Hill Heat

From CQ:

After negotiations with key Republicans, Senate Majority Leader Harry Reid said Friday he was prepared to seek a conference with the House on energy policy legislation.

“The Speaker wants to go to conference. I want to go to conference,” Reid, D-Nev., said on the floor Friday. “We know we can’t do a bill unless we include the Republicans in it.”

The unanimous consent to move to conference was blocked on a procedural basis by John Cornyn, R-Texas, Friday afternoon because many senators were traveling, but no objections were expected this week.

That said, the battle over CAFE standards remains strong, with the auto industry lobbying hard for the weaker Hill-Terry language (HR 2927). Last week GM Chairman and CEO Rick Wagoner met with Al Hubbard, director of the National Economic Council, Nicole Nason, the administrator of the National Highway Traffic Safety Administration, and EPA officials, and Ford CEO Alan Mulally is expected in DC this week.

Meanwhile, the natural gas industry is calling for expanded drilling:

The American Petroleum Institute, Independent Petroleum Association of America, and seven other trade associations representing natural gas producers, pipelines, and consumers jointly expressed strong concern Oct. 19 about US House energy legislation that they believe would reduce instead of increase domestic gas supplies. . . . The 2005 Energy Policy Act contains several provisions to encourage production in frontier areas, including ultradeep water, ultradeep gas, and offshore Alaska, which HR 3221 seeks to repeal, they said.

From CQ Greensheets and Detroit News reports on movement on the inter-chamber energy bill negotiating process:

• The controversial standard legislation – fuel economy (CAFE) and renewable fuels (RFS) from the Senate bill (HR 6), and renewable energy (RPS) from the House bill (HR 3221) – “will be worked out behind closed doors between House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid”, with staff-level discussions this week
• Opponents of the CAFE legislation in the Senate bill continue a last-ditch effort to advocate Hill-Terry (HR 2927) and get Senators to switch their votes. The coalition, led by Energy and Commerce chair John Dingell, includes:
  • Alliance of Automobile Manufacturers
  • Blue Dog Coalition
  • American Farm Bureau Federation
  • American Recreation Coalition
  • Associated General Contractors
  • International Professional Rodeo Association
  • Plumbing, Heating and Cooling Contractors Association
  • Small Business and Entrepreneurship Council
• Dingell’s staff is meeting with the leadership staff for the closed-door negotiations, but he is leaving the door open to blocking the energy bill: “I’m not foreclosing any option. I don’t make the jungle. I just live there.” He also said that trying to get a bill completed before the scheduled October 26 recess “is to invite a disaster.”

Toyota is now responding to NRDC’s challenge to drop its opposition to the Markey-Platts CAFE standard increase (since echoed by UCS and Ed Markey, and written up by Tom Friedman):

There are various bills before Congress that would mandate a new target of 35 mpg by 2020 and require both cars and trucks to meet that standard. Our engineers tell us the requirements specified by these proposed measures are beyond what is possible. Toyota spends $23 million every day on research and development but, at this point, the technology to meet such stringent standards by 2020 does not exist.

Toyota has long supported an increase in the Corporate Average Fuel Economy (CAFE) standards. Moreover, Toyota has always exceeded federal fuel economy requirements. We are continuously striving to improve our fuel economy, regardless of federal mandates.

Toyota currently supports a proposal known as the Hill-Terry bill, HR 2927, that would set a new standard of up to 35 mpg by 2022 (up to a 40% increase) and maintain separate categories for cars and light trucks. Although this won’t be easy, we believe it is achievable.

House Energy Independence and Global Warming Committee chairman Ed Markey responds: “Apparently the only thing that separates Toyota from the ‘impossible dream’ of 35 miles per gallon here in the U.S., is a flight across the Pacific Ocean,” as Toyota meets Japan’s (and Europe’s) fuel efficiency standards of greater than 40 MPG, according to the International Council on Clean Transportation.

