[House Report 109-475]
[From the U.S. Government Publishing Office]



From the House Reports Online via GPO Access
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 109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-475

======================================================================
 
                CAFE STANDARDS FOR PASSENGER AUTOMOBILES

                                _______
                                

  May 22, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Barton of Texas, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5359]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5359) to amend the automobile fuel economy 
provisions of title 49, United States Code, to authorize the 
Secretary of Transportation to set fuel economy standards for 
passenger automobiles based on one or more vehicle attributes, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     4
Committee Oversight Findings.....................................     8
Statement of General Performance Goals and Objectives............     8
New Budget Authority, Entitlement Authority, and Tax Expenditures     8
Committee Cost Estimate..........................................     8
Congressional Budget Office Estimate.............................     8
Federal Mandates Statement.......................................    10
Advisory Committee Statement.....................................    10
Constitutional Authority Statement...............................    10
Applicability to Legislative Branch..............................    10
Section-by-Section Analysis of the Legislation...................    10
Changes in Existing Law Made by the Bill, as Reported............    11
Dissenting Views.................................................    13

                          Purpose and Summary

    H.R. 5359 is designed to provide the Secretary of 
Transportation with the authority to reform the fuel economy 
program for passenger automobiles based on one or more vehicle 
attributes related to fuel economy.

                  Background and Need for Legislation

    In 1975, in response to the 1973-74 Arab oil embargo, 
Congress passed the ``Energy Policy Conservation Act'' (P.L. 
94-163) which added an automobile efficiency title to the Motor 
Vehicle Information and Cost Savings Act and established 
Corporate Average Fuel Economy (CAFE) standards for passenger 
cars and light trucks.
    The CAFE law requires each manufacturer selling vehicles in 
the United States to achieve a harmonically-averaged level of 
fuel economy, or miles per gallon (mpg), for all specified 
vehicles manufactured in a given model year (MY). The statute 
distinguishes passenger cars from light trucks and requires 
separate calculations for both.
    The Secretary of Transportation has delegated authority 
over the CAFE program to the Administrator of the National 
Highway Traffic Safety Administration (NHTSA). By rule, NHTSA 
sets the CAFE standard for light trucks, which is currently at 
22.2 for the 2007 MY. The current standard for passenger cars 
is 27.5 mpg which is set by statute.
    In setting a CAFE standard, NHTSA must set standards at the 
``maximum feasible'' level considering four factors: (1) 
technological feasibility; (2) economic practicability; (3) the 
effect of other standards on fuel economy; and (4) the need of 
the nation to conserve energy. NHTSA has also considered safety 
and the effects on employment in setting a maximum achievable 
CAFE standard.
    While NHTSA has clear authority to set CAFE standards for 
light trucks, its authority to set passenger car CAFE standards 
is moreambiguous. The passenger car CAFE standard is currently 
set in statute at 27.5 mpg (49 U.S.C. Sec. 32902(b)). The statute 
provides that if NHTSA amends the standard above 27.5 mpg or below 26.0 
mpg, either Body of Congress may exercise a legislative veto to prevent 
the amended standard from becoming law. However, a U.S. Supreme Court 
case, INS v. Chadha, 462 U.S. 919 (1983), found the legislative veto to 
be unconstitutional. There is no severability clause contained in the 
Energy Policy Conservation Act of 1975. Following the Chadha decision, 
NHTSA did not raise the fuel economy standards for passenger cars above 
27.5 mpg or below 26.0 mpg, so the issue of whether NHTSA has the 
statutory authority to amend the fuel economy standards for such 
vehicles has not been litigated.
    Today's passenger car CAFE standard was set in statute at 
27.5 mpg in 1990. Passenger car standards were established for 
MY 1978 (18 mpg); MY 1979 (19 mpg); MY 1980 (20 mpg); and for 
MY 1985 and thereafter (27.5 mpg). For the post-1985 period, 
Congress provided for the continued application of the 27.5 mpg 
standard for passenger cars, but gave the Department of 
Transportation the authority to set higher or lower standards 
(not above 27.5 mpg or below 26.0 mpg), with both Bodies of 
Congress retaining the ability to ``veto'' the rulemaking. From 
1986 through 1989, the passenger car standards were actually 
lowered because fuel prices fell along with consumer demand for 
vehicles with high fuel economy.
    In March 2006, NHTSA reformed the light truck CAFE program. 
Between the 2008-2010 model years, light truck manufacturers 
may comply with the CAFE law under the preexisting CAFE 
program, or under the reformed program. Beginning in MY 2011, 
all light truck manufacturers must comply with the reformed 
CAFE program. Under the reformed CAFE program, fuel economy 
standards are restructured so that they are based on a measure 
of vehicle size called ``footprint,'' the product of 
multiplying a vehicle's wheelbase by its track width. A target 
level of fuel economy is established for each one-tenth of a 
square foot increment in a vehicle's footprint. This produces a 
continuous curve whereby each discrete vehicle model size is 
essentially given its own CAFE standard. As long as all models 
in a manufacturer's fleet meet the harmonically averaged CAFE 
standard, it will be compliant with the law.
    The reformed CAFE program for light trucks will save nearly 
262 million barrels, or 11 billion gallons, of oil over the 
lifetime of the light trucks sold during 2008-2011 MYs. In 
fact, under the reformed CAFE program, some light trucks will 
have CAFE standards higher than the passenger car standard.
    The reform of the light truck rule has sparked debate about 
whether the passenger car CAFE system should be modeled on the 
``continuous curve'' reformed CAFE system NHTSA created for 
light trucks. NHTSA, however, has no authority to reform the 
passenger car program without a change in the statute.

