Senate Approves Higher Mileage Requirements

On its face, raising the CAFE standards to 35 mpg sounds like a good idea. Better gas mileage means that a person could go further on a tank of gas, which would also mean less pollutants emitted per mile driven.

The vote, 65 to 27, was a major defeat for car manufacturers, which had fought for a much smaller increase in fuel economy standards and is expected to keep fighting as the House takes up the issue.

But Senate Democrats also fell short of their own goals. In a victory for the oil industry, Republican lawmakers successfully blocked a crucial component of the Democratic plan that would have raised taxes on oil companies by about $32 billion and used the money on tax breaks for wind power, solar power, ethanol and other renewable fuels.

Republicans also blocked a provision of the legislation that would have required electric utilities to greatly increase the share of power they get from renewable sources of energy.

As a result, Senate Democrats had to settle for a bill that calls for a vast expansion of renewable fuels over the next decade — to 36 billion gallons a year of alternatives to gasoline — but does little to actually promote those fuels through tax breaks or other subsidies.

One possible problem is that there appears to be a relationship between the institution of higher CAFE standards and the death rates of vehicle occupants. When the mileage requirements were made more stringent, there was an increase in the death rate, and it is a concern that the new requirements might cause a similar increase, especially as consumers continue to flock to SUVs. Don Surber has the details.

Another problem is that better gas mileage might actually encourage even more people to drive more, negating any benefits from increased efficiency. It is that conundrum that would lead one to suspect the only way to alter consumer behavior to get out of the habit of driving everywhere is to heavily tax gasoline. Well, I'm sure legislators are licking their chops at that prospect as well.

As for the issue with ethanol, consider that every gallon of ethanol produced means that there's corn not being used for food - increasing the cost of various food products significantly as demand continues to soar. This isn't good for consumers either.

UPDATE:
Instapundit opposes raising the CAFE standards, but notes various ways that the carmakers can get it done. Nearly all of the methods involve higher prices for the consumer. Figures.