House to debate fuel bills

WASHINGTON -- House Speaker Nancy Pelosi hasn't decided whether to include an increase in the fuel economy of the nation's cars and trucks in a package of energy bills before the chamber next week, her office said Tuesday.

Pelosi, D-Calif., has indicated to U.S. Rep. John Dingell, D-Dearborn, that she favors a course of waiting until after the August recess to consider "the more controversial and difficult issues" on climate change and global warming, including new rules on fuel efficiency, Dingell said. The package before the House includes bills to improve energy efficiency, including light bulbs and buildings.

"She hasn't ruled anything in or out," said Nadeam Elshami, Pelosi spokesman.

Meanwhile, environmentalists and advocates of improving the fuel economy of the nation's cars and trucks are employing a new tactic: a study that shows economic benefits to higher fuel economy and a poll showing public support.

On Tuesday, the University of Michigan Transportation Research Institute issued a report that suggested the Detroit automakers could earn $14.4 billion by 2017 by hiking efficiency to 35 miles per gallon by 2017 -- as required on a bill that passed the Senate. They stand to make more profit gains because they will be making improvements that have higher market value and higher profit margins, the study said.

Automakers and the Bush Administration contend new rules will cost them tens of billions of dollars, but advocates say they won't affect consumer choice and will benefit carmakers.

David Friedman, research director of clean vehicle research for the Union of Concerned Scientists, has argued that increasing fuel economy to 35 miles per gallon would increase U.S. employment by 241,000 jobs by 2020.

The study even suggests Michigan would gain 11,000 jobs -- an irony to automakers who worry about their survival under a dramatically higher standard.

Automakers have expressed outrage, saying the study is ideologically biased and flawed. They point to a Standard & Poors report in May that said higher fuel rules "pose a real risk to global automakers' financial performance."

On Monday, a poll by Pew Campaign for Fuel Efficiency suggested consumers were nearly unanimous in favor of higher fuel economy. The poll, however, didn't disclose the higher vehicle price tag that goes along with improved fuel economy. The poll included 400 residents of Dingell's 15th congressional district.

The Senate bill passed in late June hikes corporate average fuel economy by 40 percent to a combined 35 miles per gallon by 2020 for light trucks and passenger cars. Pelosi has said she supports the Senate bill.

In a related matter, Dingell appeared at a press event Tuesday in which supporters of the "Hill Terry" fuel economy bill said they had 102 House cosponsors. The bill introduced by Baron Hill, D-Ind., and Lee Terry, R-Neb., has about 50 Democrats and 50 Republican supporters.

It would hike fuel economy for passenger cars to 35 miles per gallon by 2022 and to at least 32 miles per gallon for light trucks. Dingell said the bill would result in an enormous savings of energy" that will also "protect jobs."

A rival, more aggressive bill sponsored by Rep. Ed Markey, D-Mass., head of the House select global warming committee, would require automakers to hit 35 miles per gallon by 2018. That bill has about 150 cosponsors. It takes 218 votes to win a majority in the House. The National Automobile Dealers Association said the Markey bill could threaten consumer choice by forcing automakers to sell smaller vehicles. "The current product mix would be in jeopardy," said David Regan, NADA vice president for legislative affairs.

You can reach David Shepardson at (202) 662-8735 or dshepardson@detnews.com">dshepardson@detnews.com.