
This morning President Bush put pen to paper (no doubt one of those really cool American President pens) and signed into law the Energy Independence and Security Act of 2007, all 822 pages of it. As we all know by now, the pillar of the law is an increase in Corporate Average Fuel Economy standards to 35 mpg by 2020. The increases will be built up over time beginning with the 2011 model year, which really isn't that far away. The measures regarding CAFE also don't apply fleetwide as one single standard, but will be adjusted based on the type of car or truck being measured. Nevertheless, after decades of nary a budge in this country's CAFE standards, an increase of some 40% is monumental and will likely begin immediately affecting the cars and trucks we buy.
We mustn't forget the path fraught with peril that this bill took to reach the President's desk. After being passed by the House of Representatives thanks to a compromise between Speaker of the House Nancy Pelosi (D-Calif.) and Rep. John Dingell (D-Mich.), the bill moved to the Senate where it was voted on twice and failed before a large $21.8 billion tax provision was removed. Until that point, the President had promised to veto the bill. Without the tax provision, however, the bill was finally passed by the Senate, and then reapproved by the House just yesterday.
In order to meet the standards, we expect automakers to begin producing more mild hybrids in the near future, with full-on parallel hybrids being at least an option on most vehicles after that. The use of modern clean-diesel engines will also proliferate, especially in light-duty half-ton trucks like the Ford F-150 and Chevy Silverado that would have trouble meeting their own CAFE targets with traditional V8 engines. Then there's more exotic technology, like the series hybrid system being developed by GM for the Chevy Volt. If successful, expect other automakers to very quickly follow suit with their own series hybrid drivetrains. There's lots of simple and more complex technologies on the table that automakers will utilize to increase their CAFE rating, and no doubt the cost of developing these systems will be passed on to the consumer to some degree, as well. Supporters of the bill, however, remind us that reducing our dependance on foreign oil is a very good thing, and in the end, we only get one Earth on which to live.
[Source: The Detroit News, Photo by Shawn Thew-Pool/Getty]













Reader Comments (Page 1 of 4)
EJ25RUN @ Dec 19th 2007 12:10PM
*draws donkey ears on bush*
Russell @ Dec 19th 2007 12:37PM
Goodbye RWD Impala
Jason @ Dec 19th 2007 5:10PM
That sign on the desk reminds me of "Mission Accomplished." What a joke. Keep in mind this bill takes effect in 2020, so it's going to be a long time before we see any progress on this. Big deal. What about all the oil we're using until then? It'll be too little, too late by then. You'll probably have Hillary in office for most of the time until then and not a damn thing is going to happen to make this country stronger economically or militarily.
And the reason Detroit signed off on it is because they knew they would have to face the music sooner or later, and this is a gift to them. 35 mpg? No problem. They have a long time to get there and it will be painless once we're there.
The real solution is to advance solar power and hydrogen. It blows my mind that we waste trillions of dollars in Iraq but we can't come up with a decent solar cell. If we get real energy independence this country will be prosperous well into the 21st century. On our current path we'll be a has-been to China in no time.
Benfolio @ Dec 19th 2007 12:20PM
HEE-HAW!
Reuben @ Dec 19th 2007 12:20PM
Don't forget to mention that it impacts the cars that we HAVE to buy...not necessarily the ones we WANT to...
CAFE is like making people lose weight by only making skinny clothes
Cornholio @ Dec 19th 2007 12:25PM
You don't HAVE to buy anything.
It mandates a higher fleet average for each manufacturer. Translated, that means more high-mileage cars, and beter mileage for the trucks and SUVs currently manufactured.
How can that possibly be a bad thing? Or are you just being alarmist?
Jeff @ Dec 19th 2007 2:18PM
Just what Americans need, more government regulators with their hands in our wallets. Maybe everyone in the country should just quit their jobs on New Years Eve and apply for welfare.
Raising gas taxes to force fuel economy is just as stupid of a commednt as everyone quitting their jobs.
get a life.
elprogramer @ Dec 19th 2007 2:21PM
^Are you an idiot? Do you understand how fuel efficiency mandates work?
Unless it's a Ferrari, it just becomes to cost prohibitive to manufacture cars that don't meet the efficiency limits; current plans that call for inefficient designs have to be seriously curtailed, if not canceled.
I mean, you can only squeeze so much juice out of an orange.
mike @ Dec 19th 2007 12:21PM
Finally. What this law will do is it will make Civics and Corollas get 55+ MPG. Fits will have to get 60+, so will Prius. Yes this law has loopholes, like Detroit lobbies ethanol standard, that basically says that Explorer that may use ethanol, but most likely will never be filled with it gets government MPG similar to current Honda Civic.
