Main provisions

The bill calls for a 17 percent reduction in emissions of heat-trapping gases from the 2005 levels by 2020. That is less ambitious than the target of 20 percent initially sought, but slightly more aggressive than the approximately 15 percent that President Obama has proposed.

The bill sets further pollution reduction goals -- 42 percent by 2030 and 83 percent by 2050, with the latter just slightly higher than what Obama has suggested.

It establishes a cap-and-trade program to control climate-altering emissions, allowing companies to meet emission-limiting targets by investing in offset projects such as tree planting and forest protection.

The legislation also dictates an increase in the use of renewable energy sources and sets new efficiency standards for buildings, lighting and industrial facilities.

The bill requires new buildings to be 30 percent more energy-efficient by 2012 and 50 percent more efficient by 2016.

By 2020, electric utilities must produce at least 15 percent of their power from renewable sources such as wind and solar energy, according to the bill.

Deep rifts

The fact that the bill was narrowly passed reveals the rifts between Democrats and Republicans. After the bill's passage, Democrats hailed the legislation as historic, while Republicans said it would damage the economy without solving the nation's energy woes.

Democrats said the bill will create more "green jobs," decrease US dependence on foreign oils and convert the US economy to a more efficient one.

"Just remember these four words for what this legislation means -- jobs, jobs, jobs, jobs. Let's vote for jobs," Democratic House Speaker Nancy Pelosi exhorted her colleagues minutes before the vote.

However, Republicans warned the measure would send energy costs skyrocketing and denounced it as "the biggest job-killing bill that has ever been on the floor of the House."

The controversy surrounding the bill was self-evident in the House, where only eight Republicans joined 211 Democrats in favor, while 44 Democrats joined 168 Republicans in opposition.

Big compromises are needed to heal the deep rifts.

One big compromise involved the near total elimination of an administration plan to sell pollution permits to raise more than US$600 billion over a decade, and the money would be used to finance continuation of a middle class tax cut.

However, after heated debate, the plan was changed whereby about 85 percent of the permits are to be given away rather than sold, a concession to energy companies and their allies in the House -- and even that is uncertain to survive in the Senate.

In order to protect consumers from rising energy costs, the bill also requires giving rebates and credits to low-income households.

After the passage of the bill, Obama said: "Now it's up to the Senate to take the next step." The US Senate is expected to try to write its own version of a climate change bill, and whether the bill can manage its way through the Senate by the end of this year remains uncertain.

(Xinhua News Agency June 28, 2009)