Washington (Platts)--23May2008

Landmark legislation that would cut US greenhouse gas emissions by about
70% by 2050 is slated for a vote June 2 in the US Senate, where its chief
sponsor plans to offer a package of sweeteners -- "cost-containment" measures
and nearly $7 trillion in transition incentives -- in an effort to persuade
lawmakers to support the controversial measure.

Senate Majority Leader Harry Reid, a Nevada Democrat, has scheduled a
vote for 5:30 pm June 2, the first session after the week-long recess for
Memorial Day, on a motion to proceed with the bill (S. 3036).

Whether the additions to the legislation will be enough to conquer any
filibuster attempt remains to be seen.

To avoid a filibuster, Senate Environment and Public Works Committee
Chairman Barbara Boxer, a California Democrat, will need to capture 60 votes
on the motion to proceed with debate.

Oklahoma Republican Jim Inhofe, who opposes the bill, said he believes
Boxer has the votes necessary to bring the legislation up for debate.
But Inhofe believes the bill will fail when its potential costs to
taxpayers are exposed, his spokesman Matt Dempsey said.

Inhofe could "very well could vote in favor [of the motion to proceed]
because he believes they should have that debate," Dempsey said.

Boxer earlier this week introduced her long-awaited substitute to the GHG
cap-and-trade bill drafted by committee members Independent Joe Lieberman of
Connecticut and Virginia Republican John Warner.

The measure would mandate annual GHG emissions reductions across about
85% of the economy -- coal-fired electric power plants, natural gas
processing, transportation fuels and large industrials. Starting in 2012,
industry would be required to cut emissions 2% below 2005 levels and the cap
would rise incrementally rise to 19% below 2005 levels by 2020 and 71% below
2005 levels by 2050.

To aid compliance with the cap, the bill would create an emissions
trading program in which covered industries can swap GHG emissions allowances.
Emitters can also pursue domestic or international offsets, such as
forestation projects, to help meet 15% of their required emission reductions.

--Cathy Cash, cathy_cash@platts.com