http://www.gristmagazine.com/powers/powers022004.asp?source=daily

CAFE Au Lait

Bush plan to overhaul CAFE standards is a mixed bag

by Amanda Griscom

20 Feb 2004


Clean up the bus, gus.
Photo: NREL.
The Bush administration has taken to singing the clean-car gospel 
lately, but it's not quite hitting all the notes. Last month, U.S. 
EPA chief Mike Leavitt joined Detroit kingpins in a splashy D.C. 
conference to trumpet the arrival of new vehicles and fuels that 
reduce sulfur emissions -- a notable achievement, but what Leavitt 
was passing off as a Bush administration success was in fact an 
initiative launched under President Clinton. Days later, Leavitt 
announced additional funding for the Clean School Bus USA program -- 
some $60 million to replace pre-1991 school buses with new ones that 
have state-of-the-art emission controls. Environmentalists 
pooh-poohed the program as a small effort that will have a negligible 
effect on emissions, and they noted that it's part of a larger PR 
blitz in election battleground states.

While these efforts drew lots of media attention, there was one 
recent car-related announcement that the Bush administration slipped 
under the radar, and this one is likely to have much broader effects. 
On Dec. 22, the Bush administration proposed a major rewrite of the 
Corporate Average Fuel Economy (CAFE) program. One notable outcome of 
the proposal would be the closing of a loophole that currently 
exempts vehicles over 8,500 pounds, such as the Hummer H2, from any 
fuel-efficiency standards whatsoever. But despite this welcome 
tidbit, few environmentalists were pleased with the proposal as a 
whole.

"The loophole the Bush administration proposes to close may move us 
one step forward," said Daniel Becker, director of the Sierra Club's 
global warming and energy program. "But their proposal also includes 
another loophole for the auto industry that will move us three steps 
back."


Hum diddle dee.
The big concern, according to Becker, is that the Bush administration 
would regulate the fuel economy of light trucks by dividing them into 
weight or size classes instead of using fleet-wide efficiency 
targets. While the current CAFE program has two automotive classes -- 
cars and light trucks -- the new proposal would create additional 
truck weight classes, with different fuel-economy standards for each 
classification. In a nutshell, said Becker, the system would produce 
an incentive for companies to add weight to their cars to bump them 
up into higher classes and qualify them for looser efficiency 
restrictions.

Something similar happened in response to the original CAFE rules. 
"Those rules were written in 1975 when no one imagined that vehicles 
would ever have a weight over 8,500 pounds," said Becker. But as 
consumer demand grew for bigger, fatter cars, automakers began 
exploiting that loophole by putting out models such as the Ford 
Excursion and the Hummer that weigh in just over the 8,500-pound 
limit. There's no reason to think they won't continue this trend of 
up-weighting when there are more truck weight classes, Becker argued.


PT Cruiser -- a "truck" no more?
Photo: DOE.
On a positive note, the rule changes would also narrow the definition 
of light truck so auto manufacturers can't utilize another surprising 
loophole: Under the current system, a vehicle can be classified as a 
truck if seats can be easily removed to create a flat bed of cargo 
space. DaimlerChrysler's PT Cruiser squeaks into the light truck 
category for this reason, making it subject to laxer mileage regs 
than a car, and there are a number of other new vehicles that fall 
into this ambiguous realm between cars and trucks. Stuart Schorr, a 
spokesperson for DaimlerChrysler, called the proposed clarification 
of the light-truck definition "a wallop that will disadvantage 
companies that are focusing in [this in-between realm], and seriously 
crimp industry profits."

Still, it's not clear how much of an impact, if any, the Bush 
administration's new plan would have because details have yet to be 
set. So far, the proposal is outlined in vague terms, without 
specific numbers for mileage standards in each category.

