September 2007

POLICY NEWS

Fuel Economy Rules Still Up in the Air
Congress at odds over best approach

Before beginning recess in early August, the U.S. House of Representatives managed to pass a new energy bill, but unlike the Senate refrained from including new fuel economy standards in it. House Energy Committee leader John Dingell (D-MI) has stated his plans to include fuel economy increases as part of an economy-wide climate change package expected to be introduced this fall. Other House leaders are pushing for fuel economy rules to be included in an energy bill conference with the Senate, which included new 35mpg standards in its version of the energy legislation.

Meanwhile, fuel economy proposals that were introduced in the House continue to gain support. Automakers and the UAW continue to fight for the Hill-Terry bill, which has less aggressive fuel economy targets and includes an "antibacksliding" provision that helps ensure that small car production remains in the U.S.

The other leading proposal, introduced by Markey-Platts, requires stiffer fuel economy increases similar to the Senate, but offers limited tools to help the domestic companies achieve the standards. Neither proposal contains significant incentives to domestic automakers for retooling their factories to produce new fuel efficient vehicles and technologies.

Whichever path Congress decides to take, a combination of strong standards, job protections and generous incentives for retooling would provide the best opportunities for saving both oil and jobs.

Read more:

• New Policy Solutions

Dingell Talks Carbon Tax
Green Machines Tour hosts two town hall discussions

Michigan residents in Congressman John Dingell's 15th District had a chance to talk to the powerful House Energy Committee chair at home this month during two town hall meetings. During the discussions, Dingell revealed his plans for a carbon tax expected to cost around $100 per ton. "If we are serious about addressing global warming, we need to reduce consumption," said Dingell. "We do this by making it more expensive." He hopes to achieve a carbon emission reduction of 80% by 2050. Read more

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TECHNOLOGY NEWS

GM Introduces "Green" Powertrains
Small diesels coming to US market soon

GM is preparing to meet growing consumer demand for more fuel efficient vehicles. Earlier this month GM announced that it will have a total of 8 hybrid models on the road within the next year, after introduction of the Chevy Malibu Hybrid, Tahoe Hybrid and GMC Yukon Hybrid. At the same time, the company recently purchased 50% of Italian diesel maker VM Motori, and plans to introduce diesels, including possible diesel versions of the Cadillac CTS and Saturn Aura, to the US market in coming years. GM is also boosting production of cars with other advanced technologies, like gasoline direct injection and more six-speed transmissions, and plans to begin production of the plug-in electric Chevy Volt within the next three years.

Read more:

• GM Goes Green
• A Green Cadillac? GM's Surprising New Hybrid
• GM May Make 60,000 'Volt' Electric Cars in First Year

Chrysler Improves Fuel Economy By Reducing Weight
Future Chrysler cars will be 13% lighter

Chysler announced last week that it plans to use high strength steel and other design changes to reduce the weight of vehicles by 13% over the next 3 to 6 years. This reduction in weight should improve fuel economy by 1% in each new vehicle and improve safety performance. Read More