Bush ready to waive fuel standards in loan

WASHINGTON, Nov. 18 (UPI) -- White House press secretary Dana Perino said Tuesday the Bush administration would agree to waive fuel standards on the $25 billion U.S. automaker loan.

Representatives of the Big Three automakers were on Capitol Hill Tuesday, lobbying for funds to help them avert bankruptcy.

Congress recently passed a measure providing $25 billion through the Department of Energy to help the industry retool to produce more fuel-efficient vehicles.

"They're still going to have to meet those standards, but if they need that money sooner and need it for other purposes, we're saying simply amend that bill and allow that money to be used for other things," Perino said.

But more funds would be a tougher sell, she said.

"We just don't think that we should provide the $25 billion that was already on the table, plus an additional $25 billion, unless companies can show us that they have a long-term path for viability," she said.

U.S. automakers "want the money that's already been appropriated and they want an additional $25 billion, which we think is unnecessary and unreasonable at this point," she added.

In addition to the White House's opposition to a second loan of $25 billion, "there's just no appetite for it in the Senate, as well," Perino said.