House Democrats retool U.S. climate bill

By Richard Cowan

WASHINGTON (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.

The result is a bill that tries to dampen the short-term impact on companies and thus energy prices. For example, the retooled legislation would lower the price of future pollution permits that industry would have to buy, give more rewards for companies that take added steps to corral carbon emissions and give some firms a couple decades to fully transition into the program.

The chairman of the committee, Representative Henry Waxman, said his panel will debate and pass the bill by the end of next week. That would clear it for other House panels to consider before a debate by the full House, probably by August.

The legislation faces more uncertainty in the Senate.