Dorgan-Craig Proposal to Boost Fuel Economy Would Enhance Nation’s Energy Security, Says Alliance to Save Energy
Washington, D.C., March 14, 2007 – The Alliance to Save Energy today applauded two of its congressional vice-chairs, Sen. Byron Dorgan (D-N.D.), and Sen. Larry Craig (R-Idaho) for proposing a federally-mandated increase in the fuel economy of all new vehicles. The proposed 4 percent annual fuel economy increase, which would be in effect from 2012 to 2030, is part of the Security and Fuel Efficiency (SAFE) Energy Act of 2007 introduced by the two today. The increase would apply fleetwide to all new automobiles as well as to light, medium, and heavy trucks, including SUVs.
Equally significant, the bill would remove the current 60,000-vehicle-per-manufacturer cap on the availability of federal tax credits for purchasers of hybrid-electric vehicles and eliminate the “dual-fuel loophole.” The dual-fuel provision has provided additional credits toward meeting Corporate Average Fuel Economy (CAFE) standards to makers of vehicles that can – but rarely do – run on alternative fuels.
The bill also would give a tax credit to manufacturers and suppliers for 35 percent of qualifying investments in retooling, expanding, or establishing a manufacturing facility to produce hybrids and other advanced technology vehicles.
“The Alliance to Save Energy is proud to be associated with two courageous and creative national policy makers, Sens. Dorgan and Craig, whose bold initiative on fuel economy will help make our nation more energy-secure,” said Alliance President Kateri Callahan. “With the technologies that are available today, there is no reason to continue postponing the urgently-needed decision to make our entire vehicle fleet more fuel-efficient. In addition, repeal of the dual-fuel loophole is long overdue.”
Callahan added, “The Alliance also is pleased that today’s proposal expands consumer and manufacturer tax credits for hybrid-electric vehicles. By removing the 60,000-vehicle cap for each auto manufacturer, the bill would provide additional time to establish a robust market for hybrids by helping to make these fuel-sipping vehicles more affordable.”