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HouseCommittee passes climate bill

On a 33-to-25 vote, the House Energy and Commerce Committee approved the climate change bill on Thursday. Althoughweakened by some compromises, the bill is still seen as a major reform in U.S. energy policy with a goal of reducing greenhouse gas emission 17 percent by 2020 and 83 percent by 2050.

One of the compromises in the bill involves the carbon cap-and-trade system. Initially,President Obama wanted the so-called pollution credits to be auctioned off but the Committee has 85 percent of those credits being given away to utilities, oil refineries, trade-sensitive businesses and the auto industry. The other 15 percent will be auctioned at a minimum initial price of $10 perton. If the price reaches $28 in the first year, more permits would be issued.

Republicans tried unsuccessfully to add amendments which would negate the bill if unemployment reached a certain level, if electricity prices went too high or if China and India did not reducetheir emissions.

The bill does face more challenges, House Ag Committee Chair Collin Peterson says he wants to take up the bill in his committee hoping to get rid of the provision which ties the carbon footprint of ethanol to clearing land in other countries.

While groups like the American Farm Bureau and the U.S. Chamber of Commerce oppose the bill, companies like Deere & Company and U.S. Steel support it saying carbon controls are inevitable and they want to know what the rules are.