                                Hearings

    The Committee on Energy and Commerce held a hearing on H.R. 
--------, a Committee Print Authorizing the National Highway 
Traffic Safety Administration to Set Passenger Car Fuel Economy 
Standards on May 3, 2006. The Committee received testimony 
from: The Honorable Sherwood Boehlert, Member, U.S. House of 
Representatives; The Honorable Norman Mineta, Secretary, United 
States Department of Transportation; Mr. Frederick Webber, 
President, Alliance of Automobile Manufacturers; The Honorable 
Philip R. Sharp, President, Resources for the Future; Dr. 
William Pizer, Senior Fellow, Resources for the Future; and Mr. 
Alan Reuther, Legislative Director, United Automobile Workers.

                        Committee Consideration

    On Wednesday May 10, 2006, the Full Committee met in open 
markup session and ordered a Committee Print entitled to amend 
the automobile fuel economy provisions of title 49, United 
States Code, to authorize the Secretary of Transportation to 
set fuel economy standards for passenger automobiles based on 
one or more vehicle attributes, favorably reported to the 
House, amended, by a record vote of 28 yeas and 26 nays, a 
quorum being present. A request by Mr. Barton to allow a report 
to be filed on a bill to be introduced by Mr. Barton, and that 
the actions of the Committee be deemed as actions on that bill, 
was agreed to by unanimous consent.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
following are the recorded votes taken on amendments offered to 
the measure, including the names of those Members voting for 
and against. A motion by Mr. Barton to order the Committee 
Print reported to the House, amended, was agreed to by a record 
vote of 28 yeas and 26 nays.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goals and objectives of H.R. 5359 is to provide the 
Secretary of Transportation with the authority to reform the 
fuel economy program for passenger automobiles based on one or 
more vehicle attributes related to fuel economy.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5359, a bill to amend the automobile fuel economy provisions of 
title 49, United States Code, to authorize the Secretary of 
Transportation to set fuel economy standards for passenger 
automobiles based on one or more vehicle attributes, would 
result in no new or increased budget authority, entitlement 
authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 18, 2006.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5359, a bill to 
amend the automobile fuel economy provisions of title 49, 
United States Code, to authorize the Secretary of 
Transportation to set fuel economy standards for passenger 
automobiles based on one or more vehicle attributes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Gregory 
Waring (for federal costs), Emily Schlect (for federal 
revenues), and Craig Cammarata (for the impact on the private 
sector).
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5359--A bill to amend the automobile fuel economy provisions of 
        title 49, United States Code, to authorize the Secretary of 
        Transportation to set fuel economy standards for passenger 
        automobiles based on one or more vehicle attributes

