From Detroit Free Press

WASHINGTON -- U.S. Rep. John Dingell has shelved his automaker-friendly proposals on fuel economy standards and California emission rules, delaying until later this year action on tougher mileage increases.

Dingell pulled the bill after opposition by House Speaker Nancy Pelosi and other supporters of tougher fuel economy standards. The move in the House pushes off a congressional showdown over increases in fuel efficiency standards until later this year, with the Senate wrestling to produce an energy bill before its July 4th recess.

Pelosi and backers of tougher fuel economy standards had strongly opposed the proposals in the draft of Dingell's energy package.

The draft would have required automakers to hit an average of 36 miles per gallon (mpg) for cars after 2021 and 30 mpg for trucks after 2024, levels environmentalists and several lawmakers consider too low.

It also would have blocked the U.S. Environmental Protection Agency from regulating greenhouse gas emissions from vehicles and overturned laws in California and 11 other states seeking the same power.

Rep. Ed Markey, the Massachusetts Democrat who is the main proponent of tougher fuel economy standards in the House, hailed Dingell's move.

The draft bill "would have taken our nation in exactly the wrong direction when it comes to energy independence and global warming," Markey said in a statement.

After Dingell's proposals were unveiled earlier this month, Pelosi and a dozen Democratic members began to voice strong opposition. Dingell had called the bill a "superb starting point," warning that automakers could choke on fuel economy rules from several government agencies.

In a memo to the House Energy and Commerce Committee members Monday, Dingell and Rep. Rick Boucher, D-VA, said in order to meet a goal of passing a bill out of committee in the next two weeks, the revised draft will "proceed with provisions that represent consensus" such as grants for plug-in hybrid research.

As for the more controversial proposals on fuel economy, "we are committed to addressing them and others when we take up comprehensive climate change legislation in the fall," the memo said.

The Alliance of Automobile Manufacturers, the industry trade group that includes Detroit's automakers and Toyota, said through a spokesman that the delay "is a recognition of how complex the issue of fuel economy is."

"We look forward to working with Chairman Boucher and other members of the Commerce Committee to craft a proposal that enhances our energy security and reduces greenhouse gas emission while at the same time preserves vehicle choice," the group said.

Dingell has said that he would seek to replace the federal Corporate Average Fuel Economy standards for automakers with regulations that fit into an economy-wide carbon control system. But several House members back tougher fuel economy standards, similar to the Senate Democratic proposal of 35 mpg by 2020.

The Senate plan also could get sidetracked by wrangling over several portions of the broad energy bill under debate in the Senate.

Michigan's Democratic senators are expected to introduce their alternative fuel economy plan, which the auto industry has been lobbying strongly for, on Wednesday with a vote on their amendment possible later this week.

But Senate Majority Leader Harry Reid said Monday that he hoped to finish the energy bill by Thursday, when the Senate plans to resume debate on its immigration bill.

Reid said the fuel economy increase was one of the top reasons for passing the energy bill and criticized the auto industry for saying it could not reach a 35 mpg standard.

"This is a bill that every senator should agree on, but they're not," Reid said. As for the 35 mpg proposal, "Our country is one of ingenuity, of inventing things. Certainly we can do that."

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