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Bush auto fuel efficiency plan criticized

WASHINGTON, Nov 20 (Reuters) - Auto makers and environmentalists on Wednesday criticized a draft Bush administration plan to raise fuel economy standards for sport utility vehicles and other light trucks.

An administration source said the proposal under development would boost fuel standards for that popular class of vehicles by 1.5 miles per gallon between the 2005-2007 model years. The total would be realized in half-gallon annual increases.

The current Corporate Average Fuel Economy (CAFE) standards, first adopted by Congress for the industry in 1975 after the Arab oil embargo, require passenger cars to average 27.5 mpg and light trucks to get 20.7 mpg.

At the time, light trucks were allowed to get lower mileage because they were used mostly by farmers and small businesses. Now, sport utility vehicles, pickups and minivans account for half of U.S. vehicle sales.

Regulators resumed their study of CAFE levels last year after a six-year prohibition by Congress from doing that work due to strong opposition from key lawmakers.

They have based much of their draft plan on data from the Big Three automakers in Detroit -- General Motors Corp. Ford Motor Co. and DaimlerChrysler AG.

But the industry has long opposed regulation mandating higher fuel standards, saying any increase should come from innovation and technology.

The 'Big Three' have all committed to selling limited numbers of more fuel efficient hybrid-powered pickups or SUVs, but those on the market so far account for only a tiny fraction of overall sales.

VERY HIGH MILEAGE

"We already offer consumers vehicles that get very high gas mileage but if consumers aren't purchasing those vehicles, those numbers are unattainable," said Charles Territo, a spokesman for the Alliance of Automobile Manufacturers.

"That's the inherent flaw with CAFE ... It doesn't take into account consumer purchasing patterns and consumer behavior," Territo said.

The Union of Concerned Scientists, a scientific and environmental advocacy organization, said fuel savings from the administration's plan would be negligible.

"This is merely political theater to create an impression the administration is doing something to reduce oil dependence," said Michelle Robinson, senior analyst for the nonprofit group. "If the administration really cared about reducing our oil use, this proposal would be very different."

Rep. Edward Markey of Massachusetts, a senior Democrat on the Energy and Commerce Committee in the House of Representatives, said the draft plan was inadequate because it proposes less than the 'Big Three' have already promised to do voluntarily.

"This country is on the brink of war with Iraq, and the Bush administration claims to be striving for energy independence -- yet this proposed increase in fuel economy for SUVs doesn't even come close to what could be achieved using technologies that are already available," Markey said.

The Transportation Department's National Highway Traffic Safety Administration would like to formally propose the standard in the coming weeks and finalize it by April, the administration source said under the condition of anonymity.

Under federal law, automakers must be given at least 18 months to make design changes if NHTSA proposes a fuel efficiency increase.