Washington (Platts)--3Jun2008

US Senator Barbara Boxer, chief sponsor of landmark climate change
legislation, said Tuesday she hopes to close debate on the bill in the US
Senate early Wednesday and proceed with amendments, but she acknowledged she
may lack the votes to do so.

The Senate voted 74-14 Monday to go forward with debate on the
controversial bill (S. 3036). Many of its opponents joined the majority in an
effort to discuss their criticisms. Senate Republicans blocked bill proponents
from proceeding to any amendments without first allowing 30 hours of debate on
the underlying bill.

The clock on that debate runs out at midnight, Boxer said, and she plans
to pursue another vote to begin the amendment process.

"The Republicans are essentially filibustering us right now," said Boxer,
a California Democrat who chairs the Senate Environment and Public Works
Committee. The legislation would need 60 votes to end a filibuster.

"Right now I don't see 60" votes to proceed to amendments on the bill,
Boxer said at a news conference.

Republicans arguing against the bill say it would raise the cost of
gasoline, ship jobs overseas and boost consumers' power bills.

"I think for us to spend 30 hours talking about that so that all Senators
are fully aware of what this bill says prior to voting on amendments is most
appropriate," Tennessee Republican Bob Corker said on the floor Monday.

President Bush has issued a veto threat against the legislation, saying
it would cost the US economy $6 trillion.

Boxer said the bill, instead, provides $800 billion in tax relief, is
deficit neutral and provides hundreds of bills for effected industries to
transition to a low-carbon economy. The value of the awarded tradable
allowances and the proceeds of the auctions are estimated by Boxer at $6.7
trillion through 2050.

Under the legislation, the coal-burning power plants and factories,
natural gas processors and importers, petroleum refiners and importers and
"producers of high global warming potential gases" must reduce their carbon
emissions starting in 2012 by about 2% a year. Reductions would reach 19% by
2020 and ultimately a 71% cut by 2050.

The bill creates an emissions allowance market where some permits are
awarded and others auctioned to prod emitters to comply with an incrementally
tightening carbon cap.

--Cathy Cash, cathy_cash@platts.com