New York's Senator
CHARLES E. SCHUMER

FOR IMMEDIATE RELEASE May 13, 2001


SCHUMER: GAS PRICE SPIKES ARE FORCING SUV, MINIVAN OWNERS TO SPEND $650 EXTRA EVERY YEAR BECAUSE OF LOW MILAGE STANDARDS

New Analysis Shows How Much More Owners of Top 10 Selling SUVs and Minivans Could Save

Schumer Calls on President to Support New Fuel Efficiency Bill

Armed with an analysis showing how the gas crisis is even worse for drivers of SUVs and minivans, US Senator Charles E. Schumer today unveiled unveil a plan to raise SUV and minivan fuel efficiency standards from 20.7 miles per gallon (mpg) to 27.5 mpg within six years. Schumer said that the higher standard would save SUV and minivan owners between $600 and $1,000 per year at the pump, and urged President Bush support the cost savings plan and include it in Vice President Cheney's upcoming energy report .

"All drivers suffer when gas prices shoot through the roof, but SUV drivers pay the biggest price at the pump," said Schumer. "SUVs and minivans look like cars, they're used as cars and they should have the same fuel efficiency standards as cars. Changing the standards would save drivers $650 at current gas prices and nearly $1,000 if prices climb to $2.50 per gallon. At a time when we need to reduce our reliance on foreign oil, conserve our own oil, and bring relief to consumers reeling from price spikes, passing this bill is more important than ever."

The federal fuel efficiency standards for SUVs and minivans are much lower than those for passenger cars because the standard for light duty trucks - which encompasses SUVs and minivans - was created when the vehicles were used primarily for agriculture and commerce. This standard makes little sense today since SUVs and minivans are predominantly used as passenger vehicles and is especially costly since the number of SUVs and minivans on the road has exploded in recent years.

Schumer today unveiled bipartisan legislation he has introduced with Senators Susan Collins (R-ME), Olympia Snowe (R-ME) and Dianne Feinstein (D-CA) that would raise the CAFÉ (Corporate Average Fuel Economy) standards for SUVs, minivans, and other light duty trucks to 27.5 mpg - the current level for passenger vehicles - over six years. The standard would be phased in, rising from today's 20.7 mpg to 22.5 mpg in 2002, 25.0 mpg in 2005 and 27.5 mpg in 2007.

While the number of SUVs on the road has exploded, their f uel economy is at an all time low, declining from a high of 20.9 mpg in 1989 to 19.6 mpg in 1999. Minivan fuel economy has improved slightly from 22.7 mpg to 25.0 mpg over the same period, but still lags below the 27.5 mpg fuel efficiency standard used for cars. As a result, as OPEC production cuts, inadequate refining capabilities and low crude oil prices push gas prices to record-highs, SUV and minivan owners are paying more for gas than ever.

Schumer said that the new standard would result in dramatic reductions in gasoline costs for SUV and minivan drivers at today's and tomorrow's high prices. In fact, according to a Schumer analysis of consumption and price data for the ten best-selling SUVs, at today's gas prices of $1.75 per gallon, SUV owners would save $646.57 annually on gas if their vehicles met the higher standard. At a future price of $2.00 per gallon, drivers would save $738.94, and if prices rise to $2.50, they would save a whopping $923.68. Owners of the most popular minivans would also see significant relief, saving $336.73 at $1.75 per gallon, $384.83 at $2.00 per gallon and $481.04 at $2.50 per gallon.

"Improving fuel efficiency standards for SUV and minivans will also bring down the price of gas for everyone," Schumer said. "Using less gas means more supply becomes available and prices drop for cars, SUVs and minivans. The way gas prices are headed, we could all use a little help."

Specifically, instead of paying $1,584.21 per year on 905.3 gallons of gas at an average price of $1.75, Ford Explorer owners would only pay $954.55 for 545.5 gallons of gas. Similarly, instead of shelling out $1,214.20 per year on 693.8 gallons of gas at today's prices, a Chevrolet Venture owner would only pay $954.55 for 545.5 gallons of gas. At a future price of $2.50, a Nissan Xterra owner would save $813.58 per year and consume 325.4 fewer gallons of gas per year.

In addition to saving SUV and minivan drivers money, Schumer stressed that raising the standard would dramatically reduce domestic oil consumption. Specifically, once fully phased in, the new standard would cut oil imports by 10%, reduce domestic consumption by one million barrels per day and prevent more than 200 million tons of carbon dioxide - the top greenhouse gas and biggest single cause of global warming - from entering the atmosphere.

Schumer called on President Bush to: