Kerry Energy Plan Calls for Tougher Fuel Rules

Sen. John F. Kerry of Massachusetts, moving to stake his claim as a leading environmentalist among the Democratic presidential candidates, will call today for tougher miles-per-gallon rules for SUVs and other vehicles.

His plan includes federal aid to encourage automobile manufacturers to make more fuel-efficient cars -- an effort to overcome industry opposition that has thwarted similar proposals in recent years.

In a speech to be delivered in Cedar Rapids, Iowa, Kerry will propose a national energy policy that would raise fuel-efficiency standards for vehicles to 36 mpg by 2015.

Currently, fleets of light trucks -- including sport utility vehicles, minivans and pickups -- must meet an average of 20.7 mpg. That is due to rise to 22.2 mpg for the 2007 model year. The average for cars is 27.5 mpg.

Under Kerry’s plan, the auto industry would receive $1 billion a year to assist it in converting factories to make more fuel-efficient cars. Consumers would be offered tax incentives to encourage them to buy vehicles powered by alternative fuels.

Kerry also will propose requiring one-fifth of the nation’s electricity to be produced from alternative sources, such as solar and wind power, by 2020.

The Kerry campaign provided The Times with excerpts of the speech.

With his remarks, Kerry hopes to spotlight an issue he has focused on in Congress -- and draw contrasts between himself and some of his main rivals for the Democratic nomination.

Last year, Kerry led an effort to raise fuel-economy standards but was rebuffed by the Senate in the face of opposition from the Bush administration, auto companies and the auto workers union. They argued that stricter rules would hurt the U.S. economy and, because of design changes needed to meet the higher mileage standards, could lead to less safe vehicles.

Sen. Joseph I. Lieberman of Connecticut, one of Kerry’s foes in the Democratic race, has supported tougher miles-per-gallon rules.

But he has taken a different approach in trying to overcome industry opposition, proposing a trading system that would allow auto companies that choose to build larger, less efficient vehicles to buy “credits” from manufacturers of smaller, more efficient vehicles.

Instead of setting a “rigid one-size-fits-all standard for every car,” Lieberman said, his proposal would set a national standard for saving 2 million barrels of oil a day by 2015 while giving automakers flexibility in achieving the goal.

Among other Democratic presidential candidates, a spokesman for Howard Dean said the former Vermont governor supports tougher fuel-efficiency standards, including a requirement that SUVs meet the same standard as other vehicles.

An aide to Sen. John Edwards of North Carolina said the candidate favors increasing the mileage standard, but did not specify by how much.

Edwards last year voted for a measure that would have exempted pickup trucks from tougher standards.

Kerry, Lieberman and Sen. Bob Graham of Florida -- who also is seeking the Democratic nod -- opposed the exemption.

Kerry’s stand could prove politically risky in some states because of the regional nature of energy politics.

For example, an aide to Rep. Richard A. Gephardt of Missouri, another of the Democratic candidates, said Gephardt would “be happy to debate fuel economy -- in Michigan.”

Gephardt was among the Democratic lawmakers from auto-producing states who joined regulatory-wary Republicans two years ago in a House vote to reject tougher mileage standards.

He missed a vote in April, in which the House defeated an effort to raise the standards for all vehicles to 30 mpg by 2010.

A Gephardt spokeswoman said the former House minority leader, nonetheless, soon will unveil a plan for improving fuel economy.

In his speech, Kerry also will criticize President Bush for promoting energy policies that he says put too much emphasis on more domestic production of oil, gas and coal.

Kerry, in excerpts of his speech, terms Bush’s energy policy “of big oil, by big oil, for big oil.” Kerry also derides the prospect that increased domestic production can significantly reduce the U.S. dependence on foreign oil.

“America only has 3% of the world’s oil reserves,” Kerry says. “There is no metaphysical or miraculous way for us to drill our way out of a 60% foreign oil dependence. We have to invent our way out of it.”

With Iowa the site of party caucuses that kick off the Democratic race in early January, Kerry also plans to remind voters there of his support for a provision of an energy bill headed toward Senate approval that would double the amount of corn-based ethanol that would have to be added to the nation’s gasoline supply.