Transcript PowerPoint Presentation - Should More Fuel

Should More FuelEfficient Vehicles be
Required by Law?
Geology 107: Our Dynamic Planet
By: Hillary Green
"This is a plan that will save gas
and result in less pain at the
pump for motorists without
sacrificing safety.”
--Transportation Secretary
Norman Y. Mineta
Proposed Plan
The Department of Transportation
announced a plan that requires auto
manufacturers boost fuel efficiency by six
percent on SUVs and light trucks by 2008.
All automakers would have to comply fully
by 2011. They hope to save
approximately 10 billion gallons of
gasoline over the life of vehicles built
between 2008 and 2011.
Facts and Figures
New system would divide light trucks into six
categories. Smaller vehicles would be
required to get better gas mileage than larger
trucks.
Currently automakers must maintain an
average of 21 mpg for light trucks and for
2007 model year will have to meet 22.2 mpg.
There is the option to use the old system
through 2010. Automakers would then have
to meet 22.5 mpg average in 2008, 23.1 mpg
in 2009, and 23.5 mpg in 2010.
Facts and Figures
 Under the new system, the
standards would range as
high as 26.8 mpg in 2008
for smaller vehicles( ex.
Chrysler PT Cruiser &
Toyota RAV 4) to 20.4 mpg
for large vehicles (ex.
Chevrolet Silverado and the
Dodge Ram)
 By 2010 the standards for
mpg would range from 27.8
to 20.8.
 Automakers earn credits for
exceeding the minimum in
certain categories and
apply them to a category
where they don’t meet the
standard.
Plan (continued)
 The auto industry and interest groups will
evaluate the plan over the next three
months. The proposal must be finalized by
April 2006 to take effect for the 2008
model year.
Auto Industry Reaction
 Automakers say to achieve higher fuel
efficiency they will have to build
smaller, lighter vehicles which are less
safe to drive.
 American automakers cite a
disadvantage against foreign
competitors because sales of large
SUVS must be offset by the sale of
smaller models to comply with the fuel
efficiency standards.
 Mike Jackson, chairman and chief
executive of Auto Nation Inc., the
nation’s largest publicly traded dealer
group, is suggesting a yearly increase
of 10 cents per gallon in the gas tax
over the next decade.
"At a time when
Americans are paying
record prices for gas,
the Bush administration
has sided with its
cronies in the auto
industry and rejected
real solutions."
--Dan Becker, director
of the Sierra Club's
global warming
program.
Critical Reactions
 Environmental
advocates say that this
plan doesn’t do enough
to reduce dependence
on foreign oil.
 Passenger cars and
light trucks, a vehicle
category that includes
pickups, minivans and
SUVs, only account for
about 40 percent of the
nation's oil use.
 Automakers who used
the old system would
only have to boost the
fuel economy an
average of 1.3 mpg,
less than the
requirements for 2004 2007.
"One of the fundamental problems with
the system is automakers can add
size, in some cases only a tiny
amount, and meet a dramatically
lower standard,” said David J.
Friedman, research director for the
clean vehicles program of the Union
of Concerned Scientists.
For example, the Subaru Outback,
currently in the smallest class of
vehicles, could be made less than
an inch wider and longer and move
up into the next size grouping,
thereby lowering its fuel economy
requirement.
 Critics say the American
market should dictate
consumers. Thanks to
Hurricanes Katrina and Rita,
they believe the high cost of
gasoline will naturally induce
people to buy more fuel
efficient cars.
The possibility of improved
fuel efficiency could force
automakers to raise prices of
vehicles. This might
discourage owners from
buying new cars, instead
they would keep their older,
inefficient cars for longer.
A good start but…
 This is a step in the right direction,
however, it is not doing enough:

Exempts the largest SUVS which are the
biggest part of the problem.

Doesn’t hold the automobile industry
completely accountable by
(1) giving automakers the option of continuing to
use the old system.
(2) creating loopholes that weaken requirements

Still maintains the dependency upon
foreign oil.
What can be done:
Make fuel-economy standards
applicable to all vehicles.
Require all automobile makers to
comply with the plan immediately.
Reevaluate vehicle classification.
Promote use of alternative sources of
energy through government refunds
and tax incentives.
References
 “New Fuel Proposal Fuels Debate” CBS News
http://www.cbsnews.com/stories/2005/08/23/nati
onal/main792271.shtml
 “Federal Mandate Fuels Debate” Tribune
Democrat http://www.tribunedemocrat.com/editorials/local_story_273123942.
html?keyword=secondarystory
 “Switching to Renewable Energy Gets Easier”
Brad Foss, Associate Press, MSNBC
http://msnbc.msn.com/id/7652881/
 “New Fuel Standards Proposed” Margaret
Webb Pressler, Washington Post
http://www.washingtonpost.com/wpdyn/content/article/2005/08/23/AR20050823006
25.html