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For Immediate Release:
12/13/2007
For More Information:
Contact Matt Elliott
(609) 394-8155 ext. 310

U.S. Senate Passes Historic Increase in Fuel Economy; Environment New Jersey Applauds Senators Menendez, Lautenberg

Trenton – Today, with the support of New Jersey Sens. Frank Lautenberg and Bob Menendez, the Senate passed a bipartisan energy bill that, if enacted, represents the first time in more than thirty years that Congress has acted to increase fuel economy.

“After more than thirty years, Congress is finally poised to reduce our dangerous oil addiction,” said Doug O’Malley, Environment New Jersey’s field director.  “Both New Jersey Senators deserve strong credit for breaking the decades-long log jam on fuel economy.”

The bill will increase fuel economy standards to 35 miles per gallon fleetwide by 2020, which will save 1.1 million barrels of oil per day and save consumers $22 billion in 2020.  By 2030, these standards will reduce annual global warming emissions by 424 million metric tons a year, the equivalent of taking 77 million of today’s cars off the road.

The threat of a veto by President Bush and a filibuster by Senate Republicans led Senate leaders to drop a renewable electricity standard (RES) from the bill. An energy bill with a renewable electricity standard passed the House twice this year and garnered a majority in the Senate but fell short of the 60 votes needed for closure.

The House RES would have required that utilities generate 15 percent of their electricity from renewable energy such as wind, solar, or biomass, or through energy efficiency savings by 2020. Senate leaders were also forced to drop a package of tax credits that would have shifted billions of dollars from the oil industry to clean, renewable energy sources including wind, solar and geothermal technologies.

“Increasing our use of clean renewable energy is essential for a clean energy future,” O’Malley said. “While we are disappointed that a renewable electricity standard was not included in the energy bill, Speaker Pelosi and Majority Leader Reid are committed to getting it done and we look forward to working with them soon.”

The Senate bill also contains beneficial reforms to Department of Energy (DOE) authority to issue energy efficiency standards for appliance and equipment products, and establishes new efficiency standards for products such as light bulbs, dishwashers and clothes washers. The lighting standard alone would reduce global warming pollution by 100 million metric tons in 2030 relative to DOE projections. The bill also will save taxpayers money by increasing efficiency in federal government buildings.  A provision to tighten federal building codes was dropped from the House bill.

While the bill’s fuel economy increase is identical to that called for in the President’s 2007 State of the Union address, the White House has threatened to veto the bill unless states and the EPA are preempted from regulating global warming pollution from cars.

“The President called for an increase in CAFE in his 2007 State of the Union address and Congress is going to deliver it to him,” said O’Malley. “The White House should stop trying to trample on states’ rights and sign this bill to deliver much-needed oil savings for New Jersey.”