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Klobuchar Amendment Shifts Vehicles to Renewable Energy

Legislation would also mandate strong fuel economy standards, penalize oil companies for price gouging

May 9, 2007

(Washington, D.C.) U.S. Senator Amy Klobuchar (D-MN) supported a bill that would require all vehicles to have a 35 miles per gallon (mpg) fuel economy standard by 2020. The bill, the Ten-in-Ten Fuel Economy Act (S.357), passed out of the Senate Commerce Committee, of which she is a member, yesterday. She introduced an amendment that the Committee approved which would push for nearly all new vehicles to be flexible fuel ("flex fuel") compatible by 2015.

"This amendment is an investment in American homegrown renewable energy," remarked Klobuchar. "Outfitting American cars and trucks with the ability to run on alternative fuels, is a step toward outgrowing our dependency on foreign oil. Minnesota leads the way with E85 stations and I will continue to pursue initiatives that shift our nation closer to the future in renewable technology."

Klobuchar's amendment would adopt that 50 percent of all new vehicles be "flex fuel" capable starting in 2012 and builds on that baseline 10 percent each year, until reaching 80 percent in 2015. The amendment strengthens the overall bill which gives manufacturers time to meet the new fuel standard—a nationwide average fuel economy of 35 mpg by 2020.

The Klobuchar amendment would also help increase consumer awareness of flexible fuel vehicles by requiring automakers to display a permanent badge indicating a vehicle is capable of operating on alternative fuel, distribute literature in the owner's manual and label the fuel caps of flexible fuel vehicles. Klobuchar worked with Senators Maria Cantwell (D-WA), Byron Dorgan (D-ND), and John Kerry (D-MA) to get the amendment included in the bill.

Klobuchar also cosponsored an amendment introduced by Cantwell that takes a swing at relieving the pinch consumers are feeling at the pump. Nationwide gas prices have soared 20 cents in the last two weeks to a national average of $3.07, leaving American consumers digging deeper in their pockets as oil companies turn in record profits, such as Exxon's $39.5 billion profit in 2006.

"This legislation is about accountability and consumer protection," Klobuchar said. "These record prices are hurting our families and businesses, and oil companies need to know that when they unfairly hike up oil prices simply to get richer at the expense of the American consumer, there are going to be consequences."

Senator Klobuchar has been fighting price gouging oil companies since her campaign in 2006. During that time, she called for a "gas gouging penalty" against oil companies that were cheating American consumers at the gas pump. Klobuchar has also pushed for more market transparency and punishments for uncooperative oil companies.

Under the new legislation, the Federal Trade Commission (FTC) could conduct investigations and fine companies for unfair price gouging. Currently, there is no federal legislation addressing price gouging for oil and gas.

The legislation is expected to reach the Senate floor for debate sometime in June.

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