Continuing to Operate a Fuel Inefficient Car Despite Warnings

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September 13, 1977

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WASHINGTON, Sept. 12—The Senate today rallied behind a proposal to outlaw the production of fuel‐inefficient automobiles aster 1979. rejecting an effort to strike the ban from an energy conservation bill.

16‐Mile‐a‐Gallon Standard for New Cars After 1979 Approved

On a 55‐to‐27 vote, the Senate affirmed the recommendation of its energy committee to require all 1980‐model year cars to achieve at least 16 miles per gallon, a minimum that would rise to 21 miles per gallon by 1985.

Meanwhile, in a separate action the energy committee itself narrowly rejected a plan for the gradual deregulation of natural gas prices.

The 9‐to‐9 tie vote by the committee left intact President Carter's proposal for raising the ceiling on interstate gas from $1.45 per thousand cubic feet to $1.75.

Republicans and oil‐state Senators, however, planned to make at least one attempt tomorrow to gradually raise the Carter price ceiling to $2.41 by 1981 and to a higher level after that.

The proposal to ban inefficient cars is substantially different than the approach taken by President Carter's energy program, which calls for taxes on such automobiles.

Some Senate leaders, including Senator Henry M. Jackson, Democrat of Washington, billed the proposal as a possible alternative to that tax, which is currently being considered by the Senate Finance Committee.

But Senator Donald W. Riegle, Demo crat of Michigan, the major opponent of the gas‐mileage minimum, complained that "I'm afraid we're going to get both" the tax and the minimum standards.

The House has already passed a watered‐down version of the tax.

The Senate rejected 52‐to‐28 a second proposal by Senator Riegle that would have invalidated the minimum mileage standards if Congress goes on to enact the fuel tax.

Existing law already requires the auto 'industry produce cars with a fleet average of 27.5 miles per gallon by 1985. But this law does not prohibit inefficient cars as such, so long as enough fuel‐efficient cars are produced In each model year to offset the less‐efficient cars and still meet the fleet requirements.

The Senate proposal would retain this 27.5 mile‐per‐gallon fleet, standard, while also establishing the new minimum mileage requirements.

Auto makers could face fines up to $10,000 for manufacturing cars that exceeded the specified minimum standards.

Senator Jackson told colleagues it was time to send "a signal to the auto industry" that the day of the gas gluttons are numbered.

The Senate also voted down, 56 to 25, a proposal to take away free parking plates held by some Federal Government workers throughout the nation.

Senator Charles' H. Percy, Republican of Illinois, sponsored the proposal that would have required that Federal work

ers‐‐including members of Congress—who now enjoy fre parking pay the same rates charged by commercial parking lots

He said the fees would have encouraged more use of mass transit by Federal employees.

. Meanwhile, the House passed and sent to the Senate two bills dealing with energy issues: nuclear power plant safety and oil spills.

By a vote of 396 to 2, the House authorized $302 million in appropriations for Nuclear Regulatory Commission programs, mandating stepped up efforts in the training of Federal nuclear power plant inspectors. Also, the House ordered additional research on improved nuclear power plant safety systems.

In another bill passed 332 to 59, the House approved creation of a $200 mil'lion fund to make up for oil spill damages and beach cleanups not paid for by the polluter. This covers a variety of sources, including river barges, ocean tankers, refineries, and offshore oil platforms.

The fund would be financed by a levy of 3 cents per barrel of oil on refineries and oil terminals.

The conservation portion of the Carter energy package before the Senate would 'set new energy efficiency standards for !buildings, home' appliances and industrial equipment and make low interest loans (available for home insulation.

In the Energy Committee vote, two Democrats, Wendell H. Ford, of Kentucky and J. Bennett Johnston of Louisiana, joined with seven Republicans in the losing effort to send a natural gas deregulation proposal to the Senate floor.

Last year, the full Senate approved deregulation, but the idea was rejected by the House.

The deregulation proposal sponsored by Senator Clifford P. Hansen, Republican of Wyoming, would have continued regulaticin of natural gas produced by offshore Neils until 1982, but the ceiling price would have jumped to $1.95.

New natural gas produced in states like Louisiana, Texas and Oklahoma and sold across state lines would have been immediately deregulated, Gas produced before the start of this year would have remained under Federal price controls.

Earlier, a proposal by Senator Dewey IF. tlett, Republican of Oklahoma, for the deregulation of almost all natural gas sold in interstate markets was defeated 12 to 6.

The committee is scheduled to vote today on a proposal by Senator Johnston land Senator Pete V. Domenici, Republican lof New Mexico, which would allow natural gas prices to rise from Mr. Carter's !ceiling of $1.75 to $2.41 by 1981. Beyond that, the price would be permitted to continue rising every six months with a float!ing ceiling controlled by the equivalent average of crude oil sold in the United States.

Senator Domenic' said the plan is a form of deregulation, although it includes a price ceiling. Sources said Mr. Domenici tend Mr. Johnston hope it will pick up gone Democratic on the committee, while retaining the support of conservative Republicans who might otherwise reject any compromise with any form of price Ceiling.

' Mr. Carter"s supporters have argued that the $1.75 gas price ceiling is enough (to encourage discoveries of new natural gas reserves while keeping home heating !price increases within reasonable bounds.

Supporters of deregulation say if the natural gas shortages that shut schools and crippled some industries last winter are not to be repeated, producers must be permitted enough incentive to spend the immense amounts of money needed to locate new reserves.

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Source: https://www.nytimes.com/1977/09/13/archives/new-jersey-pages-fuelefficient-cars-get-senate-backing.html

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