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US Senate climate bill details still unfinished

SENATORS negotiating a bill to address global warming fears and encourage the use of more alternative energy in the United States struggled over details yesterday as lawmakers approached a two-week break without a full legislative proposal in hand.

"We have a lot of work to do in the next 48 hours," Senator John Kerry told reporters shortly after he briefed a group of about 20 senators.

The Democrat was referring to the congressional recess that begins at the end of the week. Kerry and other senators working on a climate change bill hope to make as much progress as possible this week so that aides can work over the recess drafting legislation.

The House of Representatives approved a bill last June to mandate reductions for the first time in emissions of carbon dioxide and other greenhouse gases from utilities, factories and refineries. But the effort has been hung up in the Senate.

One of the initiatives being discussed in a compromise Senate bill is an expansion of offshore oil drilling -- an effort to help win some Republican support for a climate control bill and help reduce US reliance on foreign oil.

Senator Barbara Boxer left the briefing with Kerry telling reporters the compromise bill would "give a lot of power to the states" to object to offshore drilling plans in their coastal waters. Boxer said she supported expanded offshore drilling in the 68 million acres (28 million hectares) where there are no environmental concerns.

More Senate consultations with industry on the overall bill are set for Thursday, sources said.

Kerry, Republican Senator Lindsey Graham and independent Senator Joseph Lieberman may soon settle on enough details to submit information to the Congressional Budget Office and the Environmental Protection Agency to begin analyzing the economic impact.

"I don't know about this week, end of the week, next week," Kerry said.

EMISSIONS TARGET

The bill Kerry hopes to pass would commit the United States to a 17 percent reduction in carbon pollution by 2020, from 2005 levels. If such a bill is debated by the Senate this year -- and there are strong doubts -- some senators likely would try to reduce the 17 percent figure.

In international global warming negotiations, there are fears even a 17 percent target by the United States, the world's second largest polluter behind China, would not be enough to keep the planet's temperature from climbing to dangerous levels.

Senator Carl Levin told reporters he had not yet heard from Kerry about concerns over how carbon pollution permits would be allocated to various electric power utilities.

Under the bill being developed by Kerry, Graham and Lieberman, utilities, beginning in 2012, would be placed under a cap-and-trade program for reducing emissions. Their pollution limits would be capped at declining levels over the next 40 years and pollution permits could be traded in a new market.

Manufacturers might be phased into such a program starting in 2016, while the oil industry is pushing for a different pollution-reduction approach that likely would include a new carbon tax instead of cap and trade.

The climate bill faces several problems, including fears it would raise consumer prices at a time of economic uncertainty and with many Democrats facing tough races in November's congressional elections.

Some lawmakers, such as Senator John McCain, say the new healthcare reform law passed without any Republican support will spoil chances for any other big bills this year.

Environmental groups were still hopeful for a breakthrough on a climate bill, which would need votes from at least a handful of Republicans.

Eric Haxthausen, director of climate policy for the Nature Conservancy, said passage of healthcare reform showed the "power of the president when the president is engaged" and added that "is helpful for the climate effort," which Obama supports.

 

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