$4 Gasoline and Fuel Economy: Auto Industry at a Crossroads

More Miles Per Gallon: Consumer Solutions to $4 Gas

Select Committee Hearing to Discuss Fuel Economy As Solution to High Prices

At a time when gasoline costs $4 or more no matter where you go, high mileage cars, trucks and SUVs play a key role in helping consumers fight against record high gas prices. Money-saving hybrid and electric technology solutions exist today that can increase the gas mileage of cars to over 100 miles per gallon, but have not yet permeated the market to give consumers more choice on car lots across the country. Along with aggressive moves by the auto industry, the federal government could speed up the process, reaching higher mileage standards faster by using more realistic gas price assumptions when deciding what fuel economy standards to set.

On June 26th, The Select Committee on Energy Independence & Global Warming discussed the future role of the auto industry and our federal government in fighting gas prices and examine the fuel economy standards proposed by the National Highway Traffic Safety Administration in response to the enactment of the Energy Independence and Security Act (EISA) of 2007. NHTSA’s proposal calls for the fleet of cars and light trucks to average 31.6 miles per gallon by model year 2015 – but when calculating these standards, NHTSA used Energy Information Administration (EIA) assumptions about gas prices that defy reality, ranging from $2.42/gallon in 2016 to $2.51/gallon in 2030.

The administration concedes that gas prices are the most critical element in determining mile per gallon increases in America’s vehicle fleet. At a hearing before the Select Committee earlier this month, the EIA said NHTSA should use the high end analysis for gas prices, which would have the effect of significantly raising the achievable miles per gallon in future vehicles.

WHAT: Select Committee Hearing, “$4 Gasoline and Fuel Economy: Auto Industry at a Crossroads”

WHEN: Thursday, June 26, 2008 at 1:30 PM

WHERE: 210 Cannon House Office Building, Washington, DC

OPENING STATEMENT: Chairman Edward J. Markey

WITNESS LIST:
The Honorable Tyler Duvall, Assistant Secretary for Policy, Department of Transportation
Mr. Dominique Thormann, Senior Vice President, Nissan North America, Inc.
Mr. Shai Agassi, Founder and CEO, Project Better Place
Mr. Torben Holm, Consultant, DONG Energy A/S
Mr. Jeffrey R. Holmstead, Partner, Bracewell & Giuliani LLP

Click here for the full hearing transcript.

VIDEO:

Full video archive of hearing.

Markey Q&A to Dept of Transportation PART 1

Markey Q&A to Dept of Transportation PART2

Shai Agassi opening statement

Torben Holm opening statement

Additional Q and A: Wind, solar powering 6 million cars

PHOTO:

Chairman Markey with witnesses of Panel 2

Hon. Tyler Duvall

Rep. Ed Markey

Panel 2 witnesses

Shai Agassi

Torben Holm

Domonique Thormann

John Hall

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