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Does steeper CAFE requirement need off-ramp?

Harry Stoffer  |  Automotive News / May 7, 2007 - 1:00 am /

WASHINGTON -- When senators begin voting this week on dramatically higher fuel economy standards for cars and trucks, they will confront the volatile issue of "off-ramps."

That's the new term for provisions to ease higher future standards if they prove too difficult or costly to achieve.

At a U.S. Senate hearing last week, national security and environmental groups complained that the corporate average fuel economy program, or CAFE, is riddled with loopholes. Off-ramps would create new loopholes and invite failure, they warned.

But Mike Stanton, president of the Association of International Automobile Manufacturers, said off-ramps are needed to allow for unexpected technological or economic problems.

Sen. Daniel Inouye, D-Hawaii and chairman of the Senate Commerce Committee, said a new CAFE bill will address industry concerns. Committee members are scheduled to vote on it Tuesday, May 8.

Draft legislation presented Friday would require the nationwide fleet of new cars and light trucks to average 35 mpg by 2020 - about 10 mpg higher than today.

After 2020, CAFE standards would increase 4 percent a year. The measure also would require standards for medium and heavy trucks and would permit the National Highway Traffic Safety Administration to use off-ramps, as needed.

Automakers say 4 percent annual increases are too aggressive. They argue that NHTSA experts, not lawmakers, should set standards at the maximum feasible level.

"The truth is, they haven't and they won't," said Sen. Byron Dorgan, D-N.D., sponsor of a bill that would require 4 percent annual increases through 2030. Dorgan said his bill would reduce reliance on imported oil and cut greenhouse gas emissions.

You may e-mail Harry Stoffer at hstoffer@crain.com