[Congressional Record Volume 151, Number 49 (Thursday, April 21, 2005)]
[Senate]
[Pages S4132-S4135]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Ms. Snowe, Mr. Corzine, Mr. 
        Leahy, Mr. Jeffords, Mr. Schumer, Ms. Collins, Mr. Durbin, and 
        Ms. Cantwell):
  S. 889. A bill to amend title 49, United States Code, to require 
phased increases in the fuel efficiency standards applicable to light 
trucks, to require fuel economy standards for automobiles up to 10,000 
pounds gross vehicle weight, to increase the fuel economy of the 
Federal fleet of vehicles, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.

[[Page S4133]]

  Mrs. FEINSTEIN. Mr. President, I rise today to offer a bill with my 
colleagues Senators Snowe, Corzine, Leahy, Cantwell, Collins, Durbin, 
Schumer and Jeffords to close the SUV loophole.
  This bill would increase Corporate Average Fuel Economy (CAFE) 
standards for SUVs and other light duty trucks. It would close the 
``SUV Loophole'' and require that SUVs meet the same fuel efficiency 
standards as passenger cars by 2011.
  Crude oil prices remain above $50/barrel. On April 1, 2005, crude oil 
prices hit a record high of $57.70/barrel. Prices at the gas pump 
continue to soar as well. Today, the average price for regular gasoline 
was $2.24 per gallon. In California, the average price is almost $2.60.
  This is not a problem we can drill our way out of. Global oil demand 
is rising. China imports more than 40 percent of its record 6.4 
million-barrel-per-day oil demand and its consumption is growing by 7.5 
percent per year, seven times faster than the U.S.
  India imports approximately 70 percent of its oil, which is projected 
to rise to more than 90 percent by 2020. Their rapidly growing 
economies are fueling their growing dependence on oil--which makes 
continued higher prices inevitable.
  The most effective step we can take to reduce gas prices is to reduce 
demand. We must use our finite fuel supplies more wisely.
  This legislation is an important first step to limit our nation's 
dependence on oil and better protect our environment.
  If implemented, closing the SUV Loophole would: save the U.S. 1 
million barrels of oil a day and reduce our dependence on oil imports 
by 10 percent.
  Prevent about 240 million tons of carbon dioxide--the top greenhouse 
gas and biggest single cause of global warming from entering the 
atmosphere each year.
  Save SUV and light duty truck owners hundreds of dollars each year in 
gasoline costs.
  CAFE Standards were first established in 1975. At that time, light 
trucks made up only a small percentage of the vehicles on the road, 
they were used mostly for agriculture and commerce, not as passenger 
cars.
  Today, our roads look much different, SUVs and light duty trucks 
comprise more than half of the new car sales in the United States. As a 
result, the overall fuel economy of our Nation's fleet is the lowest it 
has been in two decades, because fuel economy standards for these 
vehicles are so much lower than they are for other passenger vehicles.
  The bill we are introducing today would change that. SUVs and other 
light duty trucks would have to meet the same fuel economy requirements 
by 2011 that passenger cars meet today.
  The National Highway Traffic Safety Administration, NHTSA, has 
proposed phasing in an increase in fuel economy standards for SUVs and 
light trucks under the following schedule: by 2005, SUVs and light 
trucks would have to average 21.0 miles per gallon; by 2006, SUVs and 
light trucks would have to average 21.6 miles per gallon; and by 2007, 
SUVs and light trucks would have to average 22.2 miles per gallon.
  In 2002, the National Academy of Sciences, NAS, released a report 
stating that adequate lead time can bring about substantive increases 
in fuel economy standards. Automakers can meet higher CAFE standards if 
existing technologies are utilized and included in new models of SUVs 
and light trucks.
  In 2003, the head of the National Highway Traffic Safety 
Administration said he favored an increase in vehicle fuel economy 
standards beyond the 1.5-mile-per-gallon hike slated to go into effect 
by 2007. ``We can do better,'' said Jeffrey Runge in an interview with 
