The latest proposal to aid automakers is the most significant concrete sign that after more than a year of debate, Congress may finally be ready to spend a significant amount of money to help automakers retool and make advanced vehicles a reality -- especially in light of the Big Three's mounting financial woes.

 

But any financial help would most likely have to wait until a new president is elected. Congress is nearly out of time to do much more before they adjourn to go home and campaign.

 

Among the program's key components:

 

• $7.5 billion for research and development to overcome major technological barriers to developing alternative fuel vehicles, such as those what could operate on advanced batteries.

 

• $7.5 billion to help U.S. automakers and parts makers 're-tool and re-equip to become the world leader in making alternative fuel vehicles.'

 

• Offer revised hybrid tax credits of up to $7,500 per vehicle to encourage Americans to purchase advanced alternative fuel vehicles (those that run primarily on non-petroleum fuels); there would be no cap on the number of vehicles eligible by manufacturer. And up to $2,500 in tax credits to consumers who retrofit existing vehicles with advanced alternative fuel engines.

 

• Extending and expanding the $2,500 tax credit for hybrid electric vehicles; some popular hybrids, including the Toyota Prius, no longer qualify for federal tax credits.

 

• $500 million for research and development of new materials and other innovations to improve vehicle fuel efficiency and $2.5 billion to research the next-generation biofuels, such as cellulosic ethanol, and the necessary infrastructure.

 

• Tax incentives for the installation of alternative fueling stations, pipelines and other infrastructure. One major hurdle for wider use of E85 ethanol has been a lack of gas pumps that sell it and the fact that it must be shipped by truck or rail, rather than through pipelines.

 

The group of senators pushing the energy compromise includes: Saxby Chambliss, R-Ga., John Thune R-S.D., Lindsey Graham, R-S.C., Blanche Lincoln, D-Ark., Mary Landrieu D-La., Johnny Isakson, R-Ga., Bob Corker, R-Tenn., Mark Pryor, D-Ark., and Ben Nelson, D-Neb.

 

Sen. Barack Obama, the likely Democratic presidential candidate, praised the effort, while the White House was noncommittal.

 

'We will take a look at it and see if there are aspects of it that we could embrace. I'm sure there are some things that are in line with what the President would like to see,' spokeswoman Dana Perino said.

 

Michigan Democrats on Friday said they sent a letter to congressional leaders, urging more help for the embattled domestic auto industry.

 

Their plea came on the same day General Motors Corp. reported a staggering $15.5 billion second-quarter loss.

 

Michigan congressional staff members were in talks last week to convince the entire delegation to sign the letter.

 

Michigan's House Republicans, however, have balked at signing because of the inclusion of a call for more health care funding, something they said has nothing to do with the auto industry.

 

The Michigan Democrats want a series of provisions to aid both Detroit's Big Three automakers and the state's growing unemployed population.

 

The letter notes that the Wolverine State has the nation's highest unemployment rate at 8.5 percent.