Before leaving for the August congressional recess, Senator John McCain (R-AZ) and Senator Joseph Lieberman (D-CT) made a joint statement on the Senate floor calling for an economy-wide cap and trade program to reduce greenhouse gas emissions.  Please see the attached copy of their floor statements.
They laid out a timeframe for consultation with stakeholders, including U.S. industry, and development of legislation this fall.
This follows a series of legislative activity in the Senate since the conclusion of the international climate change negotiations in Bonn, Germany in July.  At the talks, without the support and direct participation of the U.S., nations agreed to continue to develop the rules for the Kyoto Protocol with a target date for ratification by 2002.
Other Senate activity includes:
Committee approval of climate change legislation sponsored by Senator Robert Byrd (D-W.Virginia) and Senator Ted Stevens (R-AL).  The bill would require development of a U.S. climate change response strategy with a long-term goal of stabilizing greenhouse gas emissions in the U.S.  The strategy would seek ways to mitigate emissions and promote technology innovation, climate adaptation research and efforts to resolve scientific and economic uncertainties.  It would authorize spending of $4.9 billion over 10 years.
Passage of a non-binding resolution in the Senate Foreign Relations committee calling for the U.S. to engage in the climate change negotiations.
Introduction of legislation by Senator Frank Murkowski (R-AL), Senator Chuck Hagel (R-NE), Senator Larry Craig (R-ID) and others that provide for tax incentives for energy efficiency and clean energy technologies, increased research on climate science and government coordination on climate change.
Introduction of legislation by Senator Sam Brownback (R-KS) and Senator Ron Wyden (D-OR) to enable reporting and provide credit for land management and sequestration under a national climate change program. 
Upcoming Administration and Congressional Activity
Despite statements made last week by EPA Administrator Christine Whitman and National Security Advisory Condolezza Rice, White House Chief of Staff Andrew Card said yesterday that the Bush Administration would likely have an alternative climate change proposal for consideration at the next negotiations in Morocco in late-October.  
A key issue remains whether the Bush Administration will support mandatory programs to reduce greenhouse gas emissions, like a domestic cap and trade system.  In March, President Bush said he would not support mandatory regulation of carbon dioxide emissions at power plants.  As recent events suggest, consideration of mandatory programs and emissions trading, including regulation of carbon, will be on the Senate agenda this fall.   Approaches to reduce greenhouse gas emissions will be considered through hearings and committee consideration of climate change legislation, multipollutant proposals and New Source Review reform.  
Enron's Advocacy
Enron will continue to promote its multipollutant proposal as a model for a domestic cap and trade program -- that could also provide a framework to address carbon emissions.  We will also offer our expertise on emissions trading and risk management to the Administration and Congress as they consider options to address climate change.
I will keep you posted on the status and movement on these legislative proposals.  Please feel free to contact me with questions about any of these proposals.
Please see links to several related news stories below:
Aide: Bush Warming Plan Likely 
Card Is 'Optimistic' Kyoto Alternative Will Be Ready by Fall 
http://www.washingtonpost.com/wp-dyn/articles/A35811-2001Aug5.html
McCain, Lieberman Urge Greenhouse Gas Curbs 
Senators Press Bush on Global Warming 
http://www.washingtonpost.com/wp-dyn/articles/A29163-2001Aug3.html
 

Lisa Jacobson
Enron
Manager, Environmental Strategies
1775 Eye Street, NW
Suite 800
Washington, DC 20006

Phone: +(202) 466-9176
Fax: +(202) 331-4717