"We're going to write a bill to set reasonable goals over reasonable timeframes that will benefit both our environment and our economy," Majority Leader Harry Reid said, following a closed-door meeting of Democratic senators. "We're going to write a bill that can pass the Senate."

Reid, a Nevada Democrat, called the caucus to see how the Senate can clear a path for energy and climate legislation -- a White House priority -- in the dwindling weeks of the 111th Congress.

President Barack Obama plans to convene a bipartisan group of senators to strategize on climate and energy policy next week. Passage of such a controversial bill would require 60 votes and the support of some Republicans.

Emerging from the hour-long meeting in the Capitol, Reid described the caucus as "inspirational" where members uniformly supported moving an energy bill to create "clean energy" jobs, reduce pollution and bolster national security by reducing US spending on foreign oil.

Senators John Kerry, Democrat-Massachusetts, and Independent Joe Lieberman of Connecticut joined Reid in speaking with reporters and echoed those sentiments.

"I have more confidence than I've had in a long time that we're going to be able to pass a strong, comprehensive, clean energy bill that makes polluters pay," Lieberman said. "If this caucus gets together and presents such a proposal on the floor in July, we're going to challenge some of our Republican colleagues to do what I know they know is the right and necessary thing for America and we're going to get 60 votes or more for a better, safer American future."

Kerry and Lieberman have proposed a broad climate change bill that creates a carbon cap-and-trade system for the power sector in 2013, brings large industrials into the plan in 2016 and sets a fee for oil producers and refiners linked to the emissions allowance market.

An idea under discussion by several senators would involve limiting the price on carbon to the electric power sector but whether that idea is gaining traction remains to be seen.

When asked about an electricity-only carbon price, Kerry said specifics of legislation were not discussed. "My sense is that each of senators made their statements. Harry Reid is going to take this now and put the pieces together," Kerry said. "You'll see in the final product we come out with how each of these principles is embraced."

A major driver cited by the senators for cohesion on a bill is the fact that the US Environmental Protection Agency plans to begin regulating industries for carbon dioxide emissions early next year using the Clean Air Act, a move that is expected to fail to give businesses the certainty they need for investments and growth. As a result, Kerry noted many companies have "come to the table" to support action by Congress.

"We have gas and coal and nuclear and renewable and alternative and energy efficiency and many others, all of whom believe this is the moment to create these jobs in our country and secure our energy future," he said.

"We're convinced that we can do it."

--Cathy Cash, cathy_cash@platts.com