Congress paves the way for 35-mpg cars

The push to make America's cars more fuel efficient got a big boost on Friday when congressional leaders in the House of Representatives agreed on a proposal to raise fuel economy standards in the United States to 35 mpg by 2020. The bill is expected to be voted on next week in the House and the U.S. Senate.

Currently the standards require passenger cars other than SUVs, minivans, and pickups to average 27 mpg across an automaker's fleet, while those light-trucks must average 22.2 mpg across all examples sold. As encouragement to conform, manufacturers whose vehicles exceed the standard must pay $5.50 per vehicle they produce for every tenth of a mile per gallon they exceed the average limit.

The new proposal would continue to allow SUVs, minivans, and pickups to get lower gas mileage than passenger cars, and it would apply money from fines to help develop technology for more fuel-efficient cars and trucks. It would also continue to promote the use of E85 ethanol by giving automakers credit toward fuel economy goals for building vehicles capable of running on E85.

"For the first time in decades, Congress is taking long overdue action to increase the fuel efficiency of American cars and SUVs," says Representative Edward Markey, chairman of the Select Committee on Energy Independence and Global Warming.

Even if they do, that may not be the end of increasing fuel economy standards. Congressional leaders opted not to restrict the Environmental Protection Agency or state governments from passing new carbon-dioxide emissions restrictions as part of the package. Such freedom allows California and others to push for higher automobile emissions standards, which could effectively require cars to get even greater fuel economy than 35 mpg.

This bill promises to save consumers real money at the pump in the years ahead. Should the bill be passed, as expected, we will post a follow-up report.

—Eric Evarts