Breakthrough on Energy Policy Possible

You may be hearing more soon about the "Gang of Ten." That's a group of five Republican and five Democratic Senators who have put together a bill aimed at ending the Congressional stalemate on energy policy. Here's a rough description:


"The compromise proposal -- formally the New Energy Reform Act of 2008 -- is a complicated piece of legislation, but involves three or four basic components:

-- Opens additional drilling areas in the Gulf of Mexico, and allows Virginia, North Carolina, South Carolina and Georgia to elect to permit drilling off their coasts. Existing bans on drilling off the West Coast, including in the ANWR, would be preserved.
-- Dedicates $20 billion to R&D on alternative fuels for motor vehicles.
-- Extends a series of tax credits and incentives, such as for the purchase of hybrid vehicles.
-- Funds the above -- at total cost of about $84 billion -- by closing tax loopholes for petroleum companies, in conjunction with licensing fees."

So far, Barack Obama has expressed lukewarm support for the bill; John McCain opposes it. Stay tuned for both the policy and political fallout from this significant new initiative.