Accord Near on 35 MPG Fuel Economy Standard

Accord Near on 35 MPG Fuel Economy Standard

Senate and House negotiators are closing in on an agreement on energy legislation that could come as early as today and that will significantly raise fuel economy standards but maintain separate rules for cars and light trucks.

Legislators have been close to an agreement since Monday, and an accord is likely by the time Congress resumes next week after its two-week Thanksgiving holiday.

"We have made much progress and I am optimistic we will reach an agreement soon," Rep. John Dingell of Michigan, chairman of the House Energy and Commerce Committee, said in a statement Thursday night. "It is my sincere hope that we pass an energy bill that includes a CAFE provision before the end of this year."  CAFE, the corporate average fuel economy standard, set the minimum fuel efficiency average an automaker's entire retail fleet must achieve each year. Dingell, other House representatives including Speaker Nancy Pelosi, and members of the Senate were holding talks Thursday evening, according to two people following the discussions.

The legislation would require automakers to achieve an average 35 miles per gallon for all passenger cars and light trucks by 2020 – the same level spelled out in an energy bill passed by the Senate earlier this year. A House bill had sought 32-35 mpg by 2022, with separate fuel economy requirements for passenger cars and light trucks such as minivans and SUVs.

The influential Dingell, who has auto manufacturers and many United Auto Workers members in his district, told Pelosi in a letter he released last week that he would accept the higher Senate standard. But he has continued to push for separate car and truck rules. Under current regulations passenger cars must achieve an average 27.5 mpg, and light trucks must average 22.2 mpg.

Environmental groups have supported the Senate version, saying the lower standards for trucks allow automakers to produce SUVs and pickups that gulp more gasoline than they should.

But they say they can live with separate car and truck levels if the average level across an automaker's product line is strict enough.

"It's all oil savings and pollution savings," said Deron Lovaas, vehicles campaign director for the Natural Resources Defense Council in Washington, DC. "The structural details are to some degree less important if it doesn't affect how high the building goes and how long it takes to build it."

While SUVs and light trucks are currently classified as non-passenger vehicles, "clearly most SUVs today are exclusively passenger cars," said Josh Dornan, a spokesman for the Sierra Club. "But under the proposed framework, if they are separate but all have to meet 35, it's better than their being off on their own."

Terril Yue Jones, Contributor

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.