House Democrats agree on higher fuel standards

By Chris Baltimore

WASHINGTON (Reuters) - Democrats in the U.S. House of Representatives agreed on Friday on a bill to raise automotive fuel efficiency standards by 40 percent by 2020 but set separate rules for cars and light trucks as a concession to Detroit automakers.

After getting an earful from constituents over the Thanksgiving holiday about U.S. pump prices over $3 a gallon and crude oil prices hovering near $100 a barrel, House lawmakers look poised to take quick action next week.

The House is expected to vote on an energy bill as soon as December 5 after House Speaker Nancy Pelosi struck a deal with Michigan Rep. John Dingell, a long-time champion of Detroit automakers like General Motors and Ford, to raise Corporate Average Fuel Economy standards to 35 miles per gallon by 2020.

That's similar to a provision passed by the Senate this summer -- but modified to set separate efficiency rules for cars and light trucks.

"This landmark energy legislation will offer the automobile industry the certainty it needs, while offering flexibility to automakers and ensuring we keep American manufacturing jobs and continued domestic production of smaller vehicles," Pelosi said in a statement announcing the deal.

Pelosi said she wants the bill to contain a controversial provision sought by Democrats to require utilities to get 15 percent of their electricity from wind, solar and other renewable sources.

Dingell and Pelosi have sparred over the fuel efficiency standards for months.

Dingell, chairman of the House Energy and Commerce Committee, had threatened to lobby against the proposal because it could endanger Detroit automakers in his home district. He said the CAFE provisions in the new bill will "provide critical environmental safeguards without jeopardizing American jobs."