The Consumer-First Energy Act of 2008 would hold oil companies accountable for their pricing and "force them to invest in renewable energy or pay a price for refusing to do so," Senate Majority Leader Harry Reid, D-Nev., said during a news conference with other Senate leaders.

Among other things, the measure would roll back tax breaks for oil companies and invest the money in renewable energy development and energy efficiency technology. It also would create a windfall profit tax on oil companies failing to invest in increased capacity and renewable energy resources.

"It's time for Big Oil to pay its fair share so Americans can see a little relief," said Sen. Charles Schumer, D-N.Y. "The windfall profits tax will do just that, and help spur innovation in the process."

The measure also would end government purchases of oil for the Strategic Petroleum Reserve, potentially reducing the price of gasoline up to 5 cents per gallon, Reid said.

House Speaker Nancy Pelosi, D-Calif., praised the Senate action, adding several measures under consideration have been passed by the House.