STATEMENT FOR THE RECORD - MICHAEL C. BURGESS

ENERGY AND COMMERCE

ENERGY AND AIR QUALITY SUBCOMMITTEE HEARING

"A Review of the Administration's Energy Proposals for the Transportation Sector"

February 28, 2007

Thank you, Mr. Chairman for holding this hearing.

I think by now my fellow committee members know that I believe our best bet to decrease consumption of gasoline, at least in the short run, would be to increase the number of hybrid cars on the road.

I've owned my Prius now for about 2 years. I've logged a lot of miles across North Texas during the course of that time and there's no telling how much money I've saved on gasoline.

But we're here today to talk about CAFE standards.

I have some serious reservations about the CAFE system. It forces manufacturers to make cars that no one wants to buy. That's not good for the long-term viability of our auto manufacturers and does nothing to reduce energy consumption.

It is consumer demand and consumer choice that will ultimately determine the "fuel economy" of the vehicles that are actually on America's highways and biways.

Until consumers realize that there's a direct correlation between energy prices, dependence on foreign oil and their SUVs or other big gas guzzlers, we will not see a change in consumer habits.

Today there are more Priuses and other hybrids on the road than there were a year ago, which was more than there were on the road 5 years ago. The market has recognized this increase in demand and now there are even more models available to choose from – including the unofficial car of Texas - hybrid SUVs.

The tax incentives for the purchase of hybrid and alternative fueled vehicles in the Energy Bill helped to encourage the purchase of these more fuel efficient cars; but the primary driver behind this trend is consumer demand.

I would like to see this committee examine market-based alternatives to the CAFE system.

But as long as we are functioning within the CAFE system, I believe that the Bush Administration's "vehicle class" approach makes sense, although I do have some reservations about the work-ability of the credit trading proposal.

I would like to note that this proposal is very similar to legislation we considered in this committee during the 109th Congress under the leadership of then-Chairman, and now Ranking Member, Joe Barton. I am looking forward to hearing from our witnesses today on this proposal.