UPDATE 3-House Democrats retool U.S. climate bill

* Democrats propose additional breaks for industry

* Waxman predicts committee approval next week

* Republicans offer energy alternatives (Adds White House comment in paragraphs 3-4)

By Richard Cowan

WASHINGTON, May 14 (Reuters) - Democrats in the U.S. House of Representatives on Thursday said they were working out final details of a climate change bill, as they announced new breaks for industry that they said would also minimize the potential impact on consumers' energy bills.

"We have reached agreement on most key matters," said Representative Rick Boucher, who represents the coal-producing state of Virginia.

The White House was upbeat on prospects for the environmental bill being approved by the House Energy and Commerce Committee, as well as healthcare reform efforts that panel also wants to advance.

"I think there's still a lot of reason to believe that we can get both done," said White House spokesman Robert Gibbs.

For months, Democrats on the Energy and Commerce Committee have been in negotiations with themselves as Republicans refused to consider any "cap and trade" program to reduce emissions of carbon dioxide and other greenhouse gases.