Washington (Platts)--3Apr2009

The US Senate Thursday night approved its fiscal 2010 budget blueprint
after considering dozens of amendments and adopting language that will make it
harder to pass a climate change bill.

The non-binding resolution, which establishes spending and legislative
priorities for Congress, would authorize $3.5 trillion for programs across the
federal government. The measure was approved by a 55-43 vote, with no
Republican support. Indiana Democrat Evan Bayh broke ranks with his party to
oppose the resolution.

Following a two-week congressional recess, the Senate- and House-passed
budget resolutions will be negotiated and a final resolution must be passed by
both chambers. The president does not sign the annual budget resolution.

The measure contained no language to fast-track a carbon cap and trade
bill, and Democrats and Republicans overwhelming approved an amendment that
barred so-called budget reconciliation from being added to help a mandate pass
with only 51 votes, rather than the 60 usually needed for controversial
legislation.

The measure would create a provisional fund allowing revenue from a
carbon cap-and-trade bill to be used for renewable energy development. It also
authorizes $4.5 billion for federal programs related to energy, an amount
that matches the president's request for energy funding.

A summary provided by the panel said the budget invests in DOE's Energy
Efficiency and Renewable Energy program, low-carbon coal, energy efficiency
block grants, and continues funding for the DOE loan guarantee program for
advanced energy technologies.

--Jean Chemnick, jean_chemnick@platts.com