. Carl Levin, D-Detroit, Debbie Stabenow, D-Lansing, and two or three members of the Senate Commerce committee are expected to introduce an alternative fuel economy proposal this week with softer goals -- requiring light trucks to average 30 mpg by 2025 and passenger cars 36 mpg by 2022.

Also Wednesday, the House Ways and Means committee may consider a proposal to end the so-called "gas guzzler" business tax break for light trucks over 6,000 pounds.

Other provisions of the Senate energy bill include:

• Setting new energy efficiency standards for lighting, appliances and water use.

• Making federal buildings and vehicles more efficient.

• Punishing companies that price gouge or manipulate supply to boost profits.

• Providing research funds for carbon sequestration -- or carbon capture and storage -- which could prevent emissions from existing power sources from polluting the air.

You can reach David Shepardson at (202) 662-8735 or dshepardson@detnews.com.