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REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION

CAFE ANNOUNCEMENT
BALTIMORE, MD

MARCH 29, 2006
10:30 AM

Good morning, and thank you for being here today. I am in Baltimore this morning because this city’s highways, bridges, and tunnels are among the most congested in the nation. And a good deal of that traffic comes in the form of pick-up trucks, sport utility vehicles, and minivans.

Commuters here understand how important these light trucks are to maintaining our way of life, our mobility, and our economic vitality. But Marylanders also understand that we have to act now to end our addiction to foreign sources of oil, and they are not intimidated by big challenges.

It is of course our President who set the goal of reducing our dependence on foreign sources of oil to make America more secure. So I am here today to announce the Department of Transportation is doing its part – with tough new fuel economy standards designed to make the eight and a half million light trucks sold each year in this country more fuel efficient.

These new standards, which are called the Corporate Average Fuel Economy standards (CAFE), represent the second time that the Bush Administration has increased the mileage requirements for light trucks and the first complete reform of this program since it was created in 1979.

The standards will reduce our fuel consumption by encouraging automakers to bring the same energy and innovation to fuel economy that they have been applying to vehicle design, safety, and product reliability for decades.

The new standards represent the most ambitious fuel economy goals for light trucks ever developed in the program’s twenty-seven year history. And more importantly, they close the loopholes that have long plagued the current system.

Much has changed in seven months since our initial proposal. So the rules that I am announcing today include significant improvements that strengthen the proposal that I first outlined last August.

First, the final standards include individual miles-per-gallon goals for all passenger trucks sold in the United States. That is because the current approach to light truck standards is too easy to get around. There is no incentive in the current structure to encourage automakers to apply fuel-saving technology to their largest and most profitable vehicles.

Under the new CAFE system, manufacturers will have to add fuel-saving technology to all passenger trucks. Not only is this good for fuel economy, but it is also good for safety. Our new standards will encourage automakers to use cutting-edge fuel-saving technology instead of making weaker, lighter vehicles that put passengers at risk during crashes.

We also worked hard to make sure that no single SUV gets a free pass under these new standards. So we have included for the first time ever the largest sport utility vehicles on the market today – those that weigh between 8,500 and 10,000 pounds – in our final standards starting in 2011.

Just by including theses large sport utility vehicles, we have increased fuel savings by ten percent, more than 250 million gallons a year.

Finally, the new fuel economy standards strengthen the miles-per-gallon targets for all light trucks.

We took a good, close look at automakers’ plans, examined new technology that is in use or under development – like hybrids and the latest generation of diesel-burning engines – and decided that we could ask more of the manufacturers than we proposed last August.

This was no easy decision. But seven short months have taught us that we can and we must save more fuel.

In August, we proposed the highest ever light truck targets of 24 miles per gallon, up from the current average of 21.6.

We have now asked even more from automakers by including 240,000 of the world’s least fuel efficient SUVs. This means that, for some light trucks, the fuel-economy target will be 28.4 miles per gallon, higher than today’s standard for passenger cars.

Many of the changes to the CAFE program will be mandatory beginning in 2011. Automakers that can and want to move faster can opt into our reformed program earlier.

Regardless, the changes in the new standards will have a significant impact on the way that companies produce, design, and market their light trucks. And our schedule allows manufacturers enough time to make the adjustments needed so that they can comply with the new standards.

By the time that our reforms are fully in place, these new light truck standards will save two billion more gallons of fuel than our earlier proposal, for a total savings of 10.7 billion gallons.

We are focusing our efforts today on light trucks because that is where we believe that we can achieve the most savings in the shortest period of time.

In addition, as part of the Energy Bill that President Bush signed last summer, Congress directed the Department to study ways to improve fuel economy standards for all passenger cars sold in the United States. We are working on that project, and expect to send a report to Congress this August.

Saving fuel is as important to our national security and economic vitality as it is to preserving the environment. President Bush understands that and is committed to encouraging the kind of measures that will reduce our reliance on foreign oil.

Getting to that goal won’t be easy, and that is exactly why we have to start now.

So today is about much more than just making America’s favorite vehicles more fuel efficient. It is about taking the necessary steps to ensure America’s prosperity, security, and strength well into the future.

Thank you.

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