The debate over fuel economy standards has uncovered some of the hidden costs of saving at the pump
A café used to be a place to get a nice hot cup of coffee, and maybe a sandwich. But not at $3 a gallon, it isn’t. Now its uppercase CAFE, and we are talking about Corporate Average Fuel Economy Standards.
The National Highway Traffic and Safety Administration, responsible for establishing and amending the standards, defines them as the sales weighted average fuel economy, expressed in miles per gallon, of a manufacturer’s fleet of passenger cars or light trucks with a gross vehicle weight rating of 8,500 lbs. or less, manufactured for sale in the United States, for any given model year. The standards are complicated, stemming from the energy crisis of the mid-seventies, and are under great scrutiny in the wake of skyrocketing pump and barrel prices. The arguments over CAFE standards have highlighted the complexity of reducing petroleum dependence, where often reducing it in one area means a hidden cost in another area.
Safety. An automaker’s fleet of passenger cars must average 27.5 miles per gallon, a standard unchanged since 1990. In March, the Bush Administration reformed the standards for light trucks (including SUVs), advocating a size-based standard, rather than averaging across the fleet. Among other things, this is in response to a National Academy of Science study that says shaving size leads to higher death rates for passengers – and the easiest way to reduce mileage is to make smaller vehicles. The Administration is looking at reforming standards for cars in this manner.
Job loss. Japanese automakers Toyota and Honda averaged above 33 miles per gallon in 2005, and had few CAFE worries. Because they sell such high numbers of small cars, their fleet-average mileage is much higher than DaimlerChrysler and Ford, whose moneymakers are larger trucks and SUVs. The American giants were well behind the Asian automakers at under 27 miles per gallon averaged across the fleet.
Tighter CAFE standards have been cited as potentially harmful to American carmaker stalwarts such as Ford and GM. A recent Wall Street Journal editorial recommended that congress should call this idea the "U.S. Automaker Chapter 11 Promotion Plan."
Reforming the standards to accommodate each car’s individual "footprint" would allow American carmakers to keep their market share of SUVs and trucks – at least for the time being – while raising fuel economy standards for their smaller vehicles.
Environment. One way to shave size off a car is to use alternatives to cast iron and steel components, such as plastics, aluminum and composites, which can use more petroleum in their development and manufacturing than is actually saved while driving the car. Cash is saved at the pump, but what are the underlying costs to the environment?
Reforming the standards and adding more "carrots" such as credits for the meaningful implementation and promotion of domestic fuel alternatives that don’t use more energy than they make could actually boost American automakers. The industry could take a cue from the high-tech sector and its relationship with government – innovation and job creation pays.
What are Clark County’s solutions?
While the national focus remains on Detroit and Washington DC, the complexity of building and running a car that reduces dependence on petroleum, is safe and efficient and is manufactured in a way that does not negate the savings at the pump, begs the big-picture question: Where is the hidden petroleum in our every day business transactions?
This question extends far beyond a resolution at the gas pumps. Local restaurants such as Burgerville cut down the petroleum in their processes by utilizing locally farmed goods. In order to meet new green building standards in Washington, builders must find their materials within a certain radius of the project. Last December, C-Tran began installing a series of solar powered bus stops.
What are the ways that your business cuts down on petroleum use? Have you changed the way you do business to save money at the pumps? Have you discovered any hidden costs in those savings? Write to editorial@vbjusa.com, and we may use your story.
