WASHINGTON — A task force on governmental regulations chaired by Vice President George Bush today proposed abolishing U.S. fuel economy standards, saying they are crimping the ability of domestic auto makers to respond to market demands.
The Presidential Task Force on Regulatory Relief, re-established by President Reagan on Dec. 15 to review federal regulatory programs, also recommended shutting down the Interstate Commerce Commission and presented a formal list of regulatory changes for the banking industry.
Members of the task force include Atty. Gen. Edwin Meese III, Commerce Secretary Malcolm Baldrige, Budget Director James C. Miller III and Beryl W. Sprinkel, chairman of the Council of Economic Advisors.
The group quickly took aim at the Corporate Average Fuel Economy Standards, passed during the oil crisis of the 1970s when gas prices were being regulated by the government. The law requires auto makers to meet rigid fuel efficiency standards or face fines.