The U.S. House of representatives Thursday passed a new comprehensive energy bill that would change the way the country is fueled despite the strong opposition from the White House.
The Energy Independence and Security Act, passed by a vote of 235-181, will head to the Senate for approval.
The bill, if passed, would boost U.S. automobile fuel economy by 40 percent to an industry average of 35 miles per gallon by 2020. It would be the first increase in the federal vehicle standard for cars in 32 years.
It also would require a sevenfold increase in the use of ethanol as a motor fuel to 36 billion gallons a year by 2022, with two-thirds to be cellulosic ethanol from such feedstock as prairie grass and wood chips.
Democratic House Speaker Nancy Pelosi hailed the legislation, saying the bill expected to be taken up by the Senate next week.
"It will be a shot heard round the world for energy independence in our country," she said. "It's about energy security, it's about environmental health, and it is a moral responsibility."
She also said the prices of oil and natural gas may not go down tomorrow, the fact is that "we are making a plan for the future."
Democratic Rep. John Dingell, a longtime staunch protector of the auto industry, also said the bill contained landmark achievement.
"The bill is not the ultimate answer to our dependence on imported oil, to high energy prices, or to climate change, but it is a major and important step toward those goals," he said in a statement.
However, Republican minority leader John Boehner criticized the legislation as a "no-energy" bill that did little to help defend the U.S. energy security.
Under a 21 billion dollar tax package, some 13.5 billion dollars in tax breaks for the five largest oil companies would be repealed to be used for tax incentives to promote renewable fuels and energy efficiency, according to the new energy bill.
Analysts said that the "Five Oil Bigs," namely Exxon Mobile, Chevron, Conoco Philips, Royal Dutch Shell PLC and BP PLC would be the hardest hit by the tax repeals.
The American Petroleum Institute, which represents the major oil companies, has dismissed that the new oil taxes would cause companies to cut back on investments for producing oil and expanding refineries.
"The House ducked the opportunity to draft balanced energy legislation that would ensure reliable energy supplies for American consumers," said a statement released by the API.
"The tax provisions are counterproductive, making it more difficult to expand domestic oil and natural gas production and refining capacity while costing American jobs," it added.