New Fuel Proposal Fuels Debate

Gov't, Environmentalists Disagree Over New Efficiency Standards

(CBS/AP)  With gas prices continuing to rise, the Bush administration on Tuesday proposed new rules to compel auto manufacturers to make pickup trucks, minivans and some sport utility vehicles more fuel efficient. Environmentalists said the plan would do little to wean the nation from its dependence on foreign oil.

The plan, announced by the Department of Transportation in Atlanta, CBS News Correspondent Mark Strassmann reports, demanded that by 2008 manufacturers boost fuel efficiency on SUVs and light trucks by six percent. All automakers would have to comply fully by 2011.

"This is a plan that will save gas and result in less pain at the pump for motorists without sacrificing safety," Transportation Secretary Norman Y. Mineta said.

CBS News Correspondent Jim Axelrod reports that soaring gas prices are changing the way some are doing business. An Ohio amusement park reduced the cost of admission to compensate for the price of gas since most of its visitors drive from 4 to 5 hours away.

Mineta, speaking at news conferences in Atlanta and Los Angeles, said the program was expected to save about 10 billion gallons of gasoline over the life of vehicles built from 2008 through 2011.

Strassmann adds that environmentalists were not impressed, saying American drivers now use 11 billion gallons a month.

The U.S. currently consumes about 140 billion gallons of gasoline per year, according to Energy Department statistics.

But the plan would not apply to the largest SUVs, such as the Hummer H2. Passenger cars, already required to maintain an average of 27.5 miles per gallon, also would not be covered by the changes.

Environmental advocates said the plan failed to go far enough to reduce the nation's dependence on imported oil while creating new loopholes that would weaken the requirements. Passenger cars and light trucks, a vehicle category that includes pickups, minivans and SUVs, account for about 40 percent of the nation's oil use.

"At a time when Americans are paying record prices for gas, the Bush administration has sided with its cronies in the auto industry and rejected real solutions," said Dan Becker, director of the Sierra Club's global warming program.

Sen. John Kerry, D-Mass., called it "backward looking" and "another lost opportunity to help our security, economy and environment."

John D. Graham, director of the Office of Management and Budget's office of information and regulatory affairs, countered that the plan was projected to save more fuel than any previous rulemaking in the history of the light-truck CAFE program.

Under the current system, automakers must maintain an average of 21 mpg for light trucks and will have to meet 22.2 mpg for the 2007 model year. It represents an average of manufacturers' entire fleet of light trucks.

The new system would divide light trucks into six categories based on size. Smaller vehicles would have to get better gas mileage than larger trucks.

Automakers could opt to comply with the old system through 2010 or to meet the standards in the six categories. If they stayed with the old system, they would have to meet a 22.5 mpg average by 2008, 23.1 mpg in 2009 and 23.5 mpg by 2010.