House Passes Fuel Standards Deal

Congressional staffers have outlined an agreement that would increase US fuel economy standards to 35 miles per gallon by 2020. The Proposal has been approved by the House, including Speaker Nancy Pelosi. If the bill goes through in the Senate, the fuel standards increase would be the first since the fuel economy law in 1975. The deal would require federal regulators to treat cars and trucks differently under fuel economy rules, and preserve credits for those that sell vehicles capable of burning ethanol or other alternative fuels. Detroit automakers had been worried about this because they will face higher costs to meet these strict standards than their foreign competitors will. The White House has vowed aa presidential veto if the bill comes his desk.