A last-ditch attempt to kick-start stalled US climate legislation is expected to get underway this week with the long-awaited release of a compromise version of the controversial climate change bill that is currently facing stiff opposition in the Senate.
A bipartisan group of senators – Democrat John Kerry, independent Joe Lieberman and Republican Lindsey Graham – have been working for the past few months on a new draft of the legislation designed to secure support from moderate Republicans and Democrats from coal-rich states concerned about the impact the bill's proposed emission cap-and-trade scheme will have on the economy.
According to Reuters reports, the senators are poised to present a range of compromise proposals this week. "We will present senators with a number of options when they get back from recess," one Senate aide told the news agency.
The senators have previously signaled that the proposals will include a significant increase in support for nuclear energy and offshore oil drilling, both of which have widespread support among Republicans.
The Senate aide told Reuter's that President Obama's announcement of an $8.3bn (£5.4bn) loan guarantee for a new nuclear reactor project had helped increase the chances of a compromise being reached. "
The administration is really putting their money where their mouth is," the aide said.
What is less clear is the future of the emissions cap-and-trade scheme that formed the centerpiece of the original bill that was passed by the House of Representatives last summer, but has been blocked by fierce opposition in the Senate.
Some Democrat senators have called for the cap-and-trade scheme to be dropped so that a scaled down energy bill can be passed.
Senator Kerry, however, has insisted that some form of cap-and-trade remains essential to the bill, but Republicans remain broadly opposed to a scheme they fear will drive up energy bills and undermine US competitiveness.
Senator Graham has suggested that some form of "hybrid system" could be developed and speculation is mounting that the new proposals could include some form of "price ceiling" designed to limit the cost of the scheme.
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