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 the 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 spur production of 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 sources like ethanol from grasses and wood chips, biodiesel and for 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.
White House Press Secretary Dana Perino called the House-passed bill “misguided” and unacceptable.
“Their proposal would raise taxes and increase energy prices for Americans. That is a misguided approach and if it made it to the president’s desk, he would veto it,” she said.
The White House in an earlier statement called the proposed taxes on the oil companies unfairly “punitive” to a single industry and said the requirement for electric utilities nationwide to use renewable fuels such as wind and solar to generate 15 percent of their electricity would be harmful to some regions of the country where there is little wind or solar energy potential, resulting in higher electricity costs.
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