Detroit's automakers praised the Senate passage, which followed Wednesday's 370-58 vote by the U.S. House. 'Congress clearly recognizes the need to move forward at this critical time to make available this source of capital for automakers and suppliers,' General Motors Corp. spokesman Greg Martin said, adding that the loans 'will help speed the transition to cleaner, more fuel-efficient vehicles.' Automakers will get up to 25 years to repay the loans. Because they have sub-investment grade credit, they would save more than $100 million per $1 billion borrowed in lending costs. They could also ask the Energy Department to defer repayment for up to five years. Congress appropriated $7.5 billion to cover the costs of the loans, including the risk of default. 'This is an important first step to providing access to capital for important investments in the future at a time when the capital markets are distressed,' Ford Motor Co. said in a statement. In an interview Saturday, Michigan Sen. Carl Levin, D-Detroit, said the loans 'will speed the transition for the industry to more technologically advanced vehicles' and said it would provide both 'a financial and psychological boost' to struggling automakers, who are facing disastrous economic conditions. The $25 billion program was authorized by an energy bill passed in December 2007 but not funded by Congress. 'This is a smart investment which will speed the introduction of more fuel efficient vehicles, and also create tens of thousands of good-paying U.S. manufacturing jobs,' United Auto Workers President Ron Gettelfinger said in a statement Saturday evening. GM and Ford lost nearly $25 billion in the second quarter of the year, and along with Chrysler LLC are closing plants, shrinking their work force and slashing spending as the auto market is down 11 percent through August. The National Highway Traffic Safety Administration has estimated it will cost automakers $47 billion through 2015 to meet the first five years of fuel economy increases, starting with the 2011 model year. Levin vowed to begin work early next year on obtaining another $25 billion in loans for 2009 and 2010. But now lawmakers may have to push to get the money into automakers' hands. Energy Secretary Samuel Bodman wrote a letter Wednesday to two Michigan members of Congress warning that it could take 'six to 18 months or more' to approve funding and distribute loans to automakers, which brought angry retorts from a number of Michigan lawmakers. Levin said he expected it would take up to six months for automakers to see loans, but that he would work to push the Energy Department to speed up distribution of loans. 'Bureaucracies can be expedited,' he said, noting that the bill includes language that forces the department to have final regulations for overseeing the loans in place within 60 days of it becoming law. The bill also awarded the Energy Department $10 million to hire outside experts to speed the process. U.S. Rep John Dingell, D-Dearborn, sharply criticized the Energy Department's timetable, which brought a response from DOE spokeswoman Healy Baumgardner, who said the Energy Department 'rejects these wholly unfounded accusations' and accused Dingell, who is chairman of the House Energy and Commerce Committee, of making 'uniformed and inaccurate sound bites.' Michigan Sen. Debbie Stabenow, D-Lansing, said Saturday she had spoken to Sen. Majority Leader Harry Reid, D-Nev., and Jeff Bingaman, d-N.M., chairman of the Senate Energy Committee, and both vowed to work to ensure the loans are approved quickly. Stabenow said Congress must still approve a tax credit worth up to $7,500 for plug-in hybrid vehicles and more funding for battery research. 'Today's action is a critical first step,' she said. You can reach David Shepardson at (202) 662 - 8735 or dshepardsondteom.