Democratic negotiators say they have worked out the major kinks in a global warming bill, but it is not certain to clear the House Energy and Commerce Committee by Memorial Day, as Chairman Henry Waxman, D-Calif., has vowed.
Waxman, who will begin Monday the process of making final modifications to the bill before a committee vote, cut deals with members and lobbyists for electricity producers, manufacturers and refineries to give them billions of dollars in free pollution permits over the next decade in order to help ease their transition into a “cap and trade” system.
Under the system, the government would put a limits on carbon dioxide and other “greenhouse gas” emissions, and companies that produced more than allowed would have to purchase pollution rights. Waxman’s free credits would allow excess emissions for favored companies without a cost.
The plan initially faced seemingly insurmountable opposition because it would cause energy bills to skyrocket as power companiespassed along costs to consumers and already struggling manufacturers laid off workers.
In order to win support from Democrats, the bill has been written to allow the government to give away many permits, 35 percent of them to the power companies and 15 percent to manufacturing and steel plants. Just 2 percent of available permits would go to oil refineries.
“Our committee has more than adequately addressed the concerns of the industries,” said Rep. Mike Doyle, D-Pa.
Waxman picked up a key supporter late in the week when Rep. Rick Boucher, D-Va., agreed to vote for the bill in committee. Boucher told The Examiner that this did not guarantee his support for floor passage, however.
“I intend to seek continued improvements,” Boucher said, adding that he believes Waxman will have enough votes to move the bill out of committee. The panel is made up of 36 Democrats and 23 Republicans. No one from the GOP is expected to support the measure.
Waxman was unable to pass the bill out of a smaller global warming subcommittee this month because many of the members of that panel are from states that rely on coal-fired plants for electricity and manufacturing plants for jobs. Waxman opted to bypass the subcommittee.
One of the holdouts was Rep. Gene Green, D-Texas, who told Waxman he wanted 5 percent of the permits to be designated for oil and gas production, 3 percent more than Waxman has allotted. Green said he would fight for more allowances but was satisfied for now with the lower number.
In the Senate, very little is happening with energy reform.
Senate Majority Leader Harry Reid, D-Nev., said that was because so far there is not enough support.
“The House has the same problems we have in the Senate,” Reid said. “We are going to see what the House can do. If they can do it, we can do it.”
