Senators unveil bipartisan energy plan

Democrats have tried to repeal industry tax breaks in the past but have been thwarted by a GOP-led Senate filibuster.

But a number of Republicans are finding it hard to defend the tax breaks while oil companies record high profits.

An estimated $30 billion that would be paid by the oil companies over 10 years would help fund initiatives such as $7.5 billion to help U.S. automakers expand the production of alternative-fuel vehicles. Funding also would be provided for tax credits to encourage consumers to buy more fuel-efficient cars and for extending tax credits to promote energy efficiency and cleaner energy sources, such as sun and wind power.

In a statement, Sen. Barack Obama of Illinois, the likely Democratic presidential nominee, welcomed the proposal, saying it included measures he had advocated such as repealing oil industry tax breaks. But he said he remained skeptical that new offshore drilling "would bring down gas prices in the short term or significantly reduce our oil dependence in the long term."

And in an interview with the Palm Beach Post in Florida, Obama said he might support limited additional offshore drilling as part of a comprehensive policy to promote fuel-efficient autos and alternate sources of energy.

Sen. John McCain of Arizona, the presumptive Republican presidential nominee, has called for lifting the offshore drilling ban. In a statement, his campaign said the country needs an " 'all of the above' approach" and chided Obama for opposing expansion of offshore drilling.

White House Press Secretary Dana Perino said the Bush administration would consider the legislation.

"We would need to see a bill that would increase the supply here in our own country, across the board, in a comprehensive way," Perino said, adding that "alternatives and renewable energies" are needed too.

Sen. Saxby Chambliss (R-Ga.) initiated the bipartisan talks several weeks ago, approaching Conrad after another day of partisan warfare in the Senate over energy policy.

Chambliss acknowledged that the bipartisan talks irked party leaders. "The fact that they're uncomfortable means we're doing the right thing," he said.

But though the proposed compromise enjoys bipartisan support, the five Democrats who endorsed it hail from states that voted for Bush in 2004.

Other senators putting forth the plan are Democrats Mary L. Landrieu of Louisiana, Blanche Lincoln and Mark Pryor of Arkansas and Ben Nelson of Nebraska; and Republicans Johnny Isakson of Georgia, Lindsey Graham of South Carolina, Bob Corker of Tennessee and John Thune of South Dakota.

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richard.simon@latimes.com