Report Details Tense CAFE Talks, White House Punts on Ethanol Requirements
August 13, 2012 9:13 AM
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Reduced corn production makes increased ethanol content in fuel worrisome
A new report has been published that looks at the tense negotiations between the White House and automakers over CAFE standards that would push fuel efficiency to 54.5 mpg by 2025. According to the report put together by the House Oversight and Government Reform Committee, the Obama administration "openly played automakers off of each other to gain a tactical advantage over the industry."
"The inevitable product of this reckless process was a pair of rulemakings that reflect ideology over science and politics over process. … Americans will be forced to drive expensive, unpopular and unsafe automobiles mandated by the Obama administration," stated the report.
However, representative Elijah Cummings (D-Maryland), rejected the report stating, "Any allegations that the White House is seeking to weaken the auto industry are simply ridiculous — this is the White House that saved the auto industry from its near-collapse."
"Japan is angry. Feel like they have been screwed." -- Toyota
The report also features notes from auto manufacturers involved in the negotiation process with Washington. The notes show that foreign automakers particularly were unhappy with the process and felt that the rules were jilted in favor of Detroit automakers. Despite misgivings, most foreign automakers agreed to the deal. Handwritten notes in the report from Toyota stated, "Japan is angry. Feel like they have been screwed."
Automakers maintain that the
would add about $2,000 to the cost of the average vehicle by 2025 or roughly $3,000 when costs from the 2012 to 2013 fuel efficiency rules are figured in. Automakers felt pressure to agree to the Obama administration's fuel economy standards over fears that California would enact even stiffer efficiency ratings if they turned Washington down.
While fuel-efficiency standards are set to increase in the coming years, the White House is working hard to get more ethanol into the nation's fuel supply to help reduce the need for foreign oil. However, the U.S. is currently in the middle of a corn shortage. Ethanol in the U.S. is primarily produced using corn. Corn production in the U.S. has fallen drastically due to drought, and livestock producers fear that increasing the ethanol content in gasoline will result in even less corn being available feed, therefore, raising prices of feed and food supplies.
Severe drought conditions have obliterated this year's corn crop [Image Source: MSNBC]
The Detroit News
reports that over 180 members of Congress are calling on the Obama administration to waive increased ethanol requirements in fuel. White House spokesman Jay Carney said, "The EPA has made clear that they're working closely with the Department of Agriculture to keep an eye on yields, and they will evaluate all the relevant information when assessing that situation."
EPA spokeswoman Alisha Johnson said, "We are in close contact with USDA as they and we keep an eye on crop yield estimates, and we will review any data or information submitted by stakeholders, industry and states relating to the RFS program."
The Detroit News 
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And What Would Happen if Left Up to the Car Manufacturers?
8/13/2012 8:30:47 PM
Same old same old? We would sell terrible MPG cars while the world continued to leave us in the dust? Europe has already reached a fleetwide 35MPG years ago and Japan has hit 45mpg fleetwide during the same period.
Can our car companies continue to only sell cars in the US? Seems like Hyundai (I cannot say I would buy one atm)is doing quite well with its assualt of high MPG cars.
Even Ford said it welcomes the high MPG requirements and they received no government bailout.
If left up to the domestic car companies, never mind that most if not all would have been extinct (including Ford), we would still be only able to buy cars with terrible fuel economy while oil prices make a steady march up. We probably would be laught at in other countries. What's even sadder is that many domestic makers have sold BETTER cars to foreign markets than what is available here.
If we cannot put better controls on the changing cost of oil, we must do something to help ourselves from ourselves.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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