May 19, 2005
The Senate Energy Committee has turned down a Democratic plan to require SUVs and minivans to become more fuel efficient and achieve the same gasoline mileage as passenger cars over a six-year period.
The Democrats, led by Senator Dianne Feinstein of California wanted to require SUVs and other light trucks to meet the same 27.5 mile-per-gallon rule that passenger cars must meet by 2011. Feinstein tried to add the plan to a broad energy bill being debated by the committee. The panel voted against it, 15 to 7.
The Democrats claimed that closing the "SUV loophole" would reduce U.S crude oil imports, cut down on emissions and save consumers money at the pump.
Opponents said imposing a higher fuel standard would place further burdens on U.S. automakers that are already suffering financially, endangering thousands of high-paying jobs. They also said the government should not dictate what vehicles consumers buy.
Feinstein argued that consumers are on waiting lists to buy more fuel-efficient hybrid vehicles made by Japanese automakers, while U.S. companies are stuck with growing inventories of gas-guzzling SUVs.
Ford Motor Co and General Motors have seen demand for their once highly-profitable SUVS plunge in recent months as retail gasoline prices rose to record highs.
U.S. oil demand averages about 21 million barrels per day, with imports accounting for 3 out of every 5 barrels consumed. Gasoline use makes up 40 percent of total oil demand.
