Auto industry could get free pollution credits for producing fuel-efficient cars

The auto industry could receive free pollution credits under a new compromise reached by the House Democrats on a bill to cut greenhouse-gas emissions. According to Automotive News, the new bill would give free pollution credits to automakers that produce electric and advanced-technology vehicles.

The auto industry would get 3 percent of all free permits for factories from 2012 to 2017 and 1 percent of such allowances after that time period, until 2025. House Energy and Commerce Committee Chairman Henry Waxman says that the bill will help companies cut costs while focusing on reducing vehicle emissions.

The rest of the free permits will be given to oil refineries, utilities and heavy manufacturers.

– By: Omar Rana