Washington (Platts)--12Mar2009

US Senate Majority Leader Harry Reid on Thursday said he hopes to move
through the Senate by late summer a broad bill that would establish a national
CO2 cap-and-trade program, expand the electricity transmission grid and
require electric utilities to meet a fixed percentage of their demand with
renewable energy.

Leaders in the US House of Representatives have already said they hope to
pass as early as May legislation containing the three elements and Reid said
"that is probably where we are heading." The Nevada Democrat spoke with
reporters after he testified before the Senate Energy and Natural Resources
Committee on a bill he introduced that would give the federal government
authority to approve transmission lines that carry renewable energy.

Asked whether he believes such a bill could win the 60 Senate votes
necessary to cut off a filibuster, Reid said he is optimistic, adding that
global warming, transmission and renewable energy are "bipartisan issues."

Reid also said he has not ruled out attaching the bill to a budget
reconciliation measure, which under Senate rules requires only a simple
majority to pass. "I love 51 compared to 60," he said.

Any effort to do that, however, would likely run into strong opposition
from moderate Senate Democrats, whose support Reid needs to pass the bill.

--Cathy Cash, cathy_cash@platts.com