House decides against tougher fuel economy But Democrat says issue isn't dead despite plan to withdraw amendment raising mileage standards for vehicles

WASHINGTON — House Democrats decided today not to try to raise fuel mileage standards for cars and trucks as part of the energy package lawmakers will vote on this week.

As Democrats put the finishing touches on a pair of bills they hope to pass out of the House on Friday, Rep. Edward Markey, D-Mass. — after consulting with House Speaker Nancy Pelosi, D-Calif. — announced he would withdraw an amendment designed to raise fuel mileage requirements to 35 miles per gallon by 2019.

Raising fuel efficiency standards for cars and light trucks was the centerpiece of an energy bill the Senate approved in June. It would require automakers to achieve average 35 miles per gallon for cars, pickup trucks, sport utility vehicles and minivans by 2020.

But House Democrats have been at war with themselves over fuel economy standards.

The nation's automakers and their allies on Capitol Hill — including House Energy and Commerce Committee Chairman John Dingell, D-Mich. — had thrown their support behind a more modest fuel efficiency increase proposed by Rep. Baron Hill, D-Ind. He has withdrawn the proposal.

Markey said he is confident the fuel efficiency issue can be addressed when House and Senate negotiators meet in a conference committee to hash out differences between their proposals. That probably will be in September if the House passes its bill before the August recess.

"The country cannot afford to accept less than a 35 mile-per-gallon standard if we are to wean ourselves off of our addiction to imported oil," he said.

Pelosi said she supports the fuel mileage language in the Senate bill, but didn't want to cause problems within her own ranks.

"My long-stated goal has been to bring to the floor a strong energy bill that builds on the unity we have within the Democratic caucus," Pelosi said in a statement.

Legislation targeting utilities raises concerns

Rep. Tom Udall , D-N.M., will offer an amendment that would require utility companies to generate 15 percent of their electricity from renewable energy sources such as wind and solar power by 2020.

But Rep. Gene Green, of Houston, a leader of a group of about two dozen Democrats from energy states, worries whether utilities will be able to meet that kind of standard without raising utility bills.

"I don't know if Texas or other states can get to 15 percent," Green said. "It sounds like we're voting on great messages but not good law."

The thrust of the House bill is to reduce the nation's dependence on foreign oil with a host of conservation measures, including new efficiency standards for dishwashers, refrigerators and other appliances; more energy efficient lighting; expanded use of ethanol; and tax incentives for consumers to buy fuel-efficient ''plug-in" hybrid cars featuring batteries that can be recharged when the car is not in use.

The Democrats' package also includes a tax bill that would slap the oil companies with $16 billion in new taxes. The Senate rejected a similar tax package.

In the House, Green and others who've become known as "hydrocarbon Democrats" have been scrambling to remove some of the language targeting the industry.

Pelosi agreed last week to drop some provisions aimed at oil and gas royalties, drilling permits and interstate electric power lines.

Green was back at it today, trying to persuade House Ways and Means Committee Chairman Charles Rangel, D-N.Y., to relent on some of the tax provisions.

Green argues that while the oil and gas industry may be profitable of late, "it's a very cyclical business."

Republicans in the House cheered Green's efforts.

"Bless Gene Green," said Rep. Joe Barton, of Ennis, the ranking Republican on the House Energy and Commerce Committee. "I hope he wins more than he loses."

Barton and other Republicans argued that the Democrats' package does nothing to help generate new energy supplies.

Republicans are drafting a proposal that would encourage the development of fuel from coal, push for expanded use of nuclear power and encourage more oil and gas drilling.

david.ivanovich@chron.com , michelle.mittelstadt@chron.com