CAFE Break

Current CAFE standards require new cars in model year 2005 to average 
27.5 miles per gallon and light trucks to average 21 mpg -- targets 
that have hardly changed in the last two decades. Developed in the 
mid-1970s in response to the oil crisis brought on by the Arab oil 
embargo, CAFE standards immediately prompted a flurry of histrionic 
protest from Detroit. Car makers complained that they would be forced 
to focus their manufacturing on tiny two-passenger cars that were not 
only impractical but unsafe. A Ford spokesperson testified before 
Congress in 1974 that the proposed mileage standards would "result in 
a Ford product line consisting of either all sub-Pinto-sized vehicles 
or some mix of vehicles ranging from a sub-sub-compact to perhaps a 
Maverick."

Well, we saw how that went. Now, when bloated Suburbans and Yukons 
are the favored modes of transport for groceries, it's abundantly 
clear that car manufacturing has been going anywhere but in the 
direction of the Pinto. Today a whopping 50 percent of vehicles sold 
in the U.S. fit into the light-truck category, up from 20 percent 
when CAFE was implemented.

In the '70s, CAFE also elicited gloomy predictions of a major spike 
in automobile-related deaths and panicked claims that Detroit's 
revenues would plummet. Obviously, these things never happened -- 
just the opposite. Since 1975, when the standards were first 
implemented, automobile-related death rates have fallen by more than 
12 percent and Detroit's revenues have ballooned by more than 300 
percent. So much for the doomsday scenarios.

However, hopeful predictions about improved fuel efficiency fared no 
better. In fact, the 2003 automotive fleet had the worst average fuel 
economy of any fleet since the standards were set -- 22.7 mpg, 
combining car and light-truck averages -- thanks to glaring CAFE 
loopholes and the increasing popularity of gas-guzzling SUVs.

"Everyone agrees CAFE regulations are desperately in need of 
overhaul," said Becker, "but not a way that accelerates this 
ludicrous trend toward heavier and heavier cars."

The Safety Dance

For its part, the Bush administration defends the CAFE overhaul as an 
effort to encourage greater highway safety, citing federal research 
indicating that current regulations may undermine motorists' safety 
by encouraging auto manufacturers to make their vehicles lighter.


No crash test dummies were harmed in the making of this photo.
Photo: NHTSA.
But a growing mountain of evidence debunks this line of thinking. In 
the Jan. 12 issue of The New Yorker, a Malcolm Gladwell expose 
revealed that an SUV's size and weight give it less precise and 
responsive handling, longer braking times, and a higher risk of 
rollover -- all serious safety disadvantages. Gladwell also argues 
that drivers of large vehicles develop an attitude of invincibility 
that leads to recklessness.

According to Clarence Ditlow, director of the Center for Auto Safety, 
new reports consistently show "that heavier vehicles are far and away 
more deadly -- these are rolling battering rams that cause more 
carnage not only to the car's passengers but to those in the other 
cars involved in the crash." In addition to the high risk of 
rollover, says Ditlow, most trucks have a steel beam that runs from 
bumper to bumper and makes the vehicles very rigid during a crash, 
whereas cars have a "crumple zone" that absorbs force so the 
occupants don't feel as much of the impact.

This crumple zone was in fact one of the innovations developed by 
auto manufacturers to make lighter cars safer after CAFE standards 
were introduced -- along with air bags, anti-lock braking systems, 
and better seatbelt designs. "The assumption that requiring car 
companies to develop lighter, more efficient cars is a direct 
public-health threat completely ignores Detroit's power to innovate 
and an impressive record of technological creativity," said Ditlow.

In addition to perpetuating the safety myth, the Bush administration 
has been misleading the American public with its argument that 
stricter CAFE standards will lead to job loss and damage the economy. 
On the contrary, it is Detroit's sluggish pace in the global race to 
build the next generation of efficient vehicles that poses the 
biggest risk to the U.S. automotive industry.