Congressional Green Sheets. ``The overriding goal here is better fuel 
economy to decrease our reliance on foreign oil without compromising 
safety or American jobs,'' he said.
  With this in mind, we have developed the following phase-in schedule 
which would follow up on what NHTSA has proposed for the short term and 
remain consistent with what the NAS report said is technologically 
feasible over the next decade or so: by model year 2008, SUVs and light 
duty vehicles would have to average 23.5 miles per gallon; by model 
year 2009, SUVs and light duty vehicles would have to average 24.8 
miles per gallon; by model year 2010, SUVs and light duty vehicles 
would have to average 26.1 miles per gallon, by model year 2011, SUVs 
and light duty vehicles would have to average 27.5 miles per gallon.
  This legislation would do two other things: it would mandate that by 
2008 the average fuel economy of the new vehicles comprising the 
Federal fleet must be 3 miles per gallon higher than the baseline 
average fuel economy for that class. And by 2011, the average fuel 
economy of the new federal vehicles must be 6 miles per gallon higher 
than the baseline average fuel economy for that class.
  The bill also increases the weight limit within which vehicles are 
bound by CAFE standards to make it harder for automotive manufacturers 
to build SUVs large enough to become exempted from CAFE standards. 
Because SUVs are becoming larger and larger, some may become so large 
that they will no longer qualify as even SUVs anymore.
  We are introducing this legislation because we believe that the 
United States needs to take a leadership role in the fight against 
global warming.
  We have already seen the potential destruction that global warming 
can cause in the United States.
  Snowpacks in the Sierra Nevada are shrinking and will almost entirely 
disappear by the end of the century, devastating the source of 
California's water.
  Eskimos are being forced inland in Alaska as their native homes on 
the coastline are melting into the sea.
  Glaciers are disappearing in Glacier National Park in Montana. In 100 
years, the park has gone from having 150 glaciers to fewer than 30. And 
the 30 that remain are two-thirds smaller than they once were.
  Beyond our borders, scientists are predicting how the impact of 
global warming will be felt around the globe.
  It has been estimated that two-thirds of the glaciers in western 
China will melt by 2050, seriously diminishing the water supply for the 
region's 300 million inhabitants. Additionally, the disappearance of 
glaciers in the Andes in Peru is projected to leave the population 
without an adequate water supply during the summer.
  The United States is the largest energy consumer in the world, with 4 
percent of the world's population using 25 percent of the planet's 
energy.
  And much of this energy is used in cars and light trucks: 43 percent 
of the oil we use goes into our vehicles and one-third of all carbon 
dioxide emissions come from our transportation sector.
  The U.S. is falling behind the rest of the world in the development 
of more fuel efficient automobiles. Quarterly auto sales reflect that 
consumers are buying smaller more fuel efficient cars and sales of the 
big, luxury vehicles that are the preferred vehicle of the American 
automakers have dropped significantly.
  Even SUV sales have slowed. First quarter 2005 deliveries of these 
vehicles are down compared to the same period last year--for example, 
sales of the Ford Excursion is down by 29.5 percent, the Cadillac 
Escalade by 19.9 percent, and the Toyota Sequoia by 12.6 percent.
  On the other hand, the Toyota Prius hybrid had record sales in March 
with a 160.9 percent increase over the previous year.
  The struggling U.S. auto market cannot afford to fall behind in the 
development of fuel efficient vehicles. Our bill sets out a reasonable 
time frame for car manufacturers to design vehicles that are more fuel 
efficient and that will meet the growing demand for more fuel efficient 
vehicles.
  We can do this, and we can do this today. I urge my colleagues to 
support this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 889

