By Denise Ross

I’d call it the biggest news to come off of Capitol Hill all year, but it’s not getting a ton of attention in the press. A bipartisan group of senators - 5 Dems and 5 Republicans - have set forth a compromise energy policy. (Details on the jump.)

The New Energy Reform Act literally has something for everybody - something for everybody to love and to hate - from the greenest enviros to the multi-million-dollar-salaried oil exec. Of course, those on either extreme are focusing on what they hate. Sigh.

The oil industry is warning that revoking its tax breaks could slow its production of new energy supplies.

AND FROM THE OTHER CORNER:

“This is Exxon’s drilling agenda wrapped in a veneer of other energy policies,” said Anna Aurilio, federal legislative director of the U.S. Public Interest Research Group.

Meanwhile, there seems to be a lot of reporting on what is essentially a stunt by House Republicans, who seem to be struggling with the notion that they no longer run the place.

Reps. Tom Price (R-Ga.) and Mike Pence (R-Ind.) led a spontaneous revolt to protest the Democrats’ decision to adjourn the House for the five-week August recess without giving the minority party a chance to speak out on rising gas prices. Even after Democrats turned off the lights and microphones, and with TV cameras shut down, Republicans kept talking and chanting, “Drill, drill, drill!” …

Two dozen Republicans kicked off their second day of protests with an array of sometimes inartful, off-topic or histrionic floor speeches ranging in topic from John Quincy Adams’ views on slavery to a shout-out to Moses. …

House Republicans were vowing to continue their talkathon on the floor “as long as it takes,” claiming they would continue their protest indefinitely if Pelosi does not allow a vote soon.

This makes news when we have real leadership and a substantive proposal coming out of the Senate. Double sigh.

Perhaps of most interest here in SD is that our own John Thune and a few other senators from ethanol states have shored up the standing of ethanol and other biofuels in the bill.

And it’s still just a bill, younger than Brad and Angelina’s twins. The Gang of 10 hopes to build support for their proposal during the August recess, then get a vote on Capitol Hill in September.

(Hey, Gang of 10, how about a website? That would make it easier to promote your cause, and it would make life easier on all us bloggers.)

In lieu of an official website, here’s my little summary of what’s been reported and released so far, followed by the full official press release from Sen. Thune:

• It includes $2.5 billion in research, design and development on next generation biofuels (ethanol and bio-diesel) and infrastructure (pipelines and fueling stations).
• There would be tax incentives for the installation of alternative fueling stations, pipelines and other infrastructure.
• It would expand transmission capacity for power from renewable sources (wind, solar).
• It would give a tax credit for carbon dioxide sequestration when used in enhanced oil recovery, which would increase production from existing oil wells while reducing greenhouse gas emissions.
• It would provide grants and loan guarantees to develop coal-to-liquid fuel plants with carbon capture capability. Plants would be required to have lifecycle greenhouse gas emissions below those of the petroleum fuels they would replace.
• While the proposal would allow some off-shore oil drilling, in Virginia, the Carolinas, Georgia and the Gulf of Mexico, it would keep the ban on drilling in other parts of the United States and does not address the drilling ban in the Arctic National Wildlife Refuge in Alaska.
• Converting the nation to vehicles that run on something other than gasoline is a major component of the plan, which would offer $7.5 billion to develop such vehicles, another $7.5 billion to help U.S. car companies make those vehicles and a $7,5000 tax credit for people who buy those vehicles. The gang has set a goal of converting 85 percent of the nation’s auto fleet away from gasoline within 20 years.
• The plan’s $84 billion price tag would be paid for with by “closing loopholes,” also known as ending tax breaks, and “other revenues.” That should prove interesting as more details emerge. About a third of the price tag is covered by ending tax breaks for oil companies, increasing their fees when they explore and drill on federal land and by giving some of their tax breaks to developers of renewable energy. (Oil execs, if you give me some of your money, I will use some of the dollar bills to help wipe away your tears.)

 Here’s Thune’s info:

New Energy Reform Act of 2008

Roadmap to a Secure Energy Future

Overview
Knowing that the rising cost of energy is the number one issue facing Americans today, ten Senators from both sides of the aisle have come together to present a proposal to reduce gas prices, lessen our dependence on foreign oil, and strengthen our economy. The New ERA legislation represents a true compromise, incorporating common sense ideas.

The purpose of the legislation is to transition our economy - particularly the surface transportation sector - to run off alternative fuels other than gasoline and diesel. The legislation dedicates at least $20 billion in the next ten years to this important endeavor.

To ease gas prices in the interim, the New Era bill includes significant conservation provisions and targeted, responsible measures to increase our domestic production of traditional fuel sources. Any new domestically produced resources must stay in the United States. The bill will also establish a National Commission on Comprehensive Energy Policy to identify critical “inhibitors and prohibiters” to the goals established in the bill and to make recommendations to Congress on policies to overcome these obstacles as well as to address related matters such as carbon capture and storage, nuclear and renewable energy, and the need for upgrading and transitioning the national grid and other energy infrastructure.

The New Era bill contains three main components:

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