House approves energy bill

The U.S. House of Representatives approved an energy bill today that includes the first boost in federal automobile fuel standards in over 30 years, and a repeal of billions of dollars in oil and gas company tax breaks.

The energy bill now moves to the Senate, but even if it passes muster there, it faces an almost certain veto from the White House.

"Democratic leaders in the House today pushed a partisan bill, that members had very little opportunity to study before the vote, which they knew was unacceptable to the President and had no chance being signed into law," said White House press secretary Dana Perino in a statement.

The bill includes $21 billion in incentives for renewables, which would largely be funded by pulling back $13 billion in tax breaks for oil and gas companies (see U.S. Congress to look at $21B energy tax package).

The boost in fuel standards, which was opposed by automakers, would require the car companies to achieve a fleet average of 35 miles per gallon on their cars and light trucks by 2020. That's a 40 percent reduction from current standards (see U.S. lawmakers reach deal on CAFE standards).

Perino said the proposed legislation would raise taxes and increase energy prices. "We hope the Senate will take a more cooperative approach and put forth a bill the President can sign."

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