You're going to be very sorry about E-15

Budget deal blocks new White House 'czars,' funds Michigan-built tank

Washington- The House is set to vote on a $1 trillion funding bill that bars the Obama administration from hiring a new auto czar and other policy advisers - but funds a Michigan-built tank.

As part of a compromise struck late Thursday, the funding bill specifically prohibits "czars" related to health care, climate change, the auto industry and urban affairs.

The Obama administration has already done away with all of those czars - and the White House has noted that the Bush administration also used czars.

The White House first named Steve Rattner as "car czar" in February 2009, and he oversaw the bankruptcy reorganizations of General Motors Co. and Chrysler Group LLC.

Rattner was replaced by Ron Bloom in July 2009. He stepped down in January overseeing the $85 billion auto industry bailout to focus on manufacturing. He left the White House in August. Tim Massad, an assistant Treasury secretary, oversees the auto and bank bailouts.

The administration has given no timetable when it might sell its remaining 26.5 percent stake in GM, or its 74 percent stake in Detroit-based lender Ally Financial Inc. The Treasury said in a report last month it estimates it will lose $23.6 billion on the auto bailout.

The bill also includes $255 million to maintain production of the Abrams tank, part of Michigan's defense industrial base for 30 years. The bill funds tank upgrades at a rate of 70 per year - the level sought by Rep. Sander Levin, D-Royal Oak.

The Pentagon had proposed to halt production until 2017.

"This is an important victory for Michigan and the nation," Levin said. "The tank upgrade program is critical to ensuring our troops are protected on the battlefield and vital to Southeast Michigan's defense corridor."

Earlier this year, the Pentagon proposed to halt tank upgrades in 2013 and then restart tank production in 2017.

The Abrams tank program is run by General Dynamics Land Systems based in Sterling Heights and more than 200 Michigan businesses provide parts and engineering services to upgrade older M1 tanks to the more advanced M1A2 SEP version of the vehicle.

In other energy issues, the budget bill doesn't bar the Environmental Protection Agency from setting new emissions limits for the 2017-2025 model years as House Republicans had wanted.

The compromise showed the power of corn growers. Despite a bipartisan push, the deal dropped a bid to bar the EPA from moving ahead with a new higher blend of ethanol for use by vehicles from 2001 and newer called E15. In February, the House voted 285-136 to block the EPA from moving ahead with E15 regulations

"I'm disappointed that my proposal to block E15 was not included even though the same amendment was overwhelmingly approved by the House when it was voted on this year. A shift to E15 impacts automakers, engine manufacturers, gasoline retailers and most importantly consumers, and I believe Congress needs to take more time to address these important safety concerns," said Rep. Gary Peters, D-Bloomfield Township.

The budget also includes $6 million for the Energy Department to administer the $25 billion auto loan retooling program. About $9.2 billion has awarded in loans to help automakers retool old factories to build more fuel efficient models. House Republicans had sought to cut $1.5 billion from the $7.5 billion that Congress approved in 2008 to subsidize the loans.

Many other start-ups and automakers - including Chrysler Group LLC - are awating loans from the program.

The spending does bar the EPA from enforcing a new law setting light bulb efficiency standards. They were written into law and signed by President George W. Bush in 2007.