    CBO estimates that implementing H.R. 5359 would have no 
significant impact on federal spending. Enacting the bill might 
lead to a change in federal revenues, but that would depend on 
future decisions by the Secretary of Transportation that CBO 
cannot predict.
    The Secretary of Transportation is currently authorized to 
set corporate average fuel economy (CAFE) standards for cars 
and light trucks sold in the United States. H.R. 5359 would 
authorize the Secretary to set varying CAFE standards for cars 
based on size, class, or other characteristics that affect fuel 
consumption. Under current law, a single CAFE standard for cars 
applies to the average fuel efficiency of all cars sold by 
manufacturers, regardless of size or other characteristics. 
(The CAFE standards for light trucks were recently revised and 
are now based on vehicle size.)
    The National Highway Traffic Safety Administration (NHTSA), 
within the Department of Transportation, administers the fuel 
economy program. Based on information from the agency, CBO 
estimates that implementing H.R. 5359 would have no significant 
impact on the agency's workload. CBO cannot predict whether the 
Administration would develop a new CAFE standard under current 
law, under the bill, or both. In any event, we expect that 
NHTSA's costs would not be affected significantly.
    If NHTSA chose to modify the CAFE standards for cars as 
authorized by the bill, the average fuel economy of new 
vehicles sold in the United States might rise above the levels 
already anticipated under current law. (Even without a change 
in law, average fuel economy will probably increase somewhat in 
response to higher fuel prices.) A change in the CAFE standards 
could affect fuel consumption, excise tax revenues, and 
penalties imposed on manufacturers for not complying with the 
standard. If the overall fuel economy of automobiles was 
increased above that which would be realized under current law, 
reductions in fuel usage would yield reduced excise taxes on 
motor fuels. However, some firms might find it preferable to 
pay penalties instead of complying with the higher fuel economy 
standards, which would increase revenues from penalties. In any 
case, any change in federal revenues would probably not occur 
for several years because it would take time for NHTSA to 
assess the options and adopt the new standards, and because 
changes in fuel economy standards in the past have been 
structured to provide automakers with time to adjust to the new 
standards.
    Fuel efficiency improvements can have substantial effects 
on excise taxes from motor fuels. For example, whether caused 
by a change in CAFE standards or rising fuel prices, an 
increase in the fuel efficiency of all new cars beginning in 
2010 of one mile per gallon above the amount expected under 
current law could reduce excise tax revenues by $300 million a 
year by 2016. That amount would increase over time as consumers 
purchase new vehicles. Penalties that automakers pay for 
violations of CAFE standards have amounted to tens of millions 
of dollars in recent years. Thus, in most cases, CBO would 
expect a binding increase in CAFE standards to result in a net 
reduction of federal revenues.
    H.R. 5359 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
direct costs on state, local, or tribal governments. The bill 
could impose a private-sector mandate, as defined in UMRA, on 
manufacturers of passenger automobiles if the Secretary 
implements CAFE standards that are higher than what would have 
been imposed under current law. Because regulations to set any 
new standard have not been established and DOT's plans, if any, 
to amend the CAFE standard under current law are unknown, CBO 
cannot determine whether the bill would result in new private-
sector mandates. Therefore, CBO cannot determine whether the 
aggregate direct cost of complying with such private-sector 
mandates would exceed the annual threshold established by UMRA 
($128 million in 2006, adjusted annually for inflation).
    The CBO staff contacts for this estimate are Gregory Waring 
(for federal costs), Emily Schlect (for federal revenues), and 
Craig Cammarata (for the impact on the private sector). This 
estimate was approved by Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. CAFE standards for passenger automobiles

