WASHINGTON — Congressional Democrats and the Bush administration on Tuesday night were on the brink of an agreement on a taxpayer rescue of the American automobile industry, with a vote in the House expected as soon as Wednesday afternoon. þþBut with less than six weeks left in President Bush’s term, it was unclear if the White House would be able to generate Republican support for the proposal, which is crucial in the Senate where, for procedural reasons, the bill needs 60 votes to advance. þþA group of Republican senators likely to oppose the auto bailout plan scheduled a news conference for noon on Wednesday, raising the prospect of a legislative battle that could keep the Senate in session well into next week. þþRepublican aides said the White House chief of staff, Joshua B. Bolten, would make an unusual appearance on Wednesday at the weekly Senate Republican lunch to sell the auto rescue plan to reluctant legislators. þþThe rescue plan would extend $15 billion in emergency loans to General Motors and Chrysler, the two most imperiled automakers, and would subject them to far-reaching government oversight at the direction of a so-called car czar to be named by Mr. Bush. þþFord is not seeking short-term loans because it is not as bad off as the other two big automakers.þþBy Tuesday evening, White House and Democratic Congressional negotiators, meeting at the Capitol, had narrowed their differences to one major issue: a proposal to bar the automakers from fighting state laws that seek to cap greenhouse gas emissions.þþSenior Congressional aides said that one of the more complicated aspects of the talks related to Chrysler’s unusual corporate structure: 80 percent of the company is owned by Cerberus, a private equity firm, and 20 percent by Daimler. þþThe aides said that negotiators were near agreement on a plan to hold Cerberus liable, as Chrysler’s parent company, for any losses the government might face in connection with the emergency loans and to require the firm to make taxpayers whole. þþA senior administration official said that bill would set a firm deadline of March 31 for the car czar to certify that the automakers and their stakeholders, including creditors, labor unions and dealers, had agreed to carry out a long-term viability plan and that the bill would set out “a hard economic definition of what it means to be a viable firm.” þþThe official said that if there were no such agreement, the auto czar would be required to demand repayment of the administration rather than giving the czar discretion to call in the loan, which Democrats had initially proposed. The bill would also allow the auto czar to impose a viability plan, which could force a company into bankruptcy. þþ“There are a lot of people who are arguing the only way these firms will become viable is through Chapter 11,” the senior official said. “You have got a chance to negotiate, but if you don’t, the president’s designee must come forward with a plan that he would propose, including, potentially, Chapter 11 reorganization.” þþThe auto bailout legislation will give the government stock warrants in the automakers, allowing taxpayers to profit should share prices rise. The bill will also bar shareholder dividends, executive bonuses and “golden parachute” severance packages. þþTo address concerns raised by the White House on Monday, the bill will require the car czar to call in the emergency loans for repayment should the auto companies fail to carry out aggressive reorganization plans or meet other obligations in the law.þþCongressional Democrats also agreed to a White House request to raise to $100 million, from $25 million, the size of business transactions requiring the approval of the auto overseer. The administration said it did not want to micromanage the automakers. þþAides suggested that the House speaker, Nancy Pelosi, whose district is in California, where an emissions lawsuit is under way, might be willing to compromise on that point in exchange for White House assurances that Republican lawmakers would support the bill. þþBut it was unclear if the lame duck White House would have the leverage to cajole lawmakers into supporting the measure. þþRepublican support is particularly important in the Senate where the bill needs 60 votes to advance and where Democrats now hold a 50 to 49 majority, with one vacancy because of the resignation of President-elect Barack Mr. Obama as senator. þþSome top Republicans including Senator Richard C. Shelby of Alabama, the party’s senior member of the banking committee, say they will oppose the measure. And on Tuesday, Senator John Ensign, Republican of Nevada, said that he also object. þþThe majority leader, Senator Harry Reid of Nevada, said that lawmakers might need to work through the weekend to get the rescue plan approved. But he expressed resolve. þþ“There will be no stalling us from doing this,” Mr. Reid said on the Senate floor on Tuesday afternoon. “We are going to complete this legislation.” þþThe Democrats may face difficulties generating votes in their own caucus as well. There were 10 Democrats who voted against the $700 billion financial system bailout in October, some of whom could similarly oppose a taxpayer rescue of the auto companies. þþIn addition, Senator John Kerry, Democrat of Massachusetts and Senator Amy Klobuchar, Democrat of Minnesota, are scheduled to leave Washington on Wednesday for a trip overseas. þþMr. Reid said he would urge lawmakers in both parties to be available to vote on the auto rescue package. “I would suggest it’s not a very good vote to miss,” he said. “Maybe multiple votes.” þþMultiple procedural votes seemed increasingly likely given the Republican displeasure with the way the legislation has been handled. As of late Tuesday, rank-and-file lawmakers said they had yet to receive a final draft of the bill for their review. þþMr. Ensign, and other Republicans including Senators Tom Coburn of Oklahoma, Jim DeMint of South Carolina and David Vitter of Louisiana, who are all expected to oppose the auto bailout, scheduled a news conference for noon on Wednesday. þþThe Republican leader, Senator Mitch McConnell of Kentucky, has raised some concerns about the draft legislation, but has not indicated if he will support it. þþThe House majority leader, Representative Steny H. Hoyer, Democrat of Maryland, said that Mr. Bush and Mr. Obama could help build support. þþ“My premise is if we have the president, if we have the president-elect or his people and the leadership on both sides of the aisle say this is something we need to do, I think we can get the votes,” he said.þþReporting was contributed by David W. Chen from New York, Nick Bunkley and Bill Vlasic from Detroit, and Peter Baker and David Stout from Washington.þþ
Source: NY Times