Less is more: the 2004 Prius.
Even as Motor Trend has named the hybrid Toyota Prius its 2004 Car of 
the Year, the Big Three have stalled on their own hybrid plans. Ford 
intended to release its hybrid Escape SUV by the end of 2003, but is 
delaying the release until summer 2004. It has also scrapped its 2000 
pledge to improve the fuel economy of its SUVs 25 percent by 2005. 
And General Motors' hybrid Saturn VUE SUV won't hit the roads until 
model year 2006.

Of American car companies, General Motors has the most to lose. GM 
has long been the world's largest automaker, but its global market 
share is declining, and in 2003, Toyota's net income outpaced GM's by 
almost $3 billion. Toyota owes some portion of that success to the 
rapid growth of its hybrid sales. In 2003, Toyota sold more than 
20,000 hybrid Prius models in the U.S. -- only three years after 
introducing the car to market. That's an impressive number, 
especially given that the car's concept is still so confusing to 
American buyers that they often ask salespeople, "Where do you plug 
it in?" In 2004, Prius sales are expected to reach 47,000. Both 
Toyota and Honda have announced plans to have hybrid versions of 
every model in their inventories by 2007.

The Wheel Deal

Some industry analysts warn that by refusing to jump on the 
fuel-efficiency bandwagon, American automakers will perpetually be 
six years behind their Japanese counterparts. U.S. automakers counter 
that they're just following market cues. "We'd be happy to make more 
efficient cars if consumers wanted to buy them. What incentivizes us 
more than anything is the demands of the marketplace," said Eron 
Shosteck, a spokesperson for the Alliance of Automobile 
Manufacturers. "Our problem is that whether or not we produce 
fuel-efficient models to meet CAFE standards, American consumers by 
and large want bigger cars."


Stuck in traffic?
Photo: ORNL.
According to Shosteck, the argument that the gas-guzzling epidemic in 
America is Detroit's fault and could be solved merely by the 
production of more fuel-efficient cars is like saying that obesity in 
America is the clothing industry's fault and could be solved if only 
clothing manufacturers would start offering smaller sizes.

Strained analogies aside, Shosteck is right that most consumers in 
America aren't interested in buying fuel-efficient cars, largely 
because they have no price signals to reflect the environmental and 
political cost of gasoline consumption. It's no coincidence that 
Japan and Europe are leading in clean-energy development and their 
gas prices are three to four times higher than those in the U.S.

Some insiders in Detroit are starting to make this same argument. 
"DaimlerChrysler has publicly supported the gas tax, because that's 
the best way to change consumer behavior," said company spokesperson 
Schorr. "We've said to Washington, 'If you want consumers to treat 
fuel as a special commodity, you need to put a message directly into 
the marketplace.'"

But of course Washington politicians believe a new gas tax would be 
political suicide, which is why not a single Democratic presidential 
candidate proposed it as an instrument in their energy-independence 
toolkits. Furthermore, consumer behavior in the United States has not 
shown signs of changing in response to higher gas prices. Over the 
last four years, gas prices in the U.S. have risen 50 percent -- and 
gas consumption has also risen, from 7 million barrels a day to 8 
million.

Ultimately, American consumers might be persuaded by incentives -- 
strong federal tax breaks for clean vehicles, for instance, and 
increasingly popular state-level laws that allow owners of hybrid 
vehicles to drive in carpool lanes during peak commuting times.

What Americans clearly don't want to do is sacrifice style for 
substance -- and like it or not, the style of choice these days is 
the SUV. Perhaps the silver-bullet argument that'll persuade American 
consumers to buy fuel-efficient cars will come in the form of the 
hybrid Ford Escape SUV, set to hit showrooms this summer. Or it could 
be the forthcoming hybrid Toyota Highlander SUV, or the Lexus RX SUV, 
which the company is pledging will have all the power of a V-8 model 
with the fuel-efficiency of a Corolla sedan. These hybrids might just 
change minds as they turn heads.

- - - - - - - - -

Grist columnist Amanda Griscom writes Muckraker and Powers That Be. 
 Her articles on energy, technology, and the environment have 
appeared in publications ranging from Rolling Stone to The New York 
Times Magazine.



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