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WASHINGTON -- Congress agreed to raise fuel-economy standards by 40 percent for cars and light trucks by 2020, resulting in each type of vehicle's mileage standards to meet a national average of 35 miles per gallon, Bloomberg News reported.
"This landmark energy legislation will offer the automobile industry the certainty it needs, while offering flexibility to automakers and ensuring we keep American manufacturing jobs and continued domestic production of smaller vehicles," House Speaker Nancy Pelosi said in a statement cited by Bloomberg News.
The new level, which is higher than what automakers wanted, will still see credits given to auto companies that manufacture vehicles that run on alternate fuels, the report stated.
The deal marks the first overhaul of fuel-economy rules in three decades, according to the report. Automakers argued that compliance would cost billions of dollars that would be passed onto consumers, the report stated.
The proposal was worked out by House and Senate negotiators over the weekend and is part of a larger energy bill scheduled to be voted on by Congress this month. The energy bill also will include new goals for renewable sources of energy, the report stated.