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Reuters US fuel standard can't be raised until 2004 models

Date: 07-Dec-01
Country: USA

Senate Democrats introduced a broad energy bill this week that seeks, in part, to boost vehicle fuel efficiency. Separately, the Transportation Department will soon begin reviewing whether to raise fuel requirements.

Current law requires the Transportation Department to notify automakers of changes in fuel standards at least 18 months before the start of a new model year.

With new vehicles traditionally introduced Oct. 1, the first model year that could reflect any change in fuel standards would be 2004, which will be in showrooms in October 2003. The government would have to notify automakers of that change by April 2002.

The Senate Democrats' legislation does not set specific fuel mileage requirements for vehicles. That language will be added to the bill after the Senate Commerce Committee approves a new standard, they said.

The Senate committee is due to launch that process yesterday with a hearing on vehicle fuel efficiency. Gasoline demand accounts for more than 40 percent of U.S. petroleum use.

A draft of the Senate bill circulated earlier among lawmakers included a provision, which was later removed, that would have required the fuel efficiency of automobiles built between 2007 and 2010 be raised to 36 miles per gallon while boosting the standard for light trucks to 27.5 mpg.

The current Corporate Average Fuel Economy standards, adopted by Congress in 1975 after the Arab oil embargo, require passenger cars to get an average 27.5 miles per gallon and light trucks to get 20.7 mpg.

At the time, light trucks were allowed to get lower mileage because they were used mostly by farmers and small businesses. Now, sport utility vehicles and other light trucks account for half of U.S. vehicle sales.

Senate Majority Leader Tom Daschle, Democrat of South Dakota, said this week he favors closing the SUV loophole.

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