[Congressional Record Volume 143, Number 31 (Wednesday, March 12, 1997)]
[Senate]
[Page S2219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page S2219]]



                             CAFE STANDARDS

 Mr. ABRAHAM. Mr. President, I rise today to speak once again 
on the matter of corporate average fuel economy standards. Last month, 
12 Senators, from both sides of the aisle, joined with me to introduce 
legislation--S. 286--to return to Congress the authority for changing 
CAFE standards.
  This issue is attracting an increased amount of attention as 
Americans begin to understand the consequences of increased fuel 
economy standards: less consumer choice, more dangerous vehicles, and 
reduced competitiveness for domestic automobile manufacturers. Perhaps, 
Mr. President, some of these repercussions could be easier to accept if 
the supposed benefits of increased CAFE standards were ever realized. 
Unfortunately, this has not occurred. In the two decades since CAFE 
standards were first mandated, this Nation's oil imports have grown to 
account for nearly half our annual consumption and the average number 
of miles driven by Americans has increased.
  Mr. President, an excellent editorial in yesterday's Detroit News 
illustrates the problems associated with increased CAFE standards, and 
I ask that this article be inserted in the Record immediately following 
my remarks.
  The article follows:

                              CAFE Society

       Vehicle fuel efficiency standards represent regulation at 
     its worst: unelected bureaucrats endangering the public at 
     considerable cost while failing to achieve the promised 
     result. Unfortunately, eliminating the existing standards 
     appears to be politically unfeasible. But Congress should 
     seize the opportunity recently provided by members of the 
     Michigan delegation to halt new, more punishing mileage 
     requirements.
       The issue has taken on renewed urgency with news that the 
     Big Three will fail to meet this year's fuel economy 
     standards--and thus face stiff penalties that would place 
     them at a competitive disadvantage. Fleet mileage averages 
     have fallen with brisk sales of light trucks, sport utility 
     vehicles and vans, which comprise a whopping 44 percent of 
     the new vehicle market--up from 20 percent in 1980.
       That consumers prefer less fuel-efficient vehicles proves 
     how the Corporate Average Fuel Economy (CAFE) law has failed 
     to reduce U.S. dependence on foreign oil. Nonetheless, the 
     Clinton administration favors stricter standards convinced 
     that increased fuel efficiency will somehow save us from 
     environmental apocalypse.
       Economic catastrophe would likely hit first. Fortunately, 
     Michigan Sen. Spencer Abraham has introduced legislation to 
     freeze mileage standards at current levels, while requiring 
     Congress to approve any future increase. A companion measure 
     has been introduced in the House by Rep. Fred Upton, the 
     Benton Harbor-St. Joseph Republican. Both bills warrant swift 
     passage.
       The current federal standard is 27.5 miles per gallon for 
     passenger cars and 20.7 for light trucks. Congress required 
     car standards in the Energy Policy and Conservation Act of 
     1975. They left light truck levels to be set by the National 
     Highway Traffic Safety Administration.
       The fact is, consumers respond most directly to market 
     signals, not government dictates. Oil is cheap and plentiful. 
     It is no surprise, then, that the top 10 most fuel efficient 
     cars represent less than 1 percent of overall car and light 
     truck sales.
       If anything, higher fuel efficiency invites more driving, 
     not less. The average American drove about 9,000 miles per 
     year in 1980, but 11,400 in 1995.
       Absent an oil crisis, the Clinton administration is left to 
     argue for stricter CAFE standards on environmental grounds. 
     But its case is muddy at best--and deceitful at worst. All 
     new cars must meet the same emission standards regardless of 
     CAFE requirements. Tightening CAFE requirements would do 
     nothing to temper global warming.
       Stricter standards would cost a good many Americans their 
     jobs--and lives. European and Japanese automakers long have 
     catered to more mileage-conscious markets, which has kept 
     their fleet mileage comparatively high. Tightening CAFE 
     standards would require costly re-engineering by the Big 
     Three, paring the profit margins on their best-selling and 
     most profitable products.
       Meanwhile, the vehicle downsizing required to boost mileage 
     would only increase highway fatalities and injuries. Current 
     standards are responsible for an estimated 3,000 additional 
     highway deaths and innumerable injuries each year.
       For two years, Michigan lawmakers have withheld funds that 
     would otherwise have enabled regulators to increase CAFE 
     standards. It makes more sense to rescind NHTSA's authority 
     to change CAFE requirements. That done, Michigan's 
     congressional delegation can turn its attention to outright 
     repeal of what ranks among society's most costly and 
     dangerous regulations.

                          ____________________