Washington DC – The House of Representatives has passed an energy bill that will drastically raise fuel efficiency standards for cars and small trucks.  Electric utilities would also be mandated to produce some of their power from clean energy sources like wind or solar.  The bill now heads to the Senate where it faces a tough battle.  President Bush has also voice his concerns about the bill.

Vehicle fuel economy would be gradually raised to 35 miles-per-gallon by 2020, a 40 percent increase from the current 25 MPG number that was passed way back in 1975.  Car companies that develop hybrid or alternative fuel vehicles would be given a small 1.9 MPG credit under the bill.

Electrical companies would be forced to produce 15 percent of their power from clean energy sources.  Production of renewable fuels, like ethanol, gets a huge boost from the bill and will rise from 5 to 36 billion gallons by 2022.  Of course you can’t have a bill without higher taxes and this one is no different with $21 billion in both new taxes and the elimination of tax incentives, mostly to the oil industry.

The bill passed by a 235 to 181 margin and now heads to the Senate where it will face a bitter fight from senators in the southeast states – states where wind power doesn’t come easily.  Those senators fear the 15% renewable energy mandate on utilities would increase energy prices for their constituents.

The White House says that it opposes any new taxes on oil companies and vows to veto the bill in its current form.