    Section 1(a)(1) amends subsection (c) of 49 U.S.C. 
Sec. 32902 by giving the Secretary of Transportation the 
explicit authority to prescribe fuel economy regulations for 
passenger cars. If the Secretary does not prescribe regulations 
for any given model year, the standard for the preceding model 
year will apply for such model year and each model year 
thereafter.
    Section 1(a)(2) requires the Department of Transportation 
to set the passenger car fuel economy standard at the ``maximum 
feasible'' average fuel economy level that the Secretary 
decides the manufacturers can achieve in that model year. 
Additionally, the Secretary may establish a standard based on 
one or more vehicle attributes related to fuel economy. The 
Committee is aware of the March 29, 2006 rule the Department of 
Transportation released regarding the fuel economy standards 
for light trucks. The Department adopted an approach for light 
trucks based on vehicle size, or footprint. This language is 
intended to give the Department the same authority to reform 
the fuel economy program for passenger cars.
    Section 1(b) makes the amendments made by section 1(a) 
effective upon enactment. The Secretary is directed to complete 
a rulemaking under its new authority no later than December 30, 
2008. Such regulations must consider the standard automobile 
industry design and production processes. This Act only 
requires that the Department complete its rulemaking by 2008, 
but it does not require that it affect the very next model 
year. The design and production process in the automobile 
industry can range between three and seven years. The Committee 
expects that any new rule will be phased-in over a series of 
years and that new passenger car fuel economy standards will 
affect the 2013 model year.
    Under current law, the CAFE statute contains a ``two-fleet 
rule'' for passenger cars. A vehicle, irrespective of who 
manufacturers the passenger car, is considered as part of the 
``domestic fleet'' if 75% or more of the cost of the content is 
U.S., Canadian, or Mexican in origin. If not, it is considered 
an import vehicle.
    Section 1(c) requires the Administrator of the National 
Highway Traffic Safety Administration (NHTSA) to conduct a 
study on the two-fleet requirement of separate fuel economy 
calculations for automobiles manufactured domestically and not 
domestically as required by 49 U.S.C. 32904(b). The study 
shall: (1) assess the effects of such requirement on employment 
within the automobile industry in the United States; (2) assess 
the effects of such requirement on overall passenger automobile 
fuel economy; (3) determine the degree to which such 
requirement encourages manufacturers to alter their automobiles 
in order to meet automobile fuel efficiency standards for both 
domestic and foreign manufactured automobiles; (4) examine the 
effect of requirements of the North American Free Trade 
Agreement on the operation of such requirement; (5) determine 
whether such requirement has resulted in additional costs to 
automobile consumers; and (6) determine whether such 
requirement has promoted increased manufacturing of smaller, 
more fuel-efficient cars in the United States. Not later than 
180 days after the date of enactment, NHTSA must transmit a 
report to Congress and to the Administrator of the 
Environmental Protection Agency.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