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Automobile Fuel Economy Act 
     of 2005''.

[[Page S4134]]

     SEC. 2. INCREASED AVERAGE FUEL ECONOMY STANDARD FOR LIGHT 
                   TRUCKS.

       (a) Definition of Light Truck.--Section 32901(a) of title 
     49, United States Code, is amended--
       (1) in each of paragraphs (1) through (14), by striking the 
     period at the end and inserting a semicolon;
       (2) in paragraph (15), by striking the period at the end 
     and inserting ``; and'';
       (3) by redesignating paragraphs (12) through (16) as 
     paragraphs (13) through (17), respectively; and
       (4) by inserting after paragraph (11) the following:
       ``(12) `light truck' has the meaning given that term in 
     regulations prescribed by the Secretary of Transportation in 
     the administration of this chapter;''.
       (b) Requirement for Increased Standard.--Section 32902(a) 
     of title 49, United States Code, is amended--
       (1) by inserting ``(1)'' after ``AUTOMOBILES.--'';
       (2) by striking ``The Secretary'' and inserting ``Subject 
     to paragraph (2), the Secretary''; and
       (3) by adding at the end the following :
       ``(2) The average fuel economy standard for light trucks 
     manufactured by a manufacturer may not be less than 27.5 
     miles per gallon, except that the average fuel economy 
     standard for light trucks manufactured by a manufacturer in a 
     model year before model year 2011 and--
       ``(A) after model year 2008 may not be less than 23.5 miles 
     per gallon;
       ``(B) after model year 2009 may not be less than 24.8 miles 
     per gallon; and
       ``(C) after model year 2010 may not be less than 26.1 miles 
     per gallon.''.
       (c) Applicability.--Section 32902(a)(2) of title 49, United 
     States Code, as added by subsection (b)(3), shall not apply 
     with respect to light trucks manufactured before model year 
     2009.

     SEC. 3. FUEL ECONOMY STANDARDS FOR AUTOMOBILES UP TO 10,000 
                   POUNDS GROSS VEHICLE WEIGHT.

       (a) Vehicles Defined as Automobiles.--Section 32901(a)(3) 
     of title 49, United States Code, is amended by striking 
     ``rated at--'' and all that follows and inserting ``rated at 
     not more than 10,000 pounds gross vehicle weight.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2011.

     SEC. 4. FUEL ECONOMY OF THE FEDERAL FLEET OF VEHICLES.

       (a) Definitions.--In this section--
       (1) the term ``class of vehicles'' means a class of 
     vehicles for which an average fuel economy standard is in 
     effect under chapter 329 of title 49, United States Code;
       (2) the term ``executive agency'' has the meaning given the 
     term in section 4(1) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 403(1)); and
       (3) the term ``new vehicle'', with respect to the fleet of 
     vehicles of an executive agency, means a vehicle procured by 
     or for the agency after September 30, 2007.
       (b) Baseline Average Fuel Economy.--The head of each 
     executive agency shall determine the average fuel economy for 
     all of the vehicles in each class of vehicles in the agency's 
     fleet of vehicles in fiscal year 2006.
       (c) Increase of Average Fuel Economy.--The head of each 
     executive agency shall manage the procurement of vehicles in 
     each class of vehicles for that agency to ensure that--
       (1) not later than September 30, 2008, the average fuel 
     economy of the new vehicles in the agency's fleet of vehicles 
     in each class of vehicles is not less than 3 miles per gallon 
     higher than the baseline average fuel economy determined for 
     that class; and
       (2) not later than September 30, 2011, the average fuel 
     economy of the new vehicles in the agency's fleet of vehicles 
     in each class of vehicles is not less than 6 miles per gallon 
     higher than the baseline average fuel economy determined for 
     that class.
       (d) Calculation of Average Fuel Economy.--For purposes of 
     this section--
       (1) average fuel economy shall be calculated in accordance 
     with guidance prescribed by the Secretary of Transportation 
     for the implementation of this section; and
       (2) average fuel economy calculated under subsection (b) 
     for an agency's vehicles in a class of vehicles shall be the 
     baseline average fuel economy for the agency's fleet of 
     vehicles in that class.

