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Speaking of the Government: from edmunds


Higher Fuel Economy Standard Approved by U.S. House; Bill Blocked by Senate

WASHINGTON, D.C. — The U.S. House of Representatives approved a bill on Thursday that would raise fuel economy standards, remove tax breaks for oil and natural gas companies, and extend tax credits to alternative-energy providers and buyers of hybrid vehicles. The Senate moved almost immediately to block the bill, with Senate Democrats failing to gather the necessary 60 votes on Friday needed to bring the legislation to a vote.

The 235-181 vote in the House was encouraging to alt-energy boosters, but it is doubtful today whether it will ever reach a vote in the Senate, and if so, questionable whether it can get past President Bush, who could veto the bill.

Corporate Average Fuel Economy (CAFE) standards under the bill would be raised to 35 mpg by 2020, a 40 percent increase over the current standard of 27.5 mpg for cars and 22.2 mpg for SUVs and light trucks.

The bill repeals $13 billion in tax subsidies for five top oil and gas companies. The list includes BP, ConocoPhillips, Chevron, Exxon Mobil and Royal Dutch Shell. Some of the total $21 billion in new tax revenue from the legislation would be used to extend tax credits for alternative energy providers using such technology as solar, wind and biomass.

The bill would also require publicly held utilities to use renewable sources for 15 percent of their energy.

What this means to you: Another great day for bipartisanism in the U.S. Congress. Unfortunately, the result is more infighting while the needle gets closer to the $100-a-barrel mark. — Laura Sky Brown, Correspondent