             SECTION 32902 OF TITLE 49, UNITED STATES CODE


Sec. 32902. Average fuel economy standards

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Amending Passenger Automobile Standards.--(1) Subject to 
paragraph (2) of this subsection, the Secretary of 
Transportation may prescribe regulations amending the standard 
under subsection (b) of this section for a model year to a 
level that the Secretary decides is the maximum feasible 
average fuel economy level for that model year. Section 553 of 
title 5 applies to a proceeding to amend the standard. However, 
any interested person may make an oral presentation and a 
transcript shall be taken of that presentation.
  [(2) If an amendment increases the standard above 27.5 miles 
a gallon or decreases the standard below 26.0 miles a gallon, 
the Secretary of Transportation shall submit the amendment to 
Congress. The procedures of section 551 of the Energy Policy 
and Conservation Act (42 U.S.C. 6421) apply to an amendment, 
except that the 15 calendar days referred to in section 551(c) 
and (d) of the Act (42 U.S.C. 6421(c), (d)) are deemed to be 60 
calendar days, and the 5 calendar days referred to in section 
551(f)(4)(A) of the Act (42 U.S.C. 6421(f)(4)(A)) are deemed to 
be 20 calendar days. If either House of Congress disapproves 
the amendment under those procedures, the amendment does not 
take effect.]
  (c) Amending Passenger Automobile Standards.--
          (1) Regulations.--The Secretary of Transportation may 
        prescribe regulations amending the standard under 
        subsection (b) of this section for a model year. If the 
        Secretary does not prescribe regulations under this 
        subsection for a given model year, the standard in 
        effect for the preceding model year shall apply to such 
        model year and each model year thereafter.
          (2) Maximum feasible average fuel economy.--The 
        standard prescribed under this subsection shall be the 
        maximum feasible average fuel economy level that the 
        Secretary decides the manufacturers can achieve in that 
        model year. In amending such standard for a model year, 
        the Secretary, consistent with the Secretary's 
        authority under this section for prescribing standards, 
        may establish a standard based on one or more vehicle 
        attributes related to fuel economy.

           *       *       *       *       *       *       *

  (g) Requirements for Other Amendments.--(1) * * *
  (2) When the Secretary of Transportation prescribes an 
amendment under this section that makes an average fuel economy 
standard more stringent, the Secretary shall prescribe the 
amendment [(and submit the amendment to Congress when required 
under subsection (c)(2) of this section)] at least 18 months 
before the beginning of the model year to which the amendment 
applies.

           *       *       *       *       *       *       *


 DISSENTING VIEWS OF REPRESENTATIVES JOHN D. DINGELL, HENRY A. WAXMAN, 
  EDWARD J. MARKEY, RICK BOUCHER, EDOLPHUS TOWNS, FRANK PALLONE, JR., 
SHERROD BROWN, BART GORDON, BOBBY L. RUSH, ANNA G. ESHOO, BART STUPAK, 
   ELIOT L. ENGEL, ALBERT R. WYNN, GENE GREEN, TED STRICKLAND, DIANA 
   DeGETTE, LOIS CAPPS, MICHAEL F. DOYLE, TOM ALLEN, JIM DAVIS, JAN 
  SCHAKOWSKY, HILDA L. SOLIS, CHARLES A. GONZALEZ, JAY INSLEE, TAMMY 
                         BALDWIN, AND MIKE ROSS

