Comparison of Senate and House Energy Legislation

SUV Owners of America (SUVOA) is a non-profit organization dedicated to supporting the rights and serving the interests of Americans who rely on SUVs, pickups and vans for their livelihoods and lifestyles.

Like all Americans, SUVOA supports reasonable measures to improve fuel economy, but not at the expense of our vehicle choice. SUVOA supports the bipartisan Hill-Terry Bill, H.R. 2927 because it calls for reasonable, incremental increases in corporate average fuel economy (CAFE) standards. It also sets different CAFE standards for cars and light trucks, unlike the unrealistic Senate legislation on fuel economy standards that fails to make this fundamental distinction. From farmers and ranchers to builders and boaters, vans, minivans, trucks and SUVs are needed and enjoyed by over 80 million Americans.

Listed below are the differences between the Senate legislation and the Hill-Terry bill, along with SUVOA’s position on each.

Senate Legislation

• Requires a 1 mile-per-gallon per year increase by 2020. This amounts to a 40 percent increase.
• Fuel economy and energy dependence were the only considerations. Technological feasibility and consumer preferences--family, work or lifestyle needs are ignored.
• Combines passenger car and light trucks into one category. This will require a substantial reduction in sales and size of trucks. Lehman Brothers believes that 60 percent of large pickups and SUVs would be eliminated by this requirement.
• It appears the 35 mpg number apparently was set arbitrarily.
• Will require-for the first time ever—CAFE standards for medium- and heavy-duty trucks (to be set in the future).

Requires automakers to make one-half of all their vehicles capable of running on ethanol or other biofuels by 2015.

SUVOA Position
The Senate legislation would cause a dramatic downward shift in the size and performance of the U.S. passenger vehicle fleet, and especially the light truck segment. In addition to vehicle costs increasing significantly, and likely impacting safety adversely, utility (hauling and towing) would be compromised if not lost altogether. Families, small businesses and recreational enthusiasts would find fewer vehicle choices and with reduced engine and other performance factors. Today’s “workhorse” SUVs and light trucks would probably disappear or be in very limited supply.

House Legislation: H.R. 2927

• Very aggressive in increasing fuel economy. Requires the Secretary of Transportation to prescribe fuel economy standards at the maximum feasible level for each model year (“maximum feasible” level – a term that is defined in current law to include technology and economic considerations that encompass protection of domestic employment in the auto sector and manufacturer compliance costs).
• Requires the Secretary to prescribe separate standards for Model Year 2022 such that passenger and non-passenger automobile standards will be no less than a combined 32 mpg and no more than a combined 35 mpg. (In subsequent model years, the Secretary must prescribe standards at the maximum feasible level, but no less than a combined 32 mpg.)
• Permits the Secretary to prescribe standards based on one or more vehicle attributes related to fuel economy, including carbon efficiency.
• Diverts civil penalties from non-compliance with CAFE standards into a fund for the domestic development and production of advanced technology vehicles.
• Establishes a public education program to inform consumers how best to conserve fuel when using their vehicles.
• Extends the flexible fuel vehicle credits, and permits vehicles that operate on bio-diesel (B-20 or greater) to qualify for the credit.
• Respects the important functional “workhorse” utility differences between passenger cars and light trucks/SUVs by keeping passenger car and light truck standards separate.
• Protects an incentive that enables the manufacturers to earn and use credits for exceeding a standard.

SUVOA Position
We support H.R. 2927 as probably the least onerous legislation likely to pass in this Congress, but still very tough to meet. It has inherent flexibility that is an important distinction from the Senate bill. In supporting it, we intend to point out the importance of ensuring that the final bill considers consumer choice and the transportation requirements of families, farmers and ranchers, contractors and small businesses, equestrians, recreational enthusiasts who need to haul and tow, and others who require larger vehicles for their personal and business transportation needs.