Friday, December 7, 2007

Bill to Raise MPG and Cut $13 Bil in Tax Breaks for Oil Industry Blocked in Senate

Washington (TGW) – A bill that would end billions of dollars in tax breaks for the oil industry and raise mileage standards hit a roadblock in the Senate today.

The bill failed on a procedural vote 7 votes short of the needed 60 majority, 53-42.

The law would require car manufacturers to raise their mileage standards up to 35 miles per gallon by 2020. The current standard, 27.5 mpg was passed in 1975.

Senators said the vote did not mean the bill was done for.

"This doesn't mark the end of this bill," said Sen. Pete Domenici of New Mexico, the ranking Republican on the Senate Energy and Natural Resources Committee. "It means we have to go to work to fix some of the problems that the House bill has generated for us."

The panel’s Democratic chairman thought a new version could make it onto the floor by next week.

The bill also includes standards to repeal $13 billion in tax breaks for the oil industry, and to require electricity utility companies generate 15 percent of their energy from renewable sources by 2020.

President Bush has threatened to veto the bill.

Via :: CNN