The energy bill that was signed into law in December by President Bush included a provision to provide $25 billion in direct loans to automakers, but the bill didn't allocate any funding. It would cost $3.75 billion to guarantee that money. Critics have called the plan a bailout. Detroit's automakers, however, and the United Auto Workers argue a $50 billion package may be necessary, which would cost $7.5 billion to guarantee. The direct loans would give Detroit's automakers, who all have sub-investment grade credit ratings, the lowest available interest rates and save them more than $100 million per $1 billion borrowed. But there are hurdles. The Energy Department must write the rules for awarding the money, which could take months -- or years. A 2005 bill that allocated $2 billion in loan guarantees for other projects still hasn't been finalized. Questions remain also as to what collateral the automakers would put up to qualify for the loans. Automakers could use the money to retool plants to build advanced technology vehicles that were at least 20 percent more fuel-efficient than the minimum required. They could also use some money toward engineering costs related to retooling and designing advanced technology vehicles like plug-in hybrids and others. Barack Obama, the Democratic presidential nominee, has endorsed the $50 billion package; his Republican rival John McCain endorsed the $25 billion package. Obama is running advertisements tweaking McCain's support of the smaller package. Michigan is an important state in the presidential election, with first lady Laura Bush telling Michigan delegates Tuesday that she thinks 'Michigan can really be in play this time.' Michigan hasn't voted for a Republican for president since 1988. Last week, Rep. Joe Knollenberg, R-Bloomfield Township, spoke with President Bush's top economic adviser, Keith Hennessey, who is director of the National Economic Council, urging the administration to support a direct loan package, said Knollenberg's spokesman, Nate Bailey. Knollenberg also has spoken with U.S. Transportation Secretary Mary Peters. Last week, Michigan members of Congress discussed the prospects for getting the proposal through Congress in September and members of both parties are reaching out to cabinet members. Auto lobbyists were in Denver last week pushing for support for the program at the Democratic National Convention. They are at the Republican National Convention in St. Paul this week.