The Cost Of ‘Green’ For The Consumer

Yesterday CNS News reported that the Center for Automotive Research has released a study stating that the Obama Administration’s new fuel economy standards will result in a retail price increase for the average car of $11,000.

The article reports:

Zoe Lipman, the National Wildlife Federation’s Senior Manager for Transportation and Global Warming Solutions argued on a conference call held Thursday that the estimated fuel savings due to these standards will outweigh the “modest” motor vehicle price increases for consumers.

I pointed out in a story Tuesday that there are some valid questions as to whether or not these new fuel standards are being legally implemented. CAFE standards have been set by Congress–not by the executive branch. There are also some valid questions as to whether or not global warming is man-made. I support the idea of fuel efficient cars, but I also support the idea of America developing her natural resources and technology to make cleaner running cars.

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Freedom Is Part Of America

Yesterday The Hill reported on a statement made by President Obama at a town hall forum in Cannon Falls, Minnesota.

The article reports that the President stated:

“You can’t just make money on SUVs and trucks.  There is a place for SUVs and trucks, but as gas prices keep on going up, you have got to understand the market. People are going to try to save money.”

Not only is this an amazing statement in view of the freedom Americans have to drive what they want to drive, it is an amazing statement to be made by someone who is traveling the country in three totally fuel inefficient buses.

The article reports:

The White House unveiled first-ever fuel efficiency rules for heavy-duty trucks last week. The standards come after the administration ratcheted up fuel economy standards for cars and light-duty trucks.

The administration negotiated the standards in a series of high-stakes closed-door meetings with industry. In the end, the White House won the endorsement of major automakers and truck companies.

Fuel economy standards are not up to the White House–the are established by Congress. On August 11, Congressman Darrell Issa wrote a letter to Attorney Kathryn Ruemmier, Council to the President,  stating:

It has come to my attention that the new Corporate Average Fuel Economy (CAFE) and EPA vehicle greenhouse gas (GHG) standards announced by President Obama and select automobile manufacturers on July 29, 2011, were negotiated in secret, outside the scope of the law, and could generate significant negative impacts for consumers. Specifically, I am concerned about the lack of transparency in the process leading up to the agreement, the expected increase in cost per vehicle, and the negative impact these standards could have on the safety of automobiles. Moreover, I remain concerned that the government’s ownership interest in General Motors and Chrysler at the time these negotiations were conducted creates a troublesome conflict-of-interest.

This letter may be an example of why the liberal press is running attack pieces on Darrell Issa. (see Rightwinggranny)  Anyway, this needs to be looked into. This is another power grab by the Obama Administration and needs to be turned back. CAFE standards were first enacted by Congress in 1975 in response to the Arab oil embargo of 1973. The auto manufacturers have been able to circumvent the CAFE standards by declaring Sports Utility Vehicles (SUV’s) to be trucks. SUV’s have been selling well, regardless of their low gas mileage, because consumers like the feeling of safety with an SUV and because SUV’s can carry more passengers.

The obvious answer here is to develop America’s fuel resources while allowing the private sector to explore alternative energy. If there is a practical fuel alternative out there, private industry will find it (if they are allowed to make a profit on it). Profit motive works–it provides incentive for progress. The answer to the transportation energy problem (as in many other problems) lies in less government involvement–not more.

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