Bi-Partisan Effort Seeks to Increase U.S. Fuel Economy Standards

Oregon Senator Gordon Smith says the Fuel Economy Reform Act sends a clear message to automakers to build more efficient vehicles.

Salem, Oregon's Electric Wheels sells alternative fuel cars of different varieties, giving weight to the notion that eventually, most cars on the road will use little gasoline, if any. Photo by: Tim King

(WASHINGTON, D.C.) - Citing the growing global demand for oil driving up prices at the pump, U.S. Senator Gordon Smith (R-OR) and a bi-partisan group of senators have introduced legislation that will help motorists travel farther on a gallon of gas.

The Fuel Economy Reform Act will spur the production of alternative-fuel powered cars and SUVs and will increase fuel economy standards by 4 percent a year or at least one mile-per-gallon.

“Gas prices are skyrocketing but they’re just the part of our problem,” Smith said. “Importing so much oil leaves us vulnerable to some of the most unstable regimes in the world.

Automakers have been too slow to change and we’re risking damage to American security and the economy.”

The Fuel Economy Reform Act scraps the current focus on a fleet wide average and authorizes the National Highway Transportation Safety Administration (NHTSA) to develop a new system that sets fuel economy standards based on the attributes of a vehicle (such as its size and weight). The goal, under this new system, is to set individualized fuel economy targets that increase by 4 percent per year (or approximately one mile per gallon).

The experts at NHTSA will be able to reduce the annual increase if they conclude that the 4 percent target cannot be reached with current technology or without compromising cost effectiveness or the safety of the entire fleet.

“We all want to be good stewards of the environment. Incentives for the domestic auto industry to utilize new technology are key to decreasing environmental impacts. A more environmentally friendly vehicle will also lessen America’s dependence on foreign oil.”

Senator Smith introduced the Fuel Economy Reform Act with his colleagues Senators Barack Obama (D-IL), Richard G. Lugar (R-IN), Joseph R. Biden (D-DE), Jeff Bingaman (D-NM), Tom Harkin (D-IA), and Norm Coleman (R-MN).

The Fuel Economy Reform Act will also:

Provide incentives to support domestic automobile manufacturing and the purchase of efficient vehicles and protect incentives to keep the manufacture of small vehicles in the United States.

Create new incentives for vehicle manufacturers or parts suppliers to re-tool, expand, or establish manufacturing facilities that produce advanced technology motor vehicles or components.

Assist certain engineering, research and development, and employee training.

Lift the current 60,000 vehicle cap on the number of individuals who can receive tax benefits for the purchase of ultra-efficient vehicles such as hybrids.

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