2. ENERGY POLICY: House Dems pull the plug on CAFE showdown (08/02/2007)

Alex Kaplun, E&E Daily reporter

House Democratic leaders yesterday decided to scrap a highly anticipated showdown vote on vehicle fuel efficiency.

Both Reps. Ed Markey (D-Mass.) and Baron Hill (D-Ind.) said yesterday they would not ask the House to vote on their respective corporate average fuel economy (CAFE) amendments, punting the issue at least until energy conference negotiations and possibly to a climate change bill expected to come up in the fall.

Markey said in a statement yesterday that he decided to pull his amendment after consulting with House Speaker Nancy Pelosi (D-Calif.), even though he believed he had the votes to move the legislation. While Pelosi personally favored a CAFE standard of 35 miles per gallon, industry lobbyists said she did not whip votes on the legislation and it appeared Markey was not assured of the votes needed to pass the bill.

Supporters of the measure sponsored by Hill and Rep. Lee Terry (R-Neb.) also decided yesterday not to pursue a vote on their amendment, which would require that the average standard for the overall vehicle fleet sold in the United States be no less than 32 mpg and no greater than 35 mpg by 2022. That legislation was framed in large part by its sponsors as an alternative to the Markey plan, and lobbyists on both sides of the issue said the lawmakers would likely not seek a vote on their bill if party leaders scrapped the vote on the Markey's bill.

Even so, Markey yesterday insisted his CAFE provision -- or something like it -- would survive conference negotiations with the Senate.

"I am satisfied that our strength in both the House and the Senate is sufficient to ensure that the progress we have made already to update our fuel economy standards will win out in conference," he said. "The country cannot afford to accept less than a 35 mpg standard if we are to wean ourselves off our addiction to imported oil."

Democratic leaders -- including Pelosi -- have said they may pursue the conference strategy on CAFE, and Pelosi again hinted yesterday that she may try to take such action.

"The American people -- in every region of the country -- overwhelmingly support stronger fuel efficiency standards, and we will have an opportunity to address this issue shortly," Pelosi said. "The Senate energy bill does contain a CAFE provision, which I support."

Indeed, the Senate energy package contains nearly the same language on CAFE as the latest version of the Markey proposal, calling for a mandate of 35 miles per gallon for passenger cars and light trucks a year later than the Markey bill. Both bills also contain the same language on CAFE increases beyond those dates -- applying a "maximum feasible" standard -- and contain exemptions for "work trucks."

For his part, Energy and Commerce Committee Chairman John Dingell (D-Mich.) -- himself a cosponsor of the Hill-Terry plan -- said he would like to pursue the issue in the fall as his committee drafts climate change legislation.

"I commend Ed Markey and Baron Hill for their decisions to withdraw their amendments on fuel efficiency standards in the interest of promoting passage of a consensus energy bill," he said. "I look forward to working on this matter with great care in the fall as part of an economy-wide system of regulating greenhouse gases."

Auto industry representatives yesterday said they will continue to press lawmakers to adopt the Hill-Terry plan in the coming months.

"There is strong, bipartisan, business, industry, labor and consumer support for Hill-Terry, and we will continue to work toward its passage," said Dave McCurdy, president of the Alliance of Automobile Manufacturers.

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