CAFE STANDARDS
Energy bill is good news for workers, environment
It’s a bill that produces several winners — workers, employers and the environment.
And for the first time in 32 years, the United States is increasing auto fuel economy standards or requirements right here at home.
In December President Bush signed the Energy Independence and Security Act of 2007, a compromise bill approved by the U.S. House and Senate that increases corporate average fuel economy (CAFE) standards for passenger cars and light trucks combined to an average of 35 miles per gallon by 2020, up from 27.5 mpg for cars and 22.5 mpg for light trucks.
Government CAFE standards require that car manufacturers meet a certain miles-per-gallon average for every fleet they produce.
The bill’s passage is good news on several fronts, including:
• Reduced gas consumption.
• More stable U.S. energy security.
• A reduction in greenhouse gas emissions.
“The UAW strongly supports this historic bill, which contains aggressive but still achievable fuel economy requirements,” said UAW President Ron Gettelfinger. “It will help consumers and the environment, and at the same time protect U.S. jobs.”
The bill is the result of hard work by key stakeholders in the legislation, including UAW members, their families environmental advocates and auto manufacturers.
“This bill is green and it protects jobs,” said UAW Legislative Director Alan Reuther. “It has a very aggressive fuel economy standard, which will reduce foreign oil
dependence and emissions from fossil fuels. But it also includes elements that protect domestic production and jobs, which make the standard more achievable.”
Reuther said production and jobs are supported with the small car/anti-backsliding provision, which continues the distinction between foreign and domestic passenger car production and therefore keeps the pressure on the companies to keep small car production in the United States. This protects 17,000 UAW members who assemble small cars in this country, along with tens of thousands who produce parts for these vehicles.
In addition, an extension of the CAFE flex-fuel credits allows alternative-fuel vehicles a credit against the CAFE standard. It also includes help for U.S. companies to retool to produce advanced- technology vehicles, hybrids and the key components that go into those vehicles.
Another key part is a provision that will continue the distinction between passenger cars and light trucks in the CAFE program. This will diminish any negative impact on light truck production and jobs by ensuring there will be different mileage rules for these different types of vehicles.
