http://www.commondreams.org/news2005/0811-03.htm
Public Citizen
FOR IMMEDIATE RELEASE
AUGUST 11, 2005
11.43 AM
CONTACT: Public Citizen
(202) 588-1000
Energy Bill Extends Oil-Wasting Fuel Economy Loophole
Legislation Shields Automakers From Legal Challenge, Will Increase
Oil Consumption
WASHINGTON - August 11 - A little-noticed provision in the energy
bill signed Monday allots automakers bogus fuel economy credits for
building cars capable of running on alternative fuel such as ethanol
even if the cars almost always use gasoline. The provision nullifies
a lawsuit filed by public interest groups against the Department of
Transportation.
The "dual fuel" loophole allows automakers to claim credit for
producing "dual fuel" vehicles, boosting their fuel economy numbers
on paper by as much as 1.2 miles per gallon. The loophole would
increase U.S. gas consumption by 15 billion gallons over the life of
its 10-year extension.
The loophole was originally extended by the Department of
Transportation and was challenged in 2004 in a lawsuit by Public
Citizen, the Natural Resources Defense Council and the Center for
Auto Safety. That lawsuit was dropped Wednesday after the "dual fuel"
provision was signed into law.
Originally intended to reduce oil consumption, the loophole was
created to promote production of vehicles that can operate on 85
percent ethanol (E85) in addition to gasoline. But with few gas
stations supplying E85 - only 221 of 176,000 in the United States -
and with most "dual fuel" vehicle owners unaware that their vehicles
take alternative fuel, nearly all drivers fill their "dual fuel" cars
with gasoline only. A March 2002 Department of Transportation report
found that "dual fuel" vehicles run on gasoline more than 99 percent
of the time.
Daimler/Chrysler has taken the greatest advantage of these phony
mileage credits, boosting the fortunes of the oil-producing countries
Dubai and Kuwait, which became the company's first and third largest
private investors earlier this year. Ford and GM also have
increasingly used these credits to avoid having to increase the fuel
efficiency of pickup trucks and SUVs.
"Despite the rhetoric, the energy bill just moves the nation toward
more oil use, not less," said Dan Lashof, science director for NRDC's
Climate Center. "Instead of helping Detroit catch up in the
technology race, the bill gives automakers an accounting gimmick."
"Knowing that they couldn't defend the 'dual fuel' loophole in court,
the Big Three ran to Congress," said Joan Claybrook, president of
Public Citizen. "Once again, Detroit is substituting lobbying clout
for innovative engineering."
Unable to continue their court challenge, Public Citizen, NRDC and
the Center for Auto Safety will ask Congress to reform the "dual
fuel" program so that any fuel economy credits reflect actual use of
alternative fuel.
"The 'dual fuel' loophole can't withstand public scrutiny," said
Clarence Ditlow, director of the Center for Auto Safety. "The auto
industry's friends in Congress hid the extension of this
counterproductive program in a 1,700-page energy bill. This cries out
for a correction."
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