Washington (Platts)--10Jul2007

The chairman of the US Senate Energy and Natural Resources Committee will
introduce on Wednesday legislation that would take an economy-wide,
market-based approach to capping US emissions of greenhouse gases.

     The bill from New Mexico Democrat Jeff Bingaman will be co-sponsored by
Pennsylvania Republican Senator Arlen Specter, Bingaman's staff said Tuesday.

     Bingaman and Specter have been circulating draft legislation to address
global warming since the beginning of the year, but the final bill is expected
to take a stronger approach to greenhouse gas emissions control than the
earlier versions, sources said.

     Bingaman's early draft bill was based largely on National Commission on
Energy Policy's recommendations for a greenhouse gas emissions cap and an
emissions allowance trading system. The draft proposed to limit greenhouse gas
intensity rather than make actual cuts in emissions and provided a "safety
valve" cap of $7/ton on carbon allowances. 

     The NCEP, a coalition of academic, industry, consumer and environmental
experts, issued stronger recommendations in April and sources said they expect
the Bingaman-Specter bill to reflect those changes, including a safety valve
price of at least $10/ton of carbon equivalent and actual cuts in greenhouse
gas emissions of 15% from current levels by 2030. 

     Any climate legislation would go before the US Senate Environment and
Public Works Committee, which is preparing its own comprehensive cap-and-trade
bill under an alliance between Senators Joseph Lieberman, a Connecticut
Independent, and John Warner, a Virginia Republican.

		--Cathy Cash, cathy_cash@platts.com