  Ms. SNOWE. Mr. President, I rise today to join my esteemed colleague, 
Senator Feinstein as the lead cosponsor for the Feinstein-Snowe 
legislation that will rectify an unacceptable inequity when it comes to 
obtaining greater fuel economy for the vehicles we choose to drive. 
This bill allows us to take a road currently less traveled towards 
decreasing our Nation's need to import greater and greater amounts of 
foreign oil from the most volatile area of the globe, and at the same 
time, decrease polluting vehicle emissions that affect both the 
public's and the planet's health.
  What is clear, on the eve of Earth Day, is that the Federal 
Government must lead in ensuring consumers a choice of vehicles with 
higher fuel economy, an appropriate degree of safety, and a minimal 
impact on our environment. Closing what is called the SUV loophole that 
allows popular SUVs and other light trucks to get only 20.7 miles per 
gallon while other passenger cars need to meet a 27.5 mile per gallon 
threshold, will help us meet these environmental, economic, and 
national security goals, and I think it's an idea whose time has long 
since arrived.
  My colleague from California has been a passionate advocate of this 
proposal, and I'm proud to work with her again in introducing our 
practical, attainable bill that can garner the kind of broad support 
necessary to address this national imperative this year. Now I know 
when we first introduced our plan in 2001, some believed it was too 
much too soon, while others felt it didn't go far enough. And around 
here, that's usually a sign you're onto something. But can anyone 
honestly say we're better off today without nothing? That we're in 
better shape because we failed to pass what is possible four years ago?
  This legislation is a critical first step to provide real relief from 
skyrocketing gas prices that have reached over $2 a gallon all across 
the county are estimated to stay high throughout the year. The increase 
in Corporate Average Fuel Economy, or CAFE, standards for the light 
trucks category--mostly SUVs and minivans--will ultimately decrease our 
need for foreign oil. I would like to bring to my colleagues' attention 
that every hour, $28 million leaves our country to pay for the Nation's 
unquenched thirst for foreign oil. When it comes to the fuel economy of 
America's sport utility vehicles, surely we can do better for our 
pocketbooks, for our planet, and for our promise for the future.
  It is unacceptable to me that a developing country like China has put 
in place new regulations that are more stringent than U.S. CAFE 
standards to promote better fuel. economy in their vehicles and rein in 
that country's energy consumption. Like the U.S., China greatly depends 
upon foreign oil. However, China's GDP per capita was only 
approximately $860 in 2004 while the U.S. was at $35,000 per person. 
The standards that go into force in China in July of 2005, require that 
all new passenger cars get two miles per gallon more than U.S. CAFE 
standards. And SUVs will have to achieve 1.7 to 2.7 miles per gallon 
more depending on the make. By 2008, large cars in China will have to 
get 30.4 miles per gallon. China, very aware of their rising oil 
imports, skyrocketing oil prices, and their air pollution, are finding 
a way to achieve greater fuel economy, but the U.S. cannot? This makes 
absolutely no sense to me.

  Right now, all our vehicles combined consume over 40 percent of our 
oil, while coughing up over 20 percent of U.S. carbon monoxide 
emissions--the greenhouse gas linked to global climate change. To put 
this in perspective, the amount of carbon monoxide emission just from 
U.S. vehicles alone is the equivalent of the fourth highest carbon 
monoxide emitting country in the world. Given these stunning numbers, 
how can we continue to allow SUVs to spew three times more pollution 
into the air than passenger cars?
  Just think for a moment how much the world has changed 
technologically over the past 25 years. We've seen the advent of the 
home computer and the information age. Computers are now running our 
automobiles, and Global Positioning System devices are guiding drivers 
to their destinations. Are we to believe that technology couldn't have 
also helped those drivers burn less fuel in getting there? Are we going 
to say that the whole world has transformed, but America doesn't have 
the where-with-all to make SUVs that get better fuel economy?
  Well, I don't believe it, and neither does the National Academy of 
Sciences that issued a report in 2001 in response to Congress' request 
the previous year that the NAS study the issue. They concluded that it 
was possible to achieve a more than 40 percent improvement particularly 
in light truck and SUV fuel economy over a 10-15 year period--and that 
technologies exist now for improving fuel economy. That was 3\1/2\ 
years ago.
  I don't want America's SUV manufacturers to be ``the industry that 
time forgot?'' and history clearly shows that the Federal Government 
must play a role in ensuring that consumers have a choice in vehicles 
with high degrees of fuel economy, an appropriate degree of

[[Page S4135]]

safety and a minimal impact on our environment. As the 2001 NAS Report 
also stated, ``Because of the concerns about greenhouse gas emissions 
and the level of oil imports, it is appropriate for the Federal 
Government to ensure fuel economy levels beyond those expected to 
result from market forces alone.'' How can we do anything less?
  So many questions that we already have the answers to but not the 
initiative or will to do so. Closing the SUV loophole will help us 
achieve so many goals, and it's an idea whose time has long since 
arrived.
  I ask for my colleagues' support for closing the SUV loophole, and I 
thank the Chair.

                          ____________________