Climate bill has new oil-drilling restrictions

WASHINGTON — Sens. John Kerry and Joe Lieberman unveiled a bill Wednesday that aims to curtail pollution blamed for global warming, reduce oil imports and create millions of energy-related jobs.

The bill also includes new protections for offshore drilling and for the first time would set a price on carbon-dioxide emissions produced by coal-fired power plants and other large polluters.

The legislation aims to cut emissions of carbon dioxide and other heat-trapping greenhouse gases by 17 percent by 2020 and by more than 80 percent by 2050. Both targets are measured against 2005 levels and are the same as those set by a House bill approved last year.

"We can finally tell the world that America is ready to take back our role as the world's clean energy leader," Kerry, D-Mass., said at a news conference.

Lieberman, I-Conn., predicted the bill would pass, citing what he called a growing coalition of business, national security, faith and environmental leaders who are "energized" to work for it.

He and Kerry said Senate colleagues have been surprised at the support from business leaders, including oil companies, major utilities and the nuclear-power industry.

A coalition of 22 environmental groups, including the Sierra Club, Natural Resources Defense Council, Environmental Defense Fund and The Wilderness Society, also supports the bill.

The bill would allow states to opt out of federal drilling up to 75 miles from their shores, a concession to lawmakers concerned about offshore exploration following the Gulf spill.

It also would allow states directly affected to veto drilling plans of nearby states if they could show that significant negative effects would result from an accident.

States that can demonstrate significant negative effects could pass a law opposing a specific project.

States that go ahead with offshore drilling would retain 37.5 percent of the federal revenue generated, a shift from current policy. Now royalty revenue goes to the Treasury; states collect no royalties.