    This is a flawed bill that has resulted from a flawed 
legislative process. All 26 Democratic Members of the Committee 
on Energy and Commerce voted against the Committee Print. It 
delegates vague and over-broad authority to the Secretary of 
Transportation, the consequences of which are not fully 
understood. By deviating from fleet-wide averaging, it may 
result in a rollback of existing environmental regulation and 
may undermine existing incentives for manufacturers to produce 
small cars in the United States. Moreover, there is no question 
that the Committee Print will not reduce gas prices in the 
near-term.
Process
    The Subcommittee on Energy and Air Quality held no hearings 
and did not consider any legislative proposals in open markup. 
The Committee held one hearing on May 3, 2006, the first 
hearing on Corporate Average Fuel Economy (CAFE) standards in 
over a decade. Six witnesses testified with divergent views on 
how best to reform the system that regulates the fuel economy 
of automobiles, and the official record of the hearing remains 
open for additional information. While high gasoline prices 
have brought about a rush of legislation to the House floor, 
all witnesses at the hearing, including the Secretary of 
Transportation, agreed that legislation increasing CAFE 
standards will not affect gas prices in the near-term. The 
Committee did not receive any expert testimony supporting the 
bill, nor did it have the benefit of the Administration's 
views. The Department of Transportation did submit its own 
different legislative proposal a few hours prior to the 
Committee's consideration of the Committee Print.
Authority to increase passenger car CAFE standards
    The Secretary of Transportation is already authorized under 
Title 49 U.S. Code Section 32902(c) to increase passenger 
automobile fuel economy standards above 27.5 miles per gallon 
or below 26.0 miles per gallon. In response to a question from 
Chairman Barton, Secretary Mineta stated, ``there is no 
question that we have authority to set the stringency of the 
CAFE standard, in other words, the miles per gallon.'' 
Consequently, the primary purpose of the Committee Print is to 
grant the Department authority to reform the CAFE system for 
passenger automobiles.
Over-broad and vague delegation of authority
    The Committee Print includes different legislative language 
authorizing the reform of CAFE for passenger automobiles than 
the statutory authority the Secretary used to reform CAFE for 
non-passenger automobiles. The discrepancy was not explained, 
and it is not clear what the consequences of the new language 
may be. The Committee Print authorizes the Secretary to set a 
standard based on one or more vehicle attributes related to 
fuel economy. Few elements of a motor vehicle are not related 
to vehicle fuel economy. In response to questions from Rep. 
Dingell, committee counsel conceded that an attribute could 
include fuel type, external ornamentation, number of doors, the 
type of tires, and numerous other features.
Fleet-wide averaging
    By permitting the Secretary to set standards based upon one 
or more vehicle attributes, the current system requiring 
manufacturers to satisfy an overall fleet-wide average could be 
eliminated. Without fleet-wide averaging, the separate foreign 
and domestic fleet requirements would no longer require 
manufacturers to produce small vehicles domestically. In a May 
10, 2006, letter opposing the Committee Print, the United 
Automobile Workers (UAW) states that ``the legislation would 
directly threaten the jobs of tens of thousands of American 
workers employed in plants that assemble or produce parts for 
small cars.'' The lack of a fleet-wide average could also 
decrease the overall fuel economy of vehicles sold in the 
United States. The UAW notes, ``auto companies could simply up-
weight or up-size their vehicles, yet still satisfy lower 
overall CAFE requirement for larger vehicles. In our judgment, 
Congress should not give its blessing to any overhaul of the 
CAFE system that could hurt fuel economy, the environment and 
our nation's energy security.''
CAFE requirement for foreign and domestic fleets
    All Democratic Members of the Committee present at the time 
of the vote voted against an amendment offered by Rep. Stearns 
to re-evaluate the requirement that manufacturers comply with 
CAFE standards separately for vehicles produced domestically 
and overseas. Efforts to undermine the distinction between 
foreign and domestic fleets, or the requirement that 
manufacturers comply with a fleet-wide average, could reduce 
domestic production of small vehicles and reduce overall fuel 
economy of our vehicles. This would be a negative result for 
American manufacturing, American workers, and the environment.
Conclusion
    This hastily crafted bill will do nothing to reduce 
gasoline prices, grants over-broad authority to the Secretary 
of Transportation, may result in poorer fuel economy for 
passenger vehicles, and threatens American jobs. It should be 
defeated.

                                   John D. Dingell.
                                   Henry A. Waxman.
                                   Edward J. Markey.
                                   Rick Boucher.
                                   Edolphus Towns.
                                   Frank Pallone, Jr.
                                   Sherrod Brown.
                                   Bart Gordon.
                                   Bobby L. Rush.
                                   Anna G. Eshoo.
                                   Bart Stupak.
                                   Eliot L. Engel.
                                   Albert R. Wynn.
                                   Gene Green.
                                   Ted Strickland.
                                   Diana DeGette.
                                   Lois Capps.
                                   Michael F. Doyle.
                                   Tom Allen.
                                   Jim Davis.
                                   Jan Schakowsky.
                                   Hilda L. Solis.
                                   Charles A. Gonzalez.
                                   Jay Inslee.
                                   Tammy Baldwin.
                                   Mike Ross.

