Kerry and McCain Reach Compromise on CAFE Standards

in Kelly Field, Massachusetts, Spring 2002 Newswire
March 7th, 2002

By Kelly Field

WASHINGTON, March 07–In a last-ditch effort to bolster Republican support for his fuel- efficiency proposals, Senator John F. Kerry yesterday introduced what he called a “bipartisan compromise” on measures to reduce dependence on foreign oil and decrease greenhouse gas emissions.

The compromise, which came as debate over the omnibus energy bill continued in the Senate, keeps most of Kerry’s initial proposal intact, but incorporates a Republican-backed plan to allow automakers to trade up to 10 percent of the credits they earn for exceeding fuel efficiency standards to companies that fall short of the standards. The addition was designed to meld Kerry’s proposal with a competing proposal being offered by Republican Senator John McCain, R-AZ.

“This marries the two proposals and increases the chances for passage,” said David Wade, Kerry’s communications director. “It makes the new approach on CAF° [corporate average fuel economy standards] bipartisan.”

Wade said the compromise would be offered in place of the competing proposals as the energy bill is debated in the coming weeks.

Both Senators had proposed substantial increases over the current fuel-efficiency standards of 27.5 miles per gallon for cars and 20.7 for light trucks. The compromise bill would give automakers until 2015 to reach 36 miles per gallon for their combined fleets.

“The provision will provide for large oil savings and greenhouse gas savings,” Senator Susan Collins, R-Maine, said. “We should save more than 1 million barrels of oil per day by 2015.”

But the proposal could still face opposition from colleagues representing states with auto, oil and natural gas and agriculture interests, who fear that the tightened standards could hurt industries in their districts. A coalition of senators from Michigan and Delaware are working behind the scenes on an alternative amendment that would replace fuel-efficiency requirements with incentives for manufacturers, according to Tara Andringa, press secretary to Sen. Carl Levin, D-MI.

Senator Bob Smith, R-N.H, is among those who believe that “incentives would be more effective than mandates,” according to Genevieve Erny, a spokeswoman for the Senate Environment and Public Works Committee.

The House-passed energy bill includes no change in CAF° standards.

Published in The Eagle-Tribune, in Lawrence, Mass.