The Global Energy

Top Democrats put the issue of climate change back in the spotlight Tuesday, debating legislation to cut greenhouse gas emissions while announcing $3.4 billion in new clean energy funds.

A key congressional committee began hearings on a “cap-and-trade” bill requiring emissions to be cut by more than 80 percent over the next four decades.

Questions related to global warming have been among the most politically contentious in recent years. Democrats are generally more receptive to proposals designed to curb energy consumption in order to slow climate change; leading Republicans continue to express concern about the necessity and economic impact of such measures.

President Obama has made the push for greater investment in a clean energy agenda one of his top domestic priorities. Attempting to move that agenda forward, the Senate Environment and Public Works Committee kicked off hearings on the Clean Energy Jobs and American Power Act. Supporters say the bill would reduce nationwide greenhouse gas emissions 20 percent by 2020 and 83 percent by 2050 through a cap-and-trade program under which companies would buy and sell emissions credits.

Almost one-third of the credits would be given away to the electric power sector through 2026 in an effort to diminish negative economic effects. Leading Democrats have expressed optimism that the bill would help stimulate the creation of new “green energy” jobs.

The measure is similar to a climate change bill narrowly passed by the House of Representatives in June.

Scientists “tell us that we have a narrow window of time in which to avert the ravages of global warming,” said Sen. Barbara Boxer, D-California. Boxer, who chairs the environment committee, called the legislation “our best insurance against a dangerous future.” It is “a responsible approach that sets attainable goals for gradual reductions in carbon emissions, and it protects consumers, businesses and workers as we move toward clean energy,” she said.

Administration officials testified on behalf of the bill, including Energy Secretary Steven Chu, Transportation Secretary Ray LaHood, Interior Secretary Ken Salazar and EPA Administrator Lisa Jackson. In all, 54 witnesses are scheduled to testify on the bill over the next three days.

Obama, meanwhile, unveiled what the White House called the largest energy grid modernization investment in American history. At a Florida solar energy center, the president announced $3.4 billion in Smart Grid Investment Grant awards.

“By facilitating the creation of a clean energy economy, building this 21st century energy infrastructure will help us lay a foundation for lasting growth and prosperity,” Obama said. The awards, going to 100 private companies, utilities and cities, will be divided into grants ranging from $400,000 to $200 million. They will be matched by $4.7 billion in private sector funds.