Democrats criticize future gas price estimates
WASHINGTON - With consumers paying $4-plus a gallon for gasoline, House Democrats said that the Bush administration's estimate for future gas prices needs an overhaul.
When the government issued its proposal to raise vehicle fuel economy standards to a fleetwide average of 31.6 miles per gallon by 2015, the plan assumed that gas prices would be $2.42 a gallon in 2016.
"When compared to today's prices at the pump, these numbers are nothing short of absurd," Rep. Edward Markey, D-Mass., who leads a House panel on energy independence and global warming, said Thursday.
Congress last year required the National Highway Traffic Safety Administration to set fuel economy standards at the "maximum feasible" level each year, reaching a minimum of 35 mpg by 2020, a 40 percent increase over current standards.
If NHTSA used a higher estimate for gas prices in its analysis, it could make a more cost-effective case for raising the requirements beyond 31.6 mpg by 2015.
Markey said a higher estimate put forth by the Energy Information Administration, which supplies the projections, included a range of $3.14 per gallon in 2016 to $3.74 a gallon in 2030. Using these estimates "found that technology is available to cost-effectively achieve a much higher fleetwide fuel economy of nearly 35 mpg in 2015."
Tyler Duvall, a Transportation Department assistant secretary, acknowledged that the prices seem "somewhat off" but said the agency uses the best available estimates in the face of unpredictable gasoline prices.
"There's little question given current fuel prices that we're in a very volatile environment right now," Duvall said. He noted the agency would consider the comments it receives on the plan.
Guy Caruso, who leads the EIA, told the panel earlier this month that NHTSA should use the high gas price scenario when setting fuel economy standards.
Rep. Candice Miller, a Republican from Macomb County's Harrison Township, noted that Detroit's automakers face costs of up to $85 billion over a decade to comply with the new rules.
"Many in this Congress seem to be focused on bankrupting this industry," said Miller, whose district is home to many auto workers.
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