( AP ) - Democratic leaders working on an energy bill were trying to forge compromises Monday to increase the use of renewable fuels both in cars and by electric utilities after reaching a deal earlier that would raise vehicle fuel economy by 40 percent.
But they also faced another thorny issue: How to cover up to $3 million a year in lost revenue if motorists buy less gas because of the more fuel efficient cars and SUVs, meaning less revenue for highway upkeep and construction.
Congressional rules require any revenue losses from new legislation to be offset with new revenues, so lawmakers will have to craft a tax package to deal with the shortfall.
Meanwhile, the White House expressed concern over the renewable fuels and auto efficiency provisions and at the hint of new taxes as part of the energy package.
"It appears Congress may intend to produce a bill the president cannot sign," Allan Hubbard, director of the president's National Economic Council, wrote House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid of Nevada. He urged them to work with the administration to pass a bill acceptable to the White House.
Pelosi, D-Calif., met with Hubbard for more than an hour Monday evening and "had a thorough discussion" about the energy legislation, said Drew Hammill, her spokesman. He said Pelosi was hopeful the president could support the final package.
With motorists irate about $3-plus gasoline and record high winter heating bills, House and Senate Democratic leaders hoped to pass their energy bill before departing for the Christmas recess.
They took a giant step toward that by reaching a compromise with Rep. John Dingell, D-Mich., chairman of the Energy and Commerce Committee and a staunch protector of the auto industry, late last Friday on requiring automakers to boost the average fuel economy to 35 miles per gallon by 2020.
It would be the first increase in the federal vehicle fuel standard in 32 years.
But it won't become law unless agreements on the other thorny issues are worked out. The plan is for a House vote on the compromise bill on Thursday with the Senate taking up the energy package perhaps the following week.
Among the most contentious matter concerns how much renewable fuel -- wind, solar power or biofuels -- utilities should use to produce their power.
Pelosi is described as adamant in wanting to include a requirement -- already passed once by the House -- for utilities to produce 15 percent of their electricity from renewable energy sources.