Bush: Raise fuel-efficiency standards

US president Bush on Thursday said he wants to raise fuel-efficiency standards on automobiles, as members of both parties jockeyed for political position on the issue of rising gas prices. Bush called on the US Congress to give him the authority to set the standards for passenger cars sold in the US as a means of reducing the nation's demand for gasoline. The president's comments were soon followed by a letter from Transportation Secretary Norman Mineta to the GOP House and Senate leaders. "At the president's request, I hereby ask that the Congress take prompt action to authorize the US Department of Transportation to reform fuel economy standards for passenger automobiles," Mineta wrote. Congress first set the passenger car standard for fuel economy in 1975, and it has remained at 27.5 miles per gallon since 1990. The mileage is a weighted average of an automaker's fleet, not a requirement for individual models. Mineta said the administration would oppose any increase in fuel standards that did not include rules that would prevent cars from becoming less safe as carmakers reduced their weight to help gas mileage.

Republicans proposed an amendment Thursday that would give the Transportation Department authority to issue fuel efficiency standards for passenger vehicles, expand tax incentives for the use of hybrid vehicles and push for more research into alternative fuels and expansion of existing oil refineries. It would also provide most American taxpayers with a US$100 rebate check to offset the pain of higher pump prices for gasoline. However, the GOP energy package might face tough sledding because it also includes a proposal to open part of the Arctic National Wildlife Refuge in Alaska to oil exploration, which most Democrats and some moderate Republicans oppose. Wednesday, on the other side of the aisle, Democrats called for a new energy bill and federal legislation to punish price gougers. House Minority Leader Nancy Pelosi of California said Democrats want to roll back billions in tax breaks for oil companies. On Thursday, she reiterated her party's interest in forcing oil companies to ease the burden of high gas prices. Senator Bob Menendez, a New Jersey Democrat, called Thursday for an amendment that would suspend the federal gas tax for 60 days, which he said would save taxpayers $100 million dollars per day. He said the lost tax revenue would be covered by repealing $6 billion worth of tax breaks for major oil companies. If any of the proposals survive election-year partisanship to pass, Democrats and Republicans said they would be unlikely to affect the price of gas in the short term. That opinion was shared by Federal Reserve chairman Ben Bernanke during congressional testimony Thursday. "Unfortunately there's nothing, really, that can be done that's going to affect energy prices or gasoline prices in the very short run," Bernanke said. He warned, however, that record high oil prices remain a concern that could pose a risk to both economic growth and the inflation outlook.
(CNN 060428)

Thank gob the Powers That Be are finally looking at this as a crucial, serious issue. The arguments as to the source of high gas prices and reducing the stress on consumers are completely misguided attempts at political hot potato, but overlying all of this is the question whether it's too little, too late? Initiate the gas tax/carbon tax already! Yes, there will be economic hardship initially, but in the long run the ones that are using the finite resources will pay proportionately for their profligate lifestyles. If they can afford it, they should pay dearly for it. It's the only way to get our runaway consumption under control!!!