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The House and Senate have rejected environmental activists' efforts to allow the Administration to raise Corporate Average Fuel Economy (CAFE) standards before leaving office next January.

Senators 6/15 approved a Gorton (R-WA) proposal that instructs Senate conferees to the DOT spending bill to accept House-passed language freezing CAFE standards at current levels for another year.

The non-binding "motion to instruct," approved by voice vote, was the result of intense negotiations between pro-CAFE Sen. Slade Gorton and pro-freeze Sens. Ashcroft (R-MO), Abraham (R-MI) and Levin (D-MI).

The Gorton motion calls for:

• Senate acceptance of the House CAFE freeze language for another year;
• A National Academy of Sciences/DOT study that must consider a CAFE increase's impact on motorists' safety; the disparate effect on U.S. automakers; the effect on millions of American workers in the U.S. auto and auto-parts sectors; and other issues determined by conferees.
• The study may recommend changes to current CAFE levels, but changes cannot take effect until approved by both houses of Congress.
• The study must be completed by 7/01.

NAM/Industry Lobbying. As in the House, manufacturer/industry lobbying-including notification that pro-CAFE measures could be considered Key Manufacturing Votes-played a key role. Ultimately, neither the House nor Senate held a recorded vote on the CAFE freeze in 2000.

In a 6/9 "Key Vote" letter to senators, NAM Senior Vice President Michael Baroody observed that "CAFE has been unsuccessful in its primary objectives-reducing oil imports and gasoline consumption-but has adversely affected U.S. jobs and highway safety. More than ever, just-in-time deliveries between business and delivery systems in support of e-commerce require more vehicle choice, not less."

Environmental activists, buoyed by rising oil prices, had pushed pro-CAFE amendments in both chambers for several months. In 1994, DOT advocated a significant CAFE increase that could have decimated the popular minivan/SUV/pickup industry. Congress wisely blocked that effort. Lawmakers have passed-and the President has signed-appropriations language freezing CAFE standards every year since.

The NAM will closely monitor House-Senate conference action on CAFE issues. NAM contact: Mark Whitenton, (202) 637-3157.