On Wednesday morning, the House of Representatives released a bill which would supply a package of loans to the American auto industry totaling $15 billion. The loans, which are supposed to provide funding to the industry through March 31^st of next year, come with significant strings attached—most importantly the creation of a “car czar” who would have oversight of the industry, and who would have veto authority over any business transaction of $100 million or more. Congressional Democrats also released a discussion draft of the bill, which could be voted on as early as this afternoon.

While much of the discussion surrounding the bill will focus on the authority given to the government in overseeing the auto industry, the bill also contains a number of important provisions dealing with automobile fuel efficiency, public transport and greenhouse gas emissions. Significantly, Section 10 (g) of the bill prevents the industry “from participating in, pursuing, funding, or supporting in any way, any legal challenge (existing or contemplated) to State laws concerning greenhouse gas emission standards.”

Beyond this blanket provision on participating in lawsuits—likely aimed at protecting the state of California’s emissions standards, Section 13 of the bill requires the industry to study the feasibility of construction of vehicles for sale to public transit agencies. The bill also requires automakers to submit long term restructuring plans which must include provisions which will allow them to “comply with any and all Federal and State fuel efficiency requirements and the commencement of domestic advanced technology vehicle manufacturing, as required in the Energy Independence and Security Act of 2007.”

Of course, this bill has yet to be voted on by either chamber of Congress—and some Senate Republicans, including Richard Shelby, ranking member of the Senate Banking Committee, have expressed considerable concerns. The provisions mentioned above, however, show that policymakers are interested in using the opportunities created by the financial crisis to create incentives for further “greening” of American industries.

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