DETROIT, March 11 (UPI) -- Sens. Carl Levin, D-Mich., and Christopher Bond, R-Mo., on Monday prepared legislation that would return authority over mileage standards to the National Highway Traffic Safety Administration.
The senators expected to introduce the measure Tuesday.
The bill, which has the backing of both the auto industry and President Bush, would allow NHTSA to assess safety issues and the impact on jobs new Corporate Average Fuel Economy standards would have. For the last six years, Congress has refused to fund NHTSA review of existing fuel economy standards.
The Senate is debating a comprehensive energy bill and likely to take up the fuel economy issue this week.
Currently, mileage among cars and light trucks is at its lowest average since 1981, largely due to consumer enchantment with gas-guzzling sport-utility vehicles and other light trucks.
The Alliance of Automobile Manufacturers notes there currently are 30 vehicle models that get more than 30 mpg. The problem is that consumers aren't buying them in the numbers needed to improve the nation's fuel economy.
Automakers have been fighting new mileage standards, arguing they will cost jobs. Carmakers also insist they are making progress in developing alternative technologies.
The Levin-Bond measure would grant tax credits to consumers who buy hybrid gas-electric and other alternative energy vehicles.
Sen. John Kerry, D-Mass., and Sen. John McCain, R-Ariz., have crafted a bipartisan plan that would require automakers to improve average mileage to 36 miles per gallon by 2015. Currently, cars fleets are required to average 27.5 mpg and light trucks, 20.7 mpg. Those standards are set to remain in effect through 2004.
Kerry calls warnings of job losses as a result of stricter CAFE standards scare tactics.
General Motors estimated increasing average mileage to 35 mpg by 2013 would cost 100,000 jobs but environmentalists argue stricter standards actually will create jobs because of the savings consumers will experience on fuel costs.
Automakers say the emphasis should be on government-sponsored research, not regulation.
Earlier this year, the Bush administration unveiled its Freedom CAR plan, which promotes development of a hydrogen-powered fuel cell vehicle. Last week in Detroit, Ford pledged to make hybrid Escape SUVs, which Ford expects to average 40 mpg, commonplace.
CAFE standards were first introduced in 1975 in response to the Arab oil embargo.
