Detroit Free Press: Bush likely to veto Senate fuel economy provision if it passes

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Bush likely to veto Senate fuel economy provision if it passes
October 16, 2007

By JUSTIN HYDE

FREE PRESS WASHINGTON STAFF

The Bush administration bucked up the U.S. auto industry today in the fight over tougher fuel economy standards, telling Congress the president likely would veto an energy bill if it contains the Senate’s fuel economy provisions

The move creates another hurdle for backers of the Senate’s plan to set a standard of 35 miles per gallon by 2020 for news cars and trucks, who were unable to force a vote on the proposal in the House after intense lobbying by Detroit automakers and Toyota Motor Co.

In a letter to House and Senate leaders Monday, Allan Hubbard, director of the president’s National Economic Council, said the administration would recommend a veto of any energy bill if it combined cars and trucks under the same fuel economy target, as the Senate bill does. Hubbard said President George W. Bush would also receive a recommendation to veto the bill for several other reasons, such as tax increases or mandating renewable energy sources for electric utilities.

Environmental groups have long decried the “SUV loophole” in fuel economy regulations, saying automakers can game the differences between cars and trucks to avoid tougher standards. For 2008, cars must average 27.5 m.p.g., while trucks can average 22.5 m.p.g.

The industry maintains the rules reflect the differences between cars and trucks, and warn that combining the two would force tens of billions of dollars in upgrades to truck models. The industry’s preferred bill would set a lower standard of 32 to 35 m.p.g. by 2022, but keep cars and trucks under separate rules.

White House spokeswoman Dana Perino said Tuesday that the administration wanted to ensure that fuel economy regulators “have that authority to be able to make decisions based on the safety of the vehicle, the economic impact, as well as the fuel efficiency and how far we can go and how fast.”

http://www.freep.com/apps/pbcs.dll/article?AID=/20071016/BUSINESS01/71016076/0/NEWS01