The Senate passed a comprehensive energy bill late Thursday that raises average auto fuel efficiency standards, but the measure did not include a tax on oil companies that would have boosted alternative fuel development, Agence France-Press reported.
“This bill starts America on a path towards reducing our reliance on oil by increasing the nation's use of renewable fuels, Senate Majority Leader Harry Reid (D-Nev.) said after the bill was passed shortly before midnight.
A House committee has begun work on its version of the measure, but the full House has not taken up the matter yet.
Republican Senators blocked an amendment designed to raise taxes on oil company profits to provide incentives for the development of alternative fuels, saying the move would further raise gasoline prices, AFP reported.
But senators approved a bipartisan-backed provision to boost fuel-economy standards for cars, light trucks and sports utility vehicles to 35 mpg within 10 years, AFP said.
The deal, which represents the most sweeping attempt in two decades to boost fuel economy, emerged after hours of intense bargaining, AFP reported.