The Consumer Federation of America (CFA) today applauded a breakthrough agreement reached by Congressional negotiators to increase vehicle fuel economy standards by 40 percent to 35 miles per gallon by 2020.  The House of Representatives is expected to pass energy legislation with this new requirement this week.  The Senate passed a similar mandate in June and is expected to act on final legislation by the end of the year.

“After two decades of inaction, this vehicle fuel economy agreement is the single most important step Congress can take to reduce our energy costs and dependence on Mideast oil,” said Mark Cooper, Director of Research for the Consumer Federation of America.  “With gasoline prices skyrocketing, Americans are desperate for action from Congress to help them save money at the pump.”

Congressional negotiators also appear to have agreed to a significant expansion of biofuel production.  Legislation passed by the Senate would increase the annual production of renewable fuels to 36 billion gallons in 2022.  A major outstanding issue is whether Congress will require utilities to use renewable energy as the source of 15 percent of their electricity, as passed by the House.

A CFA study released in October found that total national savings under the Senate fuel economy, Senate bio-fuels and House renewable energy requirements would be around $400 billion by 2020.

“We urge Congressional leaders to show the same creativity in resolving differences on a meaningful renewable electricity standard as they did in agreeing to increase vehicle fuel economy requirements,” said Travis Plunkett, Legislative Director for CFA.  “Americans need a comprehensive new energy policy now.”