  ADDITIONAL DISSENTING VIEWS OF CONGRESSMAN EDWARD J. MARKEY, OTHERS

    There is nothing in this bill that will result in higher 
fuel economy standards for passenger automobiles. In fact, by 
allowing the Department of Transportation to set ``attribute-
based'' standards in the absence of a minimum fleet-wide 
average fuel economy, this bill may actually result in lower 
fuel economy standards. This is because manufacturers will only 
be required to ensure that each model they manufacture meets 
the fuel economy standard required for its attribute-based 
class. If the manufacturer chooses to alter the composition of 
its fleet (i.e. to produce more models with attributes that are 
required to meet lower fuel economy standards), then its fleet-
wide fuel economy performance could actually be lower than the 
27.5 miles per gallon standard it is required to achieve under 
current law.
    The Markey amendment, which failed on a 36-17 vote, would 
have ensured that the average fleet-wide fuel economy for cars 
and light trucks would reach 33 miles per gallon after model 
year 2015, and would have ensured that each manufacturer's 
foreign and domestic fleets separately meet that average 
minimum requirement.
    The Markey amendment CAFE goal is consistent with the 2001 
report by the National Academy of Sciences (NAS) entitled 
``Effectiveness and Impact of CAFE Standards.'' During the only 
hearing the Committee held on this issue, the Secretary of 
Transportation also expressed his interest in this important 
report, saying that he intended to study it going forward. 
While it is encouraging that the Administration is interested 
in this report, it is unacceptable that they would offer it up 
now as an excuse not to set a strong CAFE standard, 5 years 
after the report was issued.
    The NAS report forms the technical basis for the Markey 
amendment, and should provide confidence that reaching a 33 mpg 
standard using today's technologies is both feasible and 
economic. The NAS analysis developed 3 different `technology 
paths' (see Chapter 3, in particular pages 35-39) that could be 
used to improve the fuel economy of passenger cars and light 
trucks. All technology paths assumed $1.50/gallon of gas, the 
cost of available technologies at the time, and all assumed a 
5% weight increase as a result of the addition of new CAFE and/
or safety technology. Obviously, these assumptions yield 
conservative estimates of achievable increases to CAFE 
standards because the much higher cost of gas would imply that 
more technologies would now be cost-effective by comparison, 
and in addition, because more technologies have presumably been 
developed in the past 5 years since the analysis was performed.
    The NAS report lists numerous technologies which could be 
incorporated for each size class of vehicle and for each 
technology pathway. The fuel economy improvements deemed 
possible for each of the second technology pathway technologies 
add up to a range of achievable fuel economy improvement of 34-
65.5%. Using the lower bound of this range, or a 34% 
improvement in CAFE standards, one arrives at a new achievable 
CAFE standard of 33 miles per gallon.
    This is the basis for the amendment, and for H.R. 3762, the 
Boehlert-Markey CAFE bill. It is based on the most conservative 
interpretation of the middle-of-the-road technology pathway 
described by the NAS in 2001. Clearly, we can do much better 
than this. Passage of the Markey amendment would have 
guaranteed that we do not do worse.
    Had the Markey amendment been adopted, it would have 
ensured an oil savings of 500,000 barrels per day (an amount 
equal to what the United States currently imports from Iraq) by 
2015, and an oil savings of 2.1 million barrels per day by 
2025.
                                   Edward J. Markey.
                                   Lois Capps.
                                   Jay Inslee.
                                   Diana DeGette.
                                   Henry A. Waxman.
                                   Thomas H. Allen.
                                   Tammy Baldwin.
                                   Eliot L. Engel.
                                   Frank Pallone, Jr.
                                   Jan Schakowsky.
                                   Anna G. Eshoo.

                                  
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