Progress Report: Administration Fuels High Prices

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Thu, 25 Aug 2005 07:46:15 -0700

Progress Report: Administration Fuels High Prices

" American Progress Action Fund "

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AMERICAN PROGRESS ACTION FUND

The Progress Report

by Christy Harvey and Judd Legum with Nico Pitney and Mipe Okunseinde

www.progressreport.org

8/25/2005

 

For news and updates throughout the day, check out our new blog at

ThinkProgress.org.

 

ENERGY

Administration Fuels High Prices

 

Yesterday, with gas over $3 a gallon in many areas of the country, the

Bush administration unveiled new fuel efficiency standards. The

administration proposal squanders an opportunity to reduce demand for

fuel - and actually encourages automakers to produce bigger, more fuel

inefficient vehicles. Worse, the rules secretly undermine state

efforts to do better. California recently approved a plan that " will

require a 30 percent cut in carbon dioxide emissions from cars and

light trucks by 2016, a target that will most likely be met by big

increases in fuel efficiency. " The approach is gaining popularity and

" George Pataki of New York and other Eastern governors have pledged to

emulate it. " But buried on page 150 of the regulations is this

provision: " [A] state may not impose a legal requirement relating to

fuel economy, whether by statute, regulation or otherwise, that

conflicts with this rule. A state law that seeks to reduce motor

vehicle carbon dioxide emissions is both expressly and impliedly

preempted. " In other words, the Bush administration has indicated it

is determined to undercut California and all other states seeking to

improve the administration's feeble proposal. If the administration is

successful we will all pay the price.

 

ADMINISTRATION THWARTS BILLIONS IN FUEL SAVINGS: The California plan

" would save far more at the pump for the state's residents than the

White House plan. " The plan would deliver Californians " annual net gas

savings of more than $1 billion by early next decade. " (States like

New York, that were expected to adopt similar proposals could have

expected similar savings.) In all likelihood, that projection

significantly understates the actual savings. It's based on " low

projections for gas prices " -- around $1.50 a gallon -- that " woefully

understate the potential benefits of fuel efficiency. "

 

NEW FUEL EFFICIENCY STANDARDS ENCOURAGE PRODUCTION OF INEFFICIENT

VEHICLES: For the past 30 years " fuel economy regulations have divided

each automaker's annual production into two categories, cars and light

duty trucks. " The new Bush administration regulations " would divide

the current light truck fleet [including SUVs] into six classes, with

each class being determined by wheelbase (length) and track width

(width). " (The largest vehicles -- like the Hummer H2, Ford Excursion,

and some models of the Chevy Suburban -- remain completely exempt.)

That system " encourages automakers to build larger vehicles in order

to qualify for weaker fuel economy standards, resulting in lower fleet

wide fuel economy. " Thus, even the extraordinarily modest fuel savings

that the administration predicts -- 10 billion gallons of gas savings

over nearly two decades (less than a month's supply) -- is purely

speculative. For example " Ford could add less than an inch to the

dimensions of its Explorer Sport Trac and move it from a class with a

fuel target of 24.5 m.p.g. to one with 23.3 in 2011 models. "

Automakers have shown a willingness to game the system in the past:

" When the current regulatory system was created three decades ago, 80

percent of the vehicles automakers produced were cars. Today, more

than half are light trucks, partly a result of the category's lesser

fuel requirements. "

 

EXISTING TECHNOLOGY COULD CREATE REAL SAVINGS: The administration

proposal " would raise the fuel economy standards for light trucks - a

vehicle category which includes pickup trucks and SUVs - by a trivial

1.8 miles per gallon over the 2008 to 2011 vehicle model years. " We

can do much, much better. According to the Sierra Club " technology

exists today to make all vehicles average 40 miles per gallon fleet

wide within ten years. Taking this step would save the average driver

$2,200 in fuel savings over the lifetime of their vehicle. "

Alternatively, a simple, attainable proposal to close the gap in fuel

standards between cars and light trucks would " cut fuel costs for

truck buyers by at least 25 percent, equivalent to reducing gasoline

prices to below $2.00 per gallon from today's record high of more than

$2.60. "

 

INTERNATIONAL AFFAIRS

Bolton Already Obstructing Reform

 

It hasn't taken John Bolton long to undermine U.N. reform efforts.