Yes loopholes are there, but this is better than what we have now.
nick @ Dec 19th 2007 12:22PM
If you really want to affect change, just slap an additional dollar tax on a gallon of gas and watch how quickly things change.. If you slap an additional gas tax on, no one can hide from it.
Reuben @ Dec 19th 2007 12:24PM
Hate to say it...but bingo
J M C 3 @ Dec 19th 2007 12:29PM
They should just tax short people who drive SUV's.That way they could subsidize SUV purchases for tall people who really need them.Short people should drive small cars.
CEMan @ Dec 19th 2007 12:36PM
How about some reality eh? There is NOT GOING TO BE A GAS TAX HIKE!! We are in an election cycle. THerefor we will not see any tax hikes at all.
Sure, it is the best route to encourage fuel savings but, and it is the 800 ton but, the American voters do not want to see any new taxes period. And Bush would certainly not sign it.
So, hoping for a higher gas tax is like hoping tolose twenty pound whilst sitting at Micky Dee's, NEVER GONNA HAPPEN.
So, given that, what do we do? Nothing?
nick @ Dec 19th 2007 12:36PM
Adam Smith is never wrong... The invisible hand works every time..
Guenther @ Dec 19th 2007 12:48PM
What if a short person has a note from his shrink that says he needs one because of his inferiority complex?
caddy dave @ Dec 24th 2007 10:22AM
Tax his land,
Tax his wage,
Tax his bed in which he lays.
Tax his tractor,
Tax his mule,
Teach him taxes is the rule.
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirts,
Tax his work,
Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he tries to think.
Tax his booze,
Tax his beers,
Tax him If he cries,
Tax his tears.
Tax his bills,
Tax his gas,
Tax his notes,
Tax his cash.
Tax him good and let him know
That after taxes, he has no dough.
If he hollers,
Tax him more,
Tax him until he's good and sore.
Tax his coffin,
Tax his grave,
Tax the sod in which he lays.
Put these words upon his tomb,
"Taxes drove me to my doom!"
And when he's gone,
We won't relax,
We'll still be after the inheritance TAX!!
Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
BR Fishing License Tax
Food License Tax
Fuel Perm it Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax),
IRS Penalties (tax on top of tax),
Liquor Tax,
Luxury Tax,
Marriage License Tax,
Medicare Tax,
Property Tax,
Real Estate Tax,
Service charge taxes,
Social Security Tax,
Road Usage Tax (Truckers),
Sales Taxes,
Recreational Vehicle Tax,
School Tax,
State Income Tax,
State Unemployment Tax (SUTA),
Telephone Federal Excise Tax,
Telephone Federal Universal Service Fe e Tax,
Telephone Federal, State and Local Surcharge Tax,
Telephone Minimum Usage Surcharge Tax,
Telephone Recurring and Non-recurring Charges Tax,
Telephone State
Telephone Usage Charge Tax,
Utility Tax,
Vehicle License Registration Tax,
Vehicle Sales Tax,
Watercraft Registration Tax,
Well Permit Tax,
Workers Compensation Tax.
STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago, and our nation was the
most
prosperous in the world.
We had absolutely no national debt, had the largest middle class in the
world, and Mom stayed home to raise the kids.
What happened? ?Can you spell 'politicians!'
And I still have to "press 1" for English.
mike @ Dec 19th 2007 12:23PM
If fat people were the reason terrorists are able to attack us and kill our soldiers, i am sure you would be all over the clothing shrinkage law.
Reuben @ Dec 19th 2007 12:25PM
Because Canada and Alaska sure messed us up good...
Big Rocket @ Dec 19th 2007 12:52PM
Reuben @ Dec 19th 2007 12:25PM wrote:
"Because Canada and Alaska sure messed us up good..."
Right... because the US doesn't import oil from OPEC...
"The United States imports about 2 billion barrels annually from OPEC nations..." That's a lot of money going to states that sponsor terrorists, or to states whose populations are sympathetic to terrorists.
Sources:
1) http://www.boomantribune.com/?op=displaystory;sid=2007/12/6/73256/8453
2) http://www.eia.doe.gov/emeu/ipsr/t35.xls
Calculation: =SUM(B18:M18)*30
3seriesisking @ Dec 19th 2007 2:28PM
The oil companies own us. Every one of us. If getting away from that is in any way possible, I'll put my money in and have a smile on my face.