|
|||
|
|
|
|
|
|||
In July, Senator Richard Lugar (R-IN), Senator Barack Obama (D-IL), and others introduced the "Fuel Economy Reform" bill. The bill aims to reduce U.S. gasoline consumption by nearly half a trillion gallons by 2028 and greatly decrease our dependence on foreign oil.
Specifically, the bill includes the following key elements:
- Higher Fuel Economy Standards - 4% annual increase in Corporate Average Fuel Economy standards starting in 2009.
- Flexibility for Manufacturers - CAFE reforms that allow different types of cars to meet different standards, and trading of CAFE credits between vehicle types and between manufacturers.
- Manufacturer Incentives for Fuel Efficiency - Tax incentives for companies to retool parts and assembly plants to manufacture advanced technology vehicles. The tax credit would be equal to 35% of the company's investment cost at the manufacturing facility.
- Consumer Incentives for Fuel Efficiency - Removal of the current cap on consumer incentives for fuel- efficient vehicles (current cap is 60,000 vehicles per manufacturer).
According the proposed legislation, the 4% per year increase in fuel economy would be maintained for 20 years. Sponsors of the legislation state that this improvement in fuel economy would lead to a reduction of 549 billion gallons of gasoline, and over $1.37 trillion in savings at the gas pump.
For more information, please visit: