After experiencing a stiff upsurge in the oil prices and growing concern of degrading relationship with the other oil producing nations, Senate has passed an energy bill, which emphasis on the first big increase in fuel mileage requirements for passenger cars in more than two decades.

Senate pressed hard on the automakers, ordered them to develop more fuel economy engine. In its fresh ruling, Senate increase average fuel economy by 40 percent to 35 miles per gallon for cars, SUVs and pickups by 2020.

The bill shattered automakers hope, as they were expecting for a much smaller increase in fuel economy standards and is anticipated to keep fighting as the House takes up the issue. But Senate Democrats also fell short of their own goals. In a victory for the oil industry, Republican lawmakers successfully blocked a crucial component of the Democratic plan that would have raised taxes on oil companies by about $32 billion and used the money on tax breaks for wind power, solar power, ethanol and other renewable fuels.

Bill got the senate’s overwhelming support as it successfully obtained 65-27 votes. The measure now awaits action by the House, which is expected to take it up next week and then finally it will send to approval of president can take year to press as a law.

If bill presses to a law, than it will be a first increase in vehicle fuel efficiency since 1989, when it was set at 22.7 miles per gallon for cars.

Analysts estimate that by successfully implementing the proposed expectations, it would save nearly 2.5 million barrels of oil a day by 2025.

Republicans criticized the energy bill, as isn’t their any provisions for the battling oil industry and also obscure about the renewable and fuel efficiency strategy.

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Via: NYTimes
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