Q'S AND A'S ON CAFE

1. How does this agreement affect CAFE?

The Administration remains committed to pursuing increases in the fuel economy of the conventional vehicle fleet during the period in which we're working with the industry to design and bring to market the super-efficient car of the future. That commitment is unaffected by this agreement. Indeed, this agreement is a first step in that area, although certainly not the only step. One of the explicit goals of this agreement is the pursuit of technologies, such as aerodynamics and lightweight materials, that will improve the efficiency of conventional vehicles. The industry has agreed to apply these technologies, as available, to improved efficiency in the marketplace. Of course, if our long-term goal is reached, CAFE standards as we now think of them will be irrelevant, since we will have vehicles that are 300% more efficient than current vehicles.

2. What are the Administration's specific plans on CAFE? How do you intend to fulfill your commitment to near-term efficiency improvements?

Before we take any action, we want to make certain that we do it in the most efficient and cost-effective way. Any regulatory action that we take immediately would be strictly limited by the structure of the current CAFE program, and while that may be the best way to do it, we want to first consider all possibilities. We have begun our work on near-term improvements today, by joining with the industry to bring to market technologies that can achieve these improvements. We will begin further action in this area as soon as we have completed review of the options.

3. What about the campaign promise of 40 mpg by 2000 and 45 mpg by 2015 (in "Putting People First")? Is that still the Administration's goal?

Everyone agrees that lead time is critical in our ability to achieve fuel efficiency improvements, and that the greatest potential for efficiency improvements is in the post-2000 period. If we meet our long-term research challenge, a car fleet efficiency of 45 mpg could look insignificant by 2015. We are reviewing what can be accomplished in the pre-2000 period, and we hope, given our more open and cooperative relationship with the industry that is evidenced by our agreement here today, we will do that with the candid assistance of the industry and other interested parties. [If 40 mpg looks reasonable given the time remaining, we will pursue it. If not, we will pursue the most reasonable goal, in the most effective and cost-efficient way.]

4. What about the climate change action plan? Will it address these issues, and how will it do so?

The climate change action plan has not been finalized, but we expect to be able to finalize it [within a matter of weeks]. Until it is final, I can't give you any definite information about its contents. I can say that the group working on the plan obviously recognizes the significance of the transportation sector in carbon dioxide production, particularly in the post-2000 period.

Note to those reviewing this draft: OEP and OVP-Domestic Policy believe that more detailed discussion of the draft action plan will shift the focus from the clean car agreement to a detailed debate over what needs to be studied, what specific increases should be sought, etc. For that reason, it's our recommendation that we not discuss the specifics of the action plan in the context of the clean car announcement.