Congress should act on fuel economy: Senator

WASHINGTON (Reuters) - Attempts by U.S. states to reduce greenhouse gases on their own by limiting tailpipe and other emissions should not preclude congressional action on higher fuel economy, a key U.S. senator said on Tuesday.

Jeff Bingaman, a New Mexico Democrat and chairman of the Senate Energy Committee, also told the Reuters Environment Summit the failure of Congress to require tough fuel standards has not helped American manufacturers General Motors Corp GM.N, Chrysler LLC, and Ford Motor Co (F.N).

"I think the truth is had we required more fuel efficiency, they probably would be selling more cars," Bingaman said. "That may well be the case five years from now, or 10 years from now."

Propelled by the Iraq war, other instability in the Middle East, and soaring gasoline prices, Senate lawmakers approved a new fuel economy mandate in June to cut oil imports and improve U.S. energy security. The measure would boost fleetwide fuel economy by 40 percent to a combined average for cars and trucks of 35 miles per gallon by 2020.

Passenger cars and light trucks account for about 40 percent of all U.S. oil consumption and 20 percent of all U.S. carbon emissions, according to Environmental Protection Agency data.

The House of Representatives did not include fuel economy in its energy package, and the final step of negotiating a compromise bill is expected to be contentious. It has yet to advance beyond preliminary stages. Other priorities clogging the congressional calendar this fall have also slowed momentum on the energy bill.

Bingaman promised to do what he could to craft a compromise but also addressed efforts by California and more than a dozen other states to restrict carbon emissions on their own as a way to slow global warming and improve fuel efficiency.

In the past, state regulations on air bags and seat belts eventually prompted federal standards. On global warming, state officials are frustrated with a lack of significant congressional and regulatory action as well as successful auto industry efforts to blunt change.

But Bingaman said state action, even if it survived political and legal challenges, was not likely to preclude action on Capitol Hill, now or down the road.

"Regardless of how successful some of these states are at their efforts to control tailpipe emissions, I think there will still be a push and a need to try to do something nationally," Bingaman said.

Florida Gov. Charlie Crist, whose state may join the California initiative, did not dismiss the prospect of congressional intervention. "It depends on what it is and what they come up with," Crist said. "But to have that kind of conversation to occur, I take it as a positive," Crist, a Republican, said.

Average fuel economy for passenger cars, sport utility vehicles, pickups and vans on U.S. roads for 2007 is estimated at 20.2 miles per gallon, unchanged from last year, the EPA said.

Bingaman said it was less likely that climate change legislation would replace the energy bill as a vehicle for boosting auto fuel efficiency, mainly because he believes the Bush administration would not support mandates to curb greenhouse gases.

Rep. John Dingell, a Michigan Democrat, auto industry ally, and chairman of the House Energy and Commerce Committee, is moving ahead anyway with sweeping climate legislation that would cut emissions to improve fuel efficiency.

(Editing by Jeffrey Benkoe)