As the next phase of the ongoing Washington battle over Corporate Average Fuel Economy (CAFE) standards heats up, the White House has threated to veto the legislation currently pending in the U.S House of Representatives.

The bill, laboriously worked out by Democrats in Congress, would represent the first increase in CAFE standards in 30 years, pushing fuel efficiency requirements up 40 percent from the current levels to 35 miles per gallon by the year 2020.

The portion of the proposed legislation to which the White House objects is apparently a provision calling for utilities to get 15 percent of their power output from renewable sources by the target date as well as increased taxes for both oil and natural gas companies.

Although the White House has come out in favor of higher fuel standards and a greater reliance on alternative fuels, the addition of utility requirements and additional taxes "may . . . produce a bill the President cannot sign," according to a letter written by Allan Hubbard, White House economic adviser to Speaker of the House Nancy Pelosi.

Since a vote on the measure in the House of Representatives may occur this week, the potential showdown could come to a head quickly, potentially endangering Pelosi's desire to enact legislation that would constitute a "Christmas present" for the American public.