WASHINGTON (Dow Jones)--U.S. House Energy and Commerce Committee Chairman John Dingell, D-Mich., Tuesday said growing concerns about global warming and energy security call for an alternative to the nation's roughly 30-year-old Corporate Average Fuel Economy program.
The CAFE program, which requires auto manufacturers to meet certain fuel economy rules, should be replaced by new federal laws that reflect new technologies like hybrid cars that can run on electricity and clean biofuels that emit less carbon dioxide into the atmosphere, Dingell said.
California Gov. Arnold Schwarzenegger had a similar idea when he backed a low carbon fuel standard for the state. That program aims to reduce gasoline use, but instead of doing it through tougher fuel efficiency requirements, it requires fuel providers to use low-carbon fuels like ethanol and biodiesel.
Dingell said he isn't sure what kind of legislation he will ultimately endorse.
But he argued in general that the CAFE program is outdated and the program may need to be scrapped for one that would better address goals to boost clean energy and reduce U.S. oil dependency.
"I'm not convinced that the system we have now of CAFE is the mechanism we need to have to address the new problems we have," Dingell told reporters on the eve of a significant hearing slated for Wednesday afternoon that will feature testimony from top executives from the nation's automakers. "It's my view we need a new approach and that we need to begin to look at other things."
"It is my view that we have done very well with corporate average fuel economy. It is now my view, however, that we have to go further," he added.
Still, the congressman, who has been an ally to the auto industry, said he doesn't know yet what that alternative program should be.
"I don't now have an alternative," Dingell said. "I'm not suggesting anything at this minute."
Meanwhile, the senior Democrat's colleagues on Capitol Hill are determined to move forward with legislation that would increase CAFE standards.
Rep. Edward Markey, D-Mass., for instance is set to introduce a bill Tuesday that would require cars and light trucks to improve their fuel economy standards by at least 4% every year. The plan alreadyhas been embraced by public interest groups that argue that better fuel efficiency will save Americans money.
Dingell called Markey "a friend," but noted that the two have always had differences over fuel efficiency over the years.
Additionally, Sens. Ted Stevens,R-Alaska, Dianne Feinstein,D-Calif., and Barack Obama,D-Ill., have all unveiled bills meant to boost fuel economy.
Still, Dingell said he doesn't think such proposals are the right approach.
"I think we have carried fuel efficiency about as far as we can," he said.
Dingell said he'll pose several questions to the auto executives to get their take on different policies meant to mitigate climate change.
Witnesses for Wednesday's House energy panel hearing include the heads of General Motors Corp. (GM), Ford Motor Co. (F), the North America unit of Toyota Motor Corp. (TM) and the Chrysler Group of Daimler-Chrysler (DCX) as well as the president of the United Auto Workers.
"I think it will be a very interesting hearing," said Dingell. "We're going to ask a lot of very tough questions tomorrow of everyone there."
Source: Maya Jackson Randall, Dow Jones Newswires; 202-862-9263; Powered By E-signal