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OCR for page 130
D Statement of Work: Effectiveness and Impact of CAFE Standards Since CAFE standards were established 25 years ago, there have been significant changes in motor vehicle tech- nology, globalization of the industry, the mix and character- istics of vehicle sales, production capacity, and other fac- tors. The committee formed to carry out this study will evaluate the implications of these changes, as well as changes anticipated in the next few years, on the need for CAFE, as well as the stringency and/or structure of the CAFE program in future years. The committee shall give priority in its ana- lytical work to relatively recent developments that have not been well analyzed in existing literature reviewing the CAFE program. Specifically, these events include economic and other impacts of current levels of oil imports, advances in technological development and commercialization, the need to reduce greenhouse gas emissions, and increased market share for light trucks, including SUVs and minivans. The study shall examine, among other factors: (1) The statutory criteria (economic practicability, tech- nological feasibility, need for the U.S. to conserve energy, the classification definitions used to distin- guish passenger cars from light trucks, and the effect of other regulations); (2) The impact of CAFE standards on motor vehicle safety; 130 (3) Disparate impacts on the U.S. automotive sector; (4) The effect on U.S. employment in the automotive sector; (5) The effect on the automotive consumer; and (6) The effect of requiring CAFE calculations for do- mestic and non-domestic fleets. The committee shall examine the possibility of either positive or negative impacts, if any, in each of these areas as a result of CAFE standards. The committee shall also include in that analysis a statement of both the benefits and the costs, if any, in each of the identified areas, and shall include to the extent possible both quantifiable and non- quantifiable costs or benefits. The committee may also ex- amine a broader range of related issues appropriate to pro- viding the most accurate possible report. For example, in reviewing possible impacts on U.S. employment in the au- tomotive sector, the committee shall also examine the im- pacts on U.S. employment in other sectors of the economy from both CAFE standards and resulting reductions in oil imports if relevant to providing a complete picture of im- pacts on U.S. employment. The committee shall write a report documenting its con- clusions and recommendations.