Bravo to Michigan Congressman Dingell for Exhibiting Bipartisanship; the Crescendo for Harsh Cap & Trade Law is Fading Fast; As Predicted, Mkt Rallies

WASHINGTON (Dow Jones)--Divisions among Democrats over climate-change legislation spilled out into the open Friday, when Rep. John Dingell, D-Mich., used the Republican party's main talking point to criticize his own party's effort to impose mandatory reductions of greenhouse-gas emissions. At a House Energy and Commerce Committee hearing, Dingell said that the cap-and-trade program envisioned by the bill "is a tax, and it's a great big one." As he left the hearing, he told reporters that he wasn't ready to comment on whether the bill would pass out of the subcommittee. Republicans have been attacking the measure as a threat to the economy. Democrats have said that price increases for consumers won't be high. But House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., acknowledged that colleagues worried about disproportionate effects on their regions had "legitimate concerns." The comments point to intense negotiations in the days ahead of the first vote on the measure next week, in the subcommittee. Among those concerned: Rep. Butterfield, D-N.C., who expressed fears about how to help low-income people in his district. He told reporters that he would not support the bill as currently written, and that Democratic leaders were "struggling to get the votes" to clear the measure through the subcommittee. Butterfield is lining up with a block of Democrats, including Rep. Rick Boucher, D-Va., who among other things are asking that utilities be given free pollution allowances in the early years of the program, so that they can use the credits to offset higher electricity bills. The Obama administration's Environmental Protection Agency earlier this week had a tepid reaction to that idea, warning that it could raise costs elsewhere. But with votes in question, Democratic leaders may be willing to offer some free pollution allowances. "They're trying to give free allowances to perhaps get votes," said Rep. Joe Barton, R-Texas. Dingell had earlier joined Waxman, Rep. Ed Markey, D-Mass., and Boucher in writing a letter to President Barack Obama saying they were intent on passing a climate-change law. -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; siobhan.hughes@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=twLOjckXsMlvUI9pmwjNug%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 24, 2009 13:16 ET (17:16 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 01 16 PM EDT 04-24-09