The US House of Representatives has passed a radical new energy bill, which calls for an increased use of renewable fuels and proposes reduce tax breaks to oil firms. The proposed new law details support for "clean" energy sources like biofuels, wind, solar and geothermal resources.

The proposed bill has also called for more stringent efficiency standards for lighting and electrical appliances.

The bill also calls for the withdrawal of around $16 billion in annual tax concessions long enjoyed by US oil industry majors such as Exxon-Mobil, Conoco and Chevron.

Another initiative on stricter fuel-efficiency standards for automobile manufacturers that has the US auto industry up in arms, is being resisted by manufacturers (See: US auto industry wants proposed fuel consumption standards diluted)

The oil industry has support from the Bush administration and President George Bush is opposed to the new bill, which has to be passed by the Senate before it becomes law.

The bill, if it is passed as it stands, will require all American power generation companies to generate 15 per cent of their energy from renewable sources by 2020.