Looks like the U.S. auto bailout debate is going to come down to whether automakers will be held to state or federal fuel efficiency standards as a condition of the bridge loans. Dems want the tighter state standards while the Repubs want the looser federal standards:
House Democrats used language requiring that autos meet stricter "applicable" fuel efficiency and emissions standards -- which would cover consideration of state standards such as those adopted in California and New York -- while the Senate version of the bill calls for vehicles to meet "federal" standards, which are not as high as some state benchmarks.
A Senate Democratic leadership aide told CNN that Senate Republican leader Mitch McConnell told Senate Majority Leader Harry Reid Wednesday morning that the bill would never pass the Senate with the House language.
House Speaker Nancy Pelosi wanted the higher efficiency standard so that liberal Democrats who are not inclined to help the auto manufacturers would feel they had assurances that these companies would adopt and make more fuel-efficient cars, according to House Democratic aides.
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