Instead of setting GREP_OPTIONS in your dotfiles, I recommend setting an alias 
in your ~/.bashrc:
  alias grep='grep -nHI --exclude=\*.svn-base'
since aliases do not propagate into other scripts.

A patch to sanitize GREP_OPTIONS appeared a little while ago on the upstream 
mailing list, but so far it has not been committed:
  http://article.gmane.org/gmane.comp.version-control.git/127980
If you still think this is a bug, I recommend following up with upstream.

-- 
GREP_OPTIONS variable hinders interactive git-rebase functionality
https://bugs.launchpad.net/bugs/398393
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