Sens. Richard Lugar (R-Ind.), Barack Obama (D-Ill.) and Joe Biden (D-Del.) have introduced fuel economy reform legislation. The bill, S. 3694, would increase fuel economy standards, extend the tax credit for consumers who purchase hybrid and alternative fuel vehicles. It also would create a new tax credit for manufacturers to retool, expand, or establish new facilities for the production of alternative fuel vehicles or components.
While MEMA opposes the bill's call for increased fuel economy standards, it is working with Lugar's staff to improve the retooling tax credit provision.