Forwarded to Hill Heat (as always, I’m reachable at [email protected]):

A Message from Irv Miller

Dear Associate:

Toyota is currently the target of a campaign by the National Resources Defense Council (NRDC) that accuses us of opposing increases in the Corporate Average Fuel Economy (CAFE) standards for cars and light trucks. The assertion by this group that we are actively lobbying against increased fuel economy standards is just flat wrong, and we want you to be aware of the company’s position on this important issue and the facts.

FACT: Toyota has long supported an increase in the CAFE standards. Moreover, Toyota has always exceeded federal fuel economy requirements. We’ve never waited for federal mandates. Under the current CAFE standard, an automaker’s average miles per gallon for cars must exceed 27.5 and light trucks must exceed 20.7. Trucks weighing less than 8500 lbs. must average 22.5 mpg for model year 2008, 23.1 mpg in 2009 and 23.5 mpg in 2010.

FACT: There are various bills before Congress that would mandate a new target of 35 mpg by 2020 and require both cars and trucks to meet that standard. Our engineers tell us the requirements specified by these proposed measures are beyond what is possible. Toyota spends $23 million every day on R&D but, at this point, the technology to meet such stringent standards by 2020 does not exist.

FACT: Toyota supports a proposal known as the Hill-Terry bill, HR 2927, that would set a new standard of from 32 to 35 mpg by 2022 (up to a 40% increase) and maintain separate categories for cars and light trucks. That won’t be easy, but we believe it is achievable.

To help set the record straight, I have posted a message on this topic on the company’s blog. To learn more, visit the blog by clicking here—> http://blog.toyota.com/2007/09/irvs-sheet-a-ca.html

Toyota, maker of the 46 MPG Prius*, is lobbying against the Markey-Platts fuel-economy bill (HR 1506), which calls for 35 MPG by 2020, and for the significantly more industry-friendly Hill-Terry (HR 2927) as part of the Alliance of Automobile Manufacturers. (An AAM rep has even commented on this site).

NRDC is challenging Toyota on its blog and with its How Green is Toyota? campaign, which asks people to email the Toyota North America president and stop opposing Markey-Platts.

Irv Miller, Toyota North America’s VP of corporate communications, promoted Hill-Terry on the Toyota blog in July and fired back at NRDC in September.

Today, from Thomas Friedman in the New York Times:

Representative Edward Markey, the Massachusetts Democrat who heads the House Select Committee on Energy Independence and Global Warming, said to me that Toyota could meet a 35 m.p.g. standard in Japan and Europe today, “but here — even though they bombard Americans with ads about how energy efficient Toyota is — they are fighting the 35 m.p.g. standard for 2020.”

Mr. Markey said he has tried to persuade Toyota that “a lot of people have bought Priuses or Camry hybrids to fight global warming and reduce our dependence on foreign oil” and “they would be shocked to find out” that Toyota is lobbying against the highest m.p.g. standards for America.

With a vote on CAFE legislation in the House expected to come next week, the Pew Campaign for Fuel Efficiency today released new bipartisan polling in Ohio, Tennessee, Kentucky, Pennsylvania, North Carolina, Florida and Michigan that pulled from more than 30 congressional districts. The surveys found overwhelming voter support for the U.S. House of Representatives to pass CAFE legislation at least as strong as those passed by the U.S. Senate in June. One particular district surveyed was John Dingell’s, Michigan-15.

The polls compared the elements of the Markey-Platts bill (HR 1506) with those of the industry-supported Hill-Terry bill (HR 2927), and found overwhelming, across-the-board support for Markey-Platts across all demographic groups (partisanship, income, type of car, age, etc.). Voters just don’t buy the industry arguments against CAFE standards, believing that cars will continue to be safe and affordable and that the American auto industry and auto workers will be better off as they will be forced to innovate.

As Bill McInturff, the GOP pollster said in the briefing, “There’s really strong Republican support for higher standards, do it quicker, make it binding.” Voters see this as an economic, environmental, national security issue, and would feel better about Congress and their own representative if strong legislation is passed.

Voters in Dingell’s district look like the voters elsewhere.

The pollsters deliberately avoided global warming because they see it as a partisan issue.