Senator Joseph Lieberman, Independent-Connecticut, said Sunday on CNN that he would be open to a bill that caps emissions from electrical utilities only, which would be a departure from the draft he co-wrote with Senator John Kerry, Democrat-Massachusetts, and unveiled last month. Kerry-Lieberman would cap emissions from electrical utilities, manufacturing and transportation, though it treats each sector slightly differently.

"Yes, I would like to look at that," said Lieberman, when asked if he would consider the utility-only approach.

Lieberman echoed a statement from White House Chief of Staff Rahm Emanuel, who Friday was quoted in The Wall Street Journal saying President Barack Obama would consider a range of ideas on energy and climate policy when he meets with senators this Wednesday at the White House.

"The idea of a 'utilities only' [approach] will also be welcomed," Emanuel said in the WSJ interview.

Lieberman and the White House have advocated a comprehensive climate change bill in the past, like the one (H.R. 2454) that passed the House of Representatives last year. It has become increasingly obvious, however, that such a bill is unlikely to pass the Senate this year. Senate rules require a 60-vote majority to pass controversial legislation, and none of the body's 41 Republicans have said they will support Kerry-Lieberman. The utility-only approach may have a hope of passing if Republicans like Tennessee Republican Lamar Alexander support it, as they have in the past.

Still, curbing emissions from the electricity sector only may not be supported enthusiastically by environmentalists, who warn that the smaller allowance market will make it harder to generate revenue for international deforestation programs and other expenditures that will help curb global carbon emissions. --Jean Chemnick, jean_chemnick@platts.com