House bill raises rules of auto fuel efficiency

The bill faces a Senate
filibuster and a veto threat.

WASHINGTON — The House approved the first increase in federal automobile fuel efficiency requirements in three decades Thursday as part of an energy bill that also repeals billions of dollars in oil company tax breaks and encourages use of renewable fuels.

The bill, passed by a vote of 235-181, faces a certain filibuster in the Senate and a veto threat from the White House.

Democrats characterized the legislation as “a new direction” in U.S. energy policy away from dependence on fossil fuels. But Republicans said the actions amount to government mandates that would lead to higher energy prices, while doing little to produce more domestic oil or natural gas — fuels they say will remain essential for decades to come.

“We will send our energy dollars to the Midwest, not the Middle East,” countered House Speaker Nancy Pelosi, referring to the bill’s emphasis on promoting renewable energy sources, especially ethanol, which would see a sevenfold increase by 2022 to 36 billion gallons a year.

“The point of this is, are we about the past or are we about the future,” declared Pelosi, D-Calif.

The bill would roll back $13.5 billion in tax breaks enjoyed by the five largest U.S. oil companies with the money to be used for tax incentives for development of renewable energy, including cellulosic ethanol from grasses and wood chips and biodiesel, and to spur energy efficiency programs and conservation.

“There’s nothing in here that’s going to lower gas prices in America ... nothing that is going to help American families deal with heating costs this winter ... nothing to increase production,” complained Republican leader John Boehner of Ohio.

The centerpiece of the bill is a requirement to boost automobile fuel economy by 40 percent to an industry average of 35 miles per gallon by 2020, the first such increase since 1975, when Congress enacted the federal auto fuel economy requirements.

Pelosi garnered enough support to assure passage by working out a deal with Rep. John Dingell, D-Mich., a longtime staunch protector of the auto industry. Dingell more than a year ago warned auto executives the tide had turned on fuel economy and it was inevitable that stricter requirements were in the offing. He got some concessions to help the industry in return for his support of the bill.