Offshore drilling bill OK'd by House Democrats

But Republicans called the drilling measure a ruse to provide political cover to Democrats feeling pressure to support more drilling at a time of high gasoline prices.

"How much new drilling do we get out of this bill? It's zero. Just zero," declared House Republican leader John Boehner of Ohio. "It's a hoax on the American people. This is intended for one reason ... so the Democrats can say we voted on energy."

The bill would not share royalties from energy production with the adjacent states, which Republicans said would keep states from accepting any new drilling off their beaches. Republicans also cited Interior Department estimates that 88 percent of the 18 billion barrels of oil believed to be in waters now under drilling bans would remain off-limits because they are within the 50-mile protective coastal buffer.

The House-passed bill calls for rolling back nearly $18 billion in tax breaks over 10 years for the five largest oil companies and using the revenue for tax incentives to help commercialize alternative energy such as solar, wind and biomass, and programs that foster energy efficiency.

The bill also would require the president to make available oil from the government's Strategic Petroleum Reserve. Pelosi said such a move is needed to drive down gasoline prices, although oil prices have dropped dramatically in recent weeks and many energy experts believe gasoline prices will fall as well after refineries recover from Hurricane Ike.

Democrats added a provision at the last minute that makes it a federal crime for oil companies with federal leases to provide gifts to government employees, a response to a recent sex and drug scandal involving the federal office that oversees the offshore oil royalty program and energy company employees.

The House bill also would:

• Provide tax credits for wind and solar energy industries, the development of cellulose ethanol and other biofuels.
• Require utilities nationwide to generate 15 percent of their electricity from solar, wind or other alternative energy sources.
• Give tax breaks for new energy efficiency programs, including the use of improved building codes, and for companies that promote their employees' use of bicycles for commuting.

More from msnbc.com Thanksgiving is about odd family dynamics Elkhart Project: Money pours in, pet adoptions increase Swine flu fears for hajj pilgrims First Read: Pardon my turkey, and other trivia 570,000 pager messages from 9/11 released   Silver Lining: Tales of struggle and hope On Twitter: Breaking news updates | Weird and wild

MORE FROM CAPITOL HILL

Capitol Hill Section Front

Newsweek: Deconstructing Arkansas and Blanche Lincoln NYT: Health bill revives abortion groups Ill. Democrats: Keeping Obama Senate seat not easy For Reid, Dodd, clout cuts both ways Poll: Americans conflicted over health overhaul Schumer: Dems can go it alone on health care Senate health bill targets ‘Cadillac’ plans Text message exposed senator’s affair Senate Democrats at odds over health care bill Congress is losing its patience with the Fed Capitol Hill Section Front   Add Capitol Hill headlines to your news reader: