The Senate’s Democratic leadership had planned to debate the Climate Security Act in earnest this morning, but instead spent the day in the midst of a 30 hour preliminary debate period required by a Republican procedural motion. Both sides offered partisan recriminations, with Democrats blaming Republicans for stalling the bill, while Republicans accused Democrats of trying to limit debate and the number of amendments that can be considered.

During this 30 hour period, which expires overnight tonight, the debate focused on large-scale questions - in particular the absence of nuclear subsidies, the overall costs of the bill, and how revenue is scheduled to be allocated.

Moderate Republicans who have not yet committed to a side are an important constituency to watch during the debates. Without their support, and the support of coal- and industrial-state Democrats, the prospects for passage will evaporate.

During the morning session today, Senator Corker - considered by some to be a barometer for the bill’s fate - questioned the current auction revenue allocation scheme, referring to it as the “old time politics” of spreading money around to favored interest groups. According to his figures, 22% of the auction revenues (which are estimated to be $6.7 trillion) would be spent on things having nothing to do with carbon emissions. He also expressed his reservations about the “command and control” approach of the current cost containment provisions, which endow a five person “Carbon Market Efficiency Board” with all of the market oversight power.

Senator Johnny Isakson (R-GA) focused many of his comments on the lack of nuclear energy provisions in the Climate Security Act. He found it strange that both of the bill’s authors have come out publicly for additional nuclear power incentives yet drafted a bill that omits all references to nuclear power. He was, however, apparently encouraged by recent conversations with Senator Warner (R-VA). Senator Warner reportedly plans to offer the first amendments to the bill once the procedural debate ends, which will provide funding for nuclear engineering education and job training.

Senator John Kerry (D-MA) spoke during the afternoon session, stressing his support for a cap-and-trade program for carbon emissions, and pointing to the example of Clean Air Act’s cap-and-trade scheme, which has helped reduce sulfur emissions from power plants. Kerry also challenged the bill’s opponents, placing the “burden of proof” on them to provide real alternatives for emission reductions instead of mere political opposition.

Debate on the bill continues in the morning. Wednesday’s sessions should include the first amendments being offered, which are sure to spark considerable partisan rancor.

For further information about this topic, please contact Akin Gump.