Weeks before world leaders from 170 countries are to gather in New

York to discuss " the most sweeping changes at the United Nations in

its 60-year history, " the U.S. delegation led by Bolton has " thrown

the proceedings in turmoil " with demands for a " drastic renegotiation "

of the draft reform plan. Never mind that the current document is the

result of " nearly a year of intensive negotiations " in which the

United States " has been a regular participant " and so " has had a major

impact on the document to date. " Bolton has decided to introduce at

the last minute more than 750 amendments that would " eliminate new

pledges of foreign aid to impoverished nations [and] scrap provisions

that call for action to halt climate change and urge nuclear powers to

make greater progress in dismantling their nuclear arms. " Bolton was

sent to the UN not to reform it, but to weaken it, and he's already

hard at work.

 

SENDING REFORM BACK TO STEP ONE: Bolton has also suggested that one

option " would be to return to square one and launch line-by-line

negotiations on the document. " With diplomats warning that the " most

determining factor is shortage of time " between now and September's

summit, this strategy is a clear effort to throw a wrench in the gears

of U.N. reform. A top U.N. General Assembly today warns of just that:

" [T]he big risk now is that [other countries] will see this big

shopping list as an opportunity to return with their own shopping

lists and then the whole thing may unravel. " It seems that Bolton's

real motive is to turn the September world summit into a fiasco,

either by making sure that nothing is agreed to, or that the consensus

document is devoid of any significant reform.

 

THE WAR ON THE WAR ON POVERTY: As President Bush has pointed out,

" Persistent poverty and oppression can lead to hopelessness and

despair. And when governments fail to meet the most basic needs of

their people, these failed states can become havens for terror. " Yet

John Bolton wants to eliminate most of the portions of the draft

document that address alleviating global poverty. His amendments " call

for striking any mention of the Millennium Development Goals, and the

administration has publicly complained that the document's section on

poverty is too long. " Moreover, Bolton has told foreign delegates that

he is concerned " about a provision of the agreement that urges wealthy

countries, including the United States, to contribute 0.7 percent of

their gross national product in assistance to poor countries. "

 

FOR BOLTON, SIZE MATTERS: The Bush administration's true commitment to

U.N. reform can also be judged by the importance it has placed on the

draft document's length. The administration's official response to the

draft, released earlier this month, includes sentences such as " the

document is too long and not worded in a manner that heads of state

normally agree to or endorse, " " The development section is over 15

pages long, " and " the section on security...focuses far too much on

disarmament rather than nonproliferation; it is also too long. " In

recent days, John Bolton has suggested " that the entire document could

be scrapped and replaced with a brief statement, " or at most " a

punchier three-page version. " How in the world do you construct a more

dynamic and effective U.N. with a three page document? The fact is you

don't.

 

BOLTON OPPOSES TOUGH POSITION AGAINST GENOCIDE: Apparently the Bush

administration hasn't learned the lessons taught by the Rwandan

genocide of 1994 and the ongoing genocide in Darfur, during which the

international community failed to intervene effectively in cases of

mass human rights violations. The Washington Post reports that the

Bush administration " opposes language that urges the five permanent

members of the Security Council not to cast vetoes to halt genocide,

war crimes or ethnic cleansing. " (American Progress feels differently,

and has launched the Responsibility to Protect program to present our

case.)

 

UNDER THE RADAR

 

LEGION DECLARES WAR ON ANTIWAR: The American Legion, a veterans'

organization with 2.7 million members, has " declared war " on antiwar

protestors, Editor and Publisher reports. During remarks at the

group's national convention in Honolulu, the Legion's commander Thomas

Cadmus called for an end to all " public protests " and " media events "

against the war, even though they are protected by the Bill of Rights.

