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Executive Summary
The United States is too dependent on oil. This dependence threatens our national security and environment,
and Oregon consumers are now paying the price at the gasoline pump, with the state’s first full month at gas
prices over $3 per gallon.
The United States consumes more oil than any other country, and our cars, SUVs and light trucks account for
40% of this consumption. In Oregon, gasoline represents 53% of the state’s petroleum consumption.
Unfortunately, our oil consumption continues to increase. The average gas mileage of new vehicles actually
declined by 6% between 1987 and 2004 as automakers produced more gas-guzzling SUVs and light trucks.
Americans also are driving more than ever before: in Oregon, vehicle-miles traveled increased 66% between
1983 and 2003.
The effects of our country’s oil dependence are devastating: rising prices transfer hundreds of millions of dollars
taken from Oregonians and the Oregon economy to oil companies with record-breaking profits. And at the same
time, we continue to increase the amount of global warming pollution spewing into our atmosphere, warming our
climate, and threatening precious natural resources.
The best way to cut America’s oil dependence and shield consumers from price spikes at the pump is to make
cars and light trucks go farther on a gallon of gasoline. Fortunately, we have the technology to increase the
efficiency of our cars and light trucks to 40 miles per gallon (mpg) over the next decade while improving safety
and maintaining performance.
Every year that goes by without a meaningful increase in gas mileage means more oil dependence, more pain
at the gas pump and more global warming. If the Bush administration had announced, as part of the unveiling of
its energy policy in May 2001, an increase in fuel economy to 40 mpg by 2012:
• Oregon would now be consuming 5,600 fewer barrels of oil per day, Oregonians would save
$98 million in 2006 alone, and the state would have avoided 384,000 tons of global warming
pollution, the equivalent of taking 102,000 cars off the roads altogether.
• The U.S. would be consuming 500,000 fewer barrels of oil per day, Americans would save $8.7
billion in 2006, and the country would avoid 34 million tons of global warming pollution, the
equivalent of taking almost six million vehicles off the roads.
Only the federal government has the authority to regulate gas mileage; state leaders have few tools to
overcome federal inaction. However, with the evidence of global warming mounting, Oregon and other states
acted to limit global warming pollution from cars and trucks using their Clean Air Act authority to establish state
Clean Cars programs. Automakers are expected to comply with these pollution limits, at least in part, by
increase gas mileage. If gas stays above $3 per gallon, Oregonians can expect to save a net $39 million per
year when the program is fully implemented, and $72 million after car loans are paid off.
But directly regulating gas mileage offers much more aggressive progress. In the wake of rising gasoline prices,
President Bush requested authority to raise gas mileage standards. In response, Rep. Joe Barton (TX) has
introduced legislation to grant the National Highway Traffic Safety Administration (NHTSA) authority to change
gas mileage standards for passenger cars based on the size and weight of the vehicle. Unfortunately, the bill
removes the existing 27.5 mpg standard for passenger cars and provides no guarantee that manufacturers will
increase the fuel economy of their cars; in fact, they could make their cars bigger and heavier rather than make
them go farther on a gallon of gasoline.
Reps. Ed Markey (MA) and Sherwood Boehlert (NY) plan to introduce an amendment to Rep. Barton’s
legislation to fix this problem. Their amendment would afford manufacturers the flexibility of meeting differing
fuel economy standards based on the size and weight of the vehicle but would require that manufacturers
achieve a fleetwide average of at least 33 mpg by 2016. This would guarantee significant oil and consumer
savings.
The Union of Concerned Scientists (UCS) has analyzed the consumer and environmental benefits of the
Markey-Boehlert amendment. UCS found:
• Increasing the fuel economy of cars and SUVs to 33 mpg by 2016 would reduce America’s oil
demand by 500,000 barrels of oil per day in 2015 and 2.1 million barrels of oil per day in 2025.
• American consumers would save at least $19 billion at the pump in 2015 and $79 billion in
2025. By 2016, Oregonians would see annual net savings of $223 million (after accounting for
any increase in the cost of a car).
• America would cut its global warming pollution by 84 million metric tons in 2015 and 344
million metric tons in 2025.
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