U.S. Congress begins drive for climate change bill

By Richard Cowan

WASHINGTON (Reuters) - The U.S. Congress on Tuesday began work on a bill that would fundamentally change the way American factories and power plants use and supply energy as part of the Obama administration's drive to cut harmful greenhouse gas emissions.

"The time for delay, denial and inaction has come to an end," declared Democratic Representative Edward Markey in opening the House Energy and Commerce Committee's effort to produce a climate bill by the end of May.

President Barack Obama and his fellow Democrats who control both houses of Congress have made combating climate change a priority, worrying Republicans and some other opponents who fear skyrocketing energy and compliance costs.

Over the next five weeks the committee will debate and fine-tune a Democratic draft bill that would drastically reduce the amount of carbon dioxide and other industrial emissions that scientists say contribute to climate problems.

At the bill's core is a "cap and trade" plan to reduce carbon emissions -- lowering them by 20 percent by 2020, 42 percent by 2030 and 83 percent by 2050, with 2005 as a base year.

Manufacturing companies and utilities would get permits to emit less and less carbon and other pollutants, while also being allowed to trade those permits to other firms as they lower their reliance on fuels contributing to climate change.

The proposals also would set tough requirements on utilities, which would have to generate 25 percent of electricity from renewable sources by 2025. Some lawmakers on Tuesday said that timetable was too ambitious.

While the House could pass a bill by mid-year, the tougher fight will be in the Senate, where Republican opponents can use procedures to try to block controversial measures.