US vote on CO2 trading seen as likely

Washington (Platts Emissions Daily)--3Apr2006

While the US Senate is likely to vote on a greenhouse gas trading bill this
year, legislation will probably not be approved by Congress because the White
House does not support it, Jeff Bingaman, the ranking Democrat on the Senate
Energy and Natural Resources Committee, said Friday.

Bingaman, a proponent of a mandatory cap-and-trade program for GHGs, and
fellow New Mexican Pete Domenici, the Republican chairman of the energy
committe, are holding a conference Tuesday in Washington to discuss potential
carbon dioxide trading legislation. Such a bill may not be enacted until after
the next presidential election, however, said Bingaman, who spoke Friday at a
news conference hosted by King Publishing.

"I think this is an issue where the public is out ahead of the politicians,"
Bingaman said. "The administration's position has been a major impediment to
doing anything in Washington."

Bingaman tried to gain approval for a CO2 trading measure last year during
energy bill debate. The Senate rejected the provision, but passed a "Sense of
the Senate" resolution saying that mandatory market-based limits should be
passed.

Since that time, several companies have given serious consideration as to how
a climate change bill "ought to be structured," Bingaman said. He speculated
that companies are eyeing a federal plan over concern that they will be
subject to "a patchwork of different cap-and-trade" requirements.

Seven New England states are enacting the Regional Greenhouse Gas Initiative,
which requires power plants to cut emissions 10% below current levels by 2020.
California, Washington state and Oregon are considering programs similar to
RGGI.

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