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Summary:
One of the least controversial provisions of the Energy Policy and Conservation Act of 1975 (P.L. 94-163) established corporate average fuel economy (CAFE) standards for new passenger cars. As oil prices rose, there was little expectation that manufacturers would have any difficulty complying with the standards. However, oil prices softened and the demand for small cars diminished. In response to petitions from manufacturers facing stiff civil penalties for noncompliance, the National Highway Traffic Safety Administration (NHTSA) relaxed the standard for model years 1986-1989. The current standard is 27.5 mpg for passenger automobiles and 20.7 mpg for light trucks, a classification that also includes sport utility vehicles (SUVs). An attempt in the 102nd Congress to raise CAFE proved too controversial and was dropped from omnibus energy policy legislation before it could pass (Energy Policy Act of 1992, P.L. 102-486). The Clinton Administration supported greater fuel efficiency, but indicated in 1993 that an increase in the CAFE standards was not the option likeliest to be embraced first. In 1994, the National Highway Traffic Safety Administration (NHTSA) issued a notice of proposed rulemaking to explore raising the CAFE standard for light-duty trucks. Congress included language in the FY1996-FY2001 DOT Appropriations (P.L. 104-50, P.L. 104-205, P.L. 105-66, P.L. 106-69, and P.L. 106-346) prohibiting the use of appropriated funds for any rulemaking on CAFE, effectively freezing the standards. However, the Senate conferees to the FY2001 appropriations insisted upon a study of CAFE by the National Academy of Sciences (NAS). That study, released on July 30, 2001, concluded that it was possible to achieve a more than 40% improvement in light truck and SUV fuel economy over a 1015 year period at costs that would be recoverable over the lifetime of ownership. There were sharp differences in the House and Senate CAFE proposals. On July 12, 2001, the House Subcommittee on Energy and Air Quality adopted an amendment in markup to H.R. 2587 that called for a reduction of 5 billion gallons in light-duty truck fuel consumption over the period of model years (MYs) 2004-2010. This proposal came to the House floor on August 1, 2001 as part of H.R. 4. An amendment to establish a combined passenger car and truck CAFE of 27.5 mpg by MY2007 was defeated 160-269. The NAS study, released two days earlier, figured prominently in the debate. On March 13, 2002, the Senate, debating its own comprehensive energy bill, voted (62-38) for an amendment to charge NHTSA with development of new CAFE standards. The Senate then approved an amendment (56-44) to freeze "pickup trucks" at the current light truck standard of 20.7 mpg. On September 19, the conferees agreed to the House-passed goal of saving 5 billion gallons, but shifted the window to MY2006-MY2012. The 107th Congress adjourned without taking final action on the bill. In late November 2002, it was reported that the Administration was reviewing a NHTSA proposal to boost the CAFE of lightduty trucks by 1.5 mpg by 2007. Depending upon the disposition of this proposal, CAFE might, or might not, be included in any new energy legislation introduced in the 108th Congress.
