Bush Tailors State of the Union Speech

President Bush, right, meets with U.N. Secretary-General Ban Ki-moon, not shown, in the Oval Office of the White House in Washington, Tuesday, Jan. 16, 2007. (AP Photo/Gerald Herbert) (Gerald Herbert - AP)

According to two auto industry officials, the president may seek the power to raise fuel economy standards for passenger cars. The two officials, who spoke only condition of anonymity because they did not want to pre-empt Bush's address, said it probably would be part of a plan to offer more incentives for increasing alternative fuels and accelerating the number of vehicles running on alternative fuel.

Bush asked Congress for the authority to change fuel economy standards for passenger cars last year; the measure failed in the House. The administration has opposed simply imposing tougher mileage requirements without changing the system because of safety concerns and interest in providing flexibility to struggling domestic automakers.

The administration released new fuel economy rules last year for sport utility vehicles, pickups and vans based on a vehicle's size. Automakers were supportive of the changes, developed after months of study. Environmentalists said it was insufficient because it required only nominal increases in the standards.

On health care, the president is considering a change that would extend tax breaks to people who purchase health coverage on their own _ not just those who receive tax-free benefits from their employers. He also is considering capping the amount of money that employers can contribute tax free toward their workers' health insurance, according to officials familiar with the policy. They spoke on the condition of anonymity because it had not yet been announced.

The president also is expected to continue promoting health savings accounts, according to Roy Ramthun, a former economic adviser to the president.

Such accounts are available to people who buy insurance policies with high deductibles, meaning consumers are responsible for more of the initial costs when they see a doctor or a dentist. The insurance policies do not cost as much because of the high deductible, yet they do provide protection in the event of a major injury or illness.

Ramthun said Congress agreed with some of the president's request last year to raise the contribution limits for the accounts. Congress also agreed to let employers put more money into the accounts of low-wage workers, he said.

Bush last year urged higher contribution limits and proposed letting employers contribute extra amounts for chronically ill workers. Ramthun said he believes the president will repeat those calls this year.

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Associated Press writers Ken Thomas, Ben Feller and Kevin Freking contributed to this report.