Congress has approved the first increase in automobile fuel economy in 32 years.

The energy bill, already approved by the Senate, demands a 40 per cent improvement in fuel economy for cars and small trucks, including SUVs.

And in a dramatic shift to spur increased demand for non-fossil fuels, it also requires a six-fold increase in ethanol use to 136 billion litres a year by 2022.

New energy efficiency standards are also in store for an array of appliances, lighting and commercial and government buildings.

The legislation now goes to the White House and President George W. Bush has indicated he will sign it.