" The American Legion, " he said, " will stand against anyone and any

group that would demoralize our troops, or worse, endanger their lives

by encouraging terrorists to continue their cowardly attacks against

freedom-loving peoples. " The delegates at the convention then voted to

use whatever means necessary to " ensure the united backing of the

American people to support our troops and the global war on terrorism. "

 

ENERGY -- HIGHER COST OF GAS MEANS TAXPAYERS PAYING MORE TO TRANSPORT

BUSH: Rising gas prices means that it costs more to transport

President Bush and his staff. Unlike most Americans, Bush doesn't have

to foot the bill. " Almost every vehicle Bush uses is custom-made to

add security and communications capabilities, and the heavier weight

of these guzzlers further drives up gas and jet fuel costs. " The

White House refused a request for comment on the overall effect of

higher fuel prices on its budget. While Bush may not have much say

over the types of transportation his entourage uses, Bush drives a

Ford F250 pickup truck on his ranch in Crawford that requires

approximately $75 to fill the tank. The AP writes, " Reducing his

appearances outside the White House and making other gestures toward

fuel conservation could help cut down on costs. "

 

NATIONAL SECURITY -- CIA LEAK INVESTIGATION PROVIDES VALUABLE GLIMPSE

INTO SMEAR TACTICS OF WHITE HOUSE: The Los Angeles Times reports that

the information which has become public to date through the

investigation of the Valerie Plame outing reveals a White House that

is adept at smearing its critics. " Beyond the whodunit, the affair

raises questions about the credibility of the Bush White House, the

tactics it employs against political opponents and the justification

it used for going to war. " Meanwhile, Rove's attorney, Robert Luskin

continues to reinvent facts in an effort to defend his client. " The

one thing that's absolutely clear is that Karl was not the source for

the leak and there's no basis for any additional speculation, " Luskin

said. Recall this is the same Luskin who said Rove " did not disclose

any confidential information about anybody to [Time reporter Matt]

Cooper " and that Rove had testified " absolutely truthfully " about all

his conversations with reporters about Plame.

 

BAD NEWS FOR THE HOUSING BOOM: The New York Times reported this

morning that rents are again rising across the country—an indication

that the housing boom could be reaching its peak. According to Global

Real Analytics, a research company in San Francisco, rents in about

85% of large metropolitan areas climbed last year. With mortgage rates

growing, the rise in rent is a sign that people are increasingly

looking to lease apartments and houses rather than buy. Indeed, a

government report issued yesterday seems to second that idea: while

the price of a newly built home rose over winter and spring, it fell

by more than 15,000 dollars from June to July.

 

IRAQ -- MORE MIXED MESSAGES ON TROOP WITHDRAWALS: The Financial Times

reports that General Douglas Lute, director of operations at CENTCOM,

said yesterday that the U.S. could be expected to pull a significant

number of troops out of Iraq in the next 12 months. Citing General

John Abizaid, commander of all U.S. troops in the region, Lute

maintained that the reductions would be part of a general effort shift

the burden to Iraqi forces. Said Lute: " We believe at some point, in

order to break this dependence on the…coalition, you simply have to

back off and let the Iraqis step forward. " But two weeks ago,

President Bush said that no decision has yet been made on troop

withdrawals. And just yesterday, Bush said that an immediate

withdrawal would " only embolden the terrorists and create a staging

ground to launch more attacks against America and free nations. " " So

long as I'm the President, " Bush continued, " we will stay, we will

fight, and we will win the war on terror. "

GOOD NEWS

 

" Officials in nine Northeastern states have reached a preliminary

agreement to cap and then cut greenhouse gas emissions from power

plants by 10% by 2020. "

 

DON'T MISS

 

EDUCATION: Arizona Gov. Janet Napolitano writes about how to revamp

U.S. public education

 

ECONOMY: American Progress Fellow Gene Sperling writes about the path

the Fed should take on interest rates

 

MILITARY: Margaret Carlson writes that Bush is now having to confront

the " parent problem, " referring to increasing numbers of parents who

are presenting a roadblock to the military's recruiting efforts

 

DAILY GRILL

 

" A time of war is a time of sacrifice. "

-- President Bush, 8/24/05

 

VERSUS

 

Question: [Are you going to do] any fishing?

Bush: I don't know yet. I haven't made up my mind yet. I'm kind of

hanging loose, as they say.

-- Remarks to Press Pool, 8/23/05

 

DAILY OUTRAGE

 

Televangelist Pat Robertson claims he was " misinterpreted " in his

comments calling for the assassination of Venezuelan President Hugo

Chavez. Despite claiming he never used the word " assassinate, " Media

Matters has the video demonstrating the opposite.