Washington (Platts)--11Mar2008

Two prominent Democrats in the US House of Representatives introduced
legislation Tuesday that would stop coal-fired power plants from being built
unless they are equipped with carbon capture and storage.

Representative Henry Waxman of California, chairman of the House
Oversight and Government Reform Committee, joined with Representative Ed
Markey of Massachusetts, who heads the House Select Committee on Energy
Independence and Global Warming.

Before a greenhouse gas emission cap takes place, the bill would bar the
US Environmental Protection Agency or state regulators from granting operating
licenses for coal-fired power plants unless they include CCS. Once a federal
emissions cap is implemented, any plants without technology for permanent CCS
could not get free or discounted emissions allowances under an economy-wide
cap-and-trade program.

"It's important for ratepayers and regulators to understand the financial
risks if their power company wants to build a new uncontrolled coal-fired
power plant," Waxman said in a statement. "Those plants will be a lot more
expensive to operate when global warming pollution is regulated. Ratepayers
need to make sure they won't be stuck with the bill."

The committee chairmen are vocal advocates of mandatory cuts to CO2
emissions. They also are two of House Speaker Nancy Pelosi's most trusted
lieutenants in Congress.

--Alexander Duncan, alexander_duncan@platts.com