Congress approves auto fuel economy increase

updated 4:20 p.m. ET Dec. 18, 2007

WASHINGTON - Congress by a wide margin approved the first increase in automobile fuel economy in 32 years Tuesday, and President Bush plans to quickly sign the legislation, accepting the mandates on the auto industry.

The energy bill, boosting mileage by 40 percent to 35 miles per gallon, passed the House 314-100 and now goes to the White House, following the Senate’s approval last week.

In a statement, the White House said Bush will sign the legislation at the Energy Department on Wednesday.

In a dramatic shift to spur increased demand for nonfossil fuels, the bill also requires a six-fold increase in ethanol use to 36 billion gallons a year by 2022, a boon to farmers. And it requires new energy efficiency standards for an array of appliances, lighting and commercial and government buildings.

“This is a choice between yesterday and tomorrow” on energy policy, declared House Speaker Nancy Pelosi, D-Calif., who was closely involved in crafting the legislation. “It’s groundbreaking in what it will do.”

While some GOP lawmakers criticized the bill for failing to address the need for more domestic oil and natural gas production, 95 GOP lawmakers joined Democrats in support of the bill.

Pelosi and Senate Majority Leader Harry Reid of Nevada acknowledged that they didn’t get all they wanted — unable to push through a tax package that would have rolled back $13.5 billion in tax breaks for oil companies and used the money to help spur wind, solar and biomass energy development and conservation programs.

The House passed the tax provisions, but the Senate fell one vote short of getting it through under threat of a presidential veto and a GOP filibuster. “Were going to be back and get the vote quicker than you think,” Reid said at a news conference with Pelosi.

But Democrats said those shortcomings shouldn’t take away from the importance of the approved bill.

“This legislation is a historic turning point in energy policy,” said Majority Leader Steny Hoyer of Maryland because it will cut demand for foreign oil and promote nonfossil fuels that will cut greenhouse gases linked to global warming.

It increases energy efficiency “from light bulbs to light trucks,” said Rep. John Dingell, D-Mich., a longtime protector of the auto industry who was key to a compromise on vehicle efficiency increases.

Many Republicans denounced the Democratic-crafted bill for failing to push for more domestic production of fossil fuels and for mandates some GOP lawmakers warned will not be possible.

“What we have here is a mandatory conservation bill,” said Rep. Joe Barton, R-Texas. He argued that the auto fuel efficiency requirements and the huge increase in ethanol use may not prove to be technologically or economically possible.

Democrats disagreed. The legislation takes measured and concrete steps that are achievable, said Dingell.

The Senate passed the bill last week after discarding billions of dollars in higher taxes on oil companies and a solar and wind power mandate that opponents said would raise electric rates in the Southeast. President Bush and Senate Republicans opposed those measures.

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