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WASHINGTON -- President Bush called Monday night for more federal research into advanced batteries and renewable fuels to power " the cars and trucks of the future."

The line, in Bush's seventh and final State of the Union address, was a small echo of the president's pledge last year to reduce oil consumption 20 percent in 10 years.

The pledge helped set the stage for congressional approval of a landmark new energy law last month. The law raises fuel economy standards 40 percent by 2020 and dramatically increases the amount of alternative fuels to be produced by 2022. In his 2003 speech Bush vowed to put the United States on a path to convert to hydrogen as the main vehicle fuel.

His far more modest reference this year to batteries and alternative fuels was not the only matter of interest to the automobile industry.

Bush also asked Congress to make permanent tax cuts enacted in his first term.

They include a phase-out of the estate tax by 2010, a top issue for automobile dealers.

If a permanent repeal, or compromise, is not enacted before 2011, the estate tax comes back in full force.

Bush also asked Congress to approve free trade agreements, including one negotiated with South Korea. It is popular with import-brand automakers and dealers, eager for more tariff-free products to sell.

Despite his past resistance, Bush endorsed a new international agreement to " slow, stop and eventually reverse" the growth of greenhouse gases in the atmosphere – provided developing countries, such as China and India, are included.

Many observers have said that little will be accomplished during Bush's final year in office – with hot contests in both parties to find his successor and with most members of Congress also seeking re-election.

But Bush at the outset Monday night challenged Democrats and Republicans to show Americans that they can " compete for votes and cooperate for results at the same time."