Ethanol issue clogs fuel bill

Ethanol mileage credits have become a key sticking point as negotiators from the House and Senate work to craft a 35-mpg energy bill acceptable to both houses of Congress, the White House and U.S. automakers. U.S. Rep. John Dingell, chairman of the House Energy and Commerce Committee, said late Tuesday that negotiators are making progress, but that a deal remains elusive.

"It's like pushing a wheelbarrow up a hill, but we persist," said Dingell, D-Dearborn.

Dingell wants to make a deal to dramatically raise fuel economy standards as part of a broader energy bill that Democratic leaders want to send to President Bush before the end of the year.

He is trying to hammer out a compromise to the Senate energy bill passed in June that called for raising fuel economy standards to 35 mpg by 2020 for cars and trucks combined. A House bill passed in August did not address fuel economy.

Last week, Dingell's aides made a proposal to the Senate Commerce Committee that went further than a bill in the House, backed by automakers, that would hike fuel economy to between 32 and 35 mpg by 2022.

It was rejected by the Senate staffers, who responded with a proposal Monday that Dingell